Nri tax calculation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 January 2017 Hello,

If I am RESIDENT under definition of INCOME TAX ACT but NON RESIDENT under definition of FEMA act, how my income will be taxed, if my income is as below :-

Salary Income from my overseas employer, getting in my overseas account RS12,000,000
Interest on NRE fixed deposit Rs 6,000,000

*I live in UAE, so is there any DTAA benefit will be applicable ?..

Regards
Pkc

Mayur

Mayur (Expert)
Follow

13 January 2017 1. For Income tax, there are two resident status possible. a. Resident and ordinary resident & b. Resident but not ordinary resident. Both have different tax implication for the given case as follows:

For "a" it is taxable subject to DTAA available if any. (For UAE there exist a DTAA)
For "b" it is not taxable.

Interest in NRE Deposit is not taxable in any case (Either a or b)

Querist : Anonymous

Querist : Anonymous (Querist)

13 January 2017 Dear Mayur Ji,

Can you please clarify with below mentioned details :-

I am NRI since 1996 but for year 2014 and 2015, I have stayed more than 182 days in India and thus I fall in RNOR category during those 2 years but in 2017, if I stay here more than 182 days, I will become 'Resident' under ITA act but remain 'Non Resident' under FEMA, as I am still working in overseas and getting my salary there.

Please let me know, what will my taxable Income, if I stay for more than 182 days in India in coming years, if

a) My Salary is 12,00,000/yearly in UAE, I get paid in overseas account.
b) My NRE FD interest is 6,00,000/yearly
c) My Rent income is 150,000/yearly in India

*Can you please calculate and let me know, what will be taxable here.

*There is DTAA treaty between UAE and INDIA but how it will be applicable on above Income, as my known CA
doesn't know much about NRI taxation..

*Shall I keep getting tax free Interest, if I remain NRI under Fema but Resident under INCOME TAX ACT.
(Under section 10(4)ii of income tax act)

I will appreciate, if you calculate and let me know. Prakash pra0343@yahoo.com 9six3six8xix0343

Mayur

Mayur (Expert)
Follow

13 January 2017 Hello Prakash,

You are asking about Chargeable Services.

Querist : Anonymous

Querist : Anonymous (Querist)

13 January 2017 Its okay, plz give me a miss call and we will discuss n fix.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now