my friend is an indian resident and has got job offer from a Nigerian Company to work in nigeria for 3 years period on a contract basis. They told him that monthly salary in US $ would be directly deposited to an indian account of his choice. and besides that, they would be paying some nigerian dollars for local expenses.
Now in this case, please tell me about the tax laibility he would have as an indian citizen on income deposited to his inidan account and income transfered by him from nigeria to his indian account.
06 December 2009
in that case, he will be a Non-resident from the point of view of Income tax laws & therefore, his income outside India is not taxable in India.
In your friend case, Income shall be recieved in India and irrespective of his tax residency status, your friend is require to pay taxes in India.
Try to avoid depositing this salary amount directly to your friends Indian Bank Account.
If you are routing it as deposit of salary to Neigerian/Outside India Bank Account and then remitting such amount to Indian Bank Account, there wont be any tax libility if your friend is Non Resident.
This is because of section 5 and section 7, Income recieved/deemed to be recieved in India shall be taxable for all types of assesee irrespective of residentail status.
CAclubindia
