19 July 2019
Iâ€™m an employee of a Public Sector Undertaking in India and on foreign assignment since 31st March, 2017 NRI and stayed abroad for more than 182 days in FY 2018-19/AY 2019-20 and not stayed in India for more than 30 days at a stretch in India (Working abroad on 60 days duty and 30 days off pattern) Iâ€™m receiving my monthly salary abroad in foreign currency. As part of my salary Iâ€™ve received EL encashment during the year which is also credited in foreign currency to my account abroad. However, processing of EL Encashment is out-sourced to LIC of India and in Form 26 AS, an amount of Rs. 3,10,870/- is being shown as income on which tax deducted is shown as zero (Name of adductor is LIC of India) In Part B of Form 16 issued by my employed this amount of Rs. 3,10,870/- is being shown as income from salary. My employer has clarified that Pat A of employer Form 16 as well Part A&B of Form 16 of LIC are not generated since there is no TDS deduction by employer and LIC. At the same, my employer is reflection EL encashment amount in Indian Rupees as â€śincome from salaryâ€ť I repeat here this EL encashment is also received in equivalent foreign currency abroad as part of income and as I understand Quote Provisions Under Indian Income Tax In case an individual is a non-resident, then only income received / deemed to be received or accrued / deemed to be accrued in India is taxable in India. Thus, broadly speaking, his overseas income would not be taxable in India, provided it is first received outside India. Unquote While filing IT Return should I show this amount of Rs. 3,10,870/- as income (Since this is reflected as income from salary in Part B of Form 16 issued by employer as well as FROM 26 AS (under deductor LIC) and claim exemption IF SO UNDER WHAT SECTION OF INCOME TAX SHOUL I claim exemption for this amount Also please clarify pension income from annuity of pension fund is taxable and if so under what section
19 July 2019
You are right NRI's overseas income is not taxable in India. Show this amount of Rs. 3,10,870/- under exempt income schedule. Pension income from annuity of pension fund is taxable under income from other sources.