Nre taxation

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Sabu (Querist)

10 December 2011 I am holding an NRE account in India and working in Qatar. My salary is getting credited in my account from my UK head office though my work place is Qatar. Do my income is taxable in India? I am an NRI as per the definition of non resident. Appreciate your support

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

10 December 2011 In NRE A/c proceeds are remitted through banking channels so as to reach in your NRE A/c. These proceeds are in Foreign Exchange .
It is in respect of salary earned outside India. The salary received through NRE A/c is not taxable. It can be treated as remittance only.

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Sabu

Sabu (Querist)

10 December 2011 Thank you so much. The IT act says income accured and recieved in India is taxable. In my case the salary is debited directly from my headquarters in UK and I am working in Qatar and hold a work permit. Is this taxable? apologies for repeating the question..

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

11 December 2011 If convenient, you may open a Bank A/c in Qatar also. Here, place of receiving salary is the main concern. It is deemed that the amount brought through NRE A/c is received first in foreign exchange by an agent (Bank)
who remits the same to you. You may envisage other experts opinions also.

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