Indian citizen getting salary income in nepal

This query is : Resolved

CA.Jagannath Patro (Querist)
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06 January 2017 Dear Respected Members,
I have a query as below:
I am a Citizen of India and working in Nepal since 2013. Every month I am getting salary income in my Nepal bank account after deducting salary TDS as per Nepal Income tax rules. Every year I spend more than 300 days in Nepal.
Some part of my income I am transferring to my Indian Bank account (Resident SB Account). Out of those remittances I have made some investments in India in FD, RD, Insurance and mutual funds.
As per my understanding in Article-4 and Atricel-15 of DTAA with India and Nepal, I will be treated as a resident of Nepal and my salary income will be taxed in Nepal only and the same income will not be taxed in India.
1. Shall I be treated as a Non-resident In India.?
2. Do I need to file return of Income in India?
3. Do I need to disclose Nepal’s salary income in the return? Of need to disclose income from investments only?
4. If I am not filing return of Income in India, It there is a risk of getting notice for Indian Income tax authority to disclose the sources of income remitted Nepal?
5. What are the supporting documents to be kept ready to justify that the remitted income was already taxed in Nepal?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 January 2017 ! Yes you will be treated as NRI.
2 Yes, on the income earned in India.
3 You need to disclose only investment income in India.
4 No need to disclose income remitted from nepal.
5 Keep copies of IT return filed in Nepal.

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