Nri income received in saving bank account is taxable?

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Gaurav Singhvi (Querist)

11 February 2013 I am working outside India for more than 180 days but I have received income from abroad in my saving bank account. Wether the Income received in Saving account instead of NRI account is taxable in India?

Nikhil Kaushik

Nikhil Kaushik (Expert)

11 February 2013 Normally no. the situs of tax shall depend on where the revenue is earned. Normally the location of where the income is parked should not be an issue.

You need to check FEMA implications, if any, separately.

Anand

Anand (Expert)

13 February 2013 Nikhil, the Scope of total income is defined u/s 5 of IT Act. Income received in India or deemed to be received in India is also taxable in India irrespective of where it may have accrued or arisen. (Section 5(1)(a))
So if income is received for first time in India, it will still be taxable.

CA. Anuj Gupta

CA. Anuj Gupta (Expert)

19 February 2013 Here the exact residential status of Gaurav needs to be checked before going on further.

Also even if income is received in India and taxable on the same basis it can be taken care by using the beneficial provisions of DTAA.

Anuj
femaquery@gmail.com

Nikhil Kaushik

Nikhil Kaushik (Expert)

19 February 2013 Dear Anand,

Section 5(1)(a) is for resident taxation. In this case, the person is an NRI. So it is safe to assume his tax status for the relevant assessment year is not a resident.

So the right section for your argument is 5(2)(a) which also has similar argument as forwarded by you and I agree is correct too.

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