Re: Resident Status
This query is : Resolved
16 December 2008
I am On Deputation from my company to UAE since July20 and would be spending more than 183 days outside India in the current fiscal year.
Will I be treated as NRI for the Current Year?
My Company is not paying any salary for this period and paying allowance in USD which is being remitted from India to Dubai and encashed in UAE.Company is Paying FBT on these Payments.Would this amount be Taxable even if I am Outside India for more than 183 Days in the current Year.
Please advise?
Will I be treated as NRI for the Current Year?
My Company is not paying any salary for this period and paying allowance in USD which is being remitted from India to Dubai and encashed in UAE.Company is Paying FBT on these Payments.Would this amount be Taxable even if I am Outside India for more than 183 Days in the current Year.
Please advise?
17 December 2008
You will be treated as an NRI.
Second part of the question is left open for discussion.
Second part of the question is left open for discussion.
Ravikumar.G
(Expert)
17 December 2008
Also look into the status of ROR and RNOR.
If Income accruing or arising outside India from any source other than Business / Profession controlled from India.
ROR - Taxable
RNOR - Not Taxable
NR - Not Taxable
For further Read sec 5 of the Income tax act, 1961.
If Income accruing or arising outside India from any source other than Business / Profession controlled from India.
ROR - Taxable
RNOR - Not Taxable
NR - Not Taxable
For further Read sec 5 of the Income tax act, 1961.
21 December 2008
Thanks for the reply.
The second Part of my question is still unanswered.
Please advise.
The second Part of my question is still unanswered.
Please advise.
20 July 2025
Hey! Here’s a breakdown regarding your resident status and taxability:
1. Resident or NRI?
As per Income Tax Act (Section 6), a person is considered Resident if:
He stays in India for 182 days or more during the financial year, OR
He stays in India for 60 days or more AND 365 days or more in last 4 years.
Since you are on deputation outside India from July 20 and spending more than 183 days outside India in this financial year, you qualify as a Non-Resident Indian (NRI) for the year.
2. Taxability of Allowance Paid
Your company is paying allowance in USD, remitted from India to UAE and paying Fringe Benefit Tax (FBT) on it.
For tax purposes, income received or accrued outside India by an NRI is generally not taxable in India.
However, if the amount is paid or accrued in India, it might be taxable.
Since the salary is not paid, only allowance remitted from India, this allowance may be taxable in India as it is considered accrued or received in India.
3. FBT Impact
FBT is a tax paid by the employer, it does not affect your personal tax liability directly.
Summary:
You are an NRI for this FY since >183 days outside India.
Salary is not paid, allowance remitted from India is likely taxable in India.
Income earned outside India and received outside India by NRI is generally not taxable.
Consult a tax advisor with full details for precise planning.
1. Resident or NRI?
As per Income Tax Act (Section 6), a person is considered Resident if:
He stays in India for 182 days or more during the financial year, OR
He stays in India for 60 days or more AND 365 days or more in last 4 years.
Since you are on deputation outside India from July 20 and spending more than 183 days outside India in this financial year, you qualify as a Non-Resident Indian (NRI) for the year.
2. Taxability of Allowance Paid
Your company is paying allowance in USD, remitted from India to UAE and paying Fringe Benefit Tax (FBT) on it.
For tax purposes, income received or accrued outside India by an NRI is generally not taxable in India.
However, if the amount is paid or accrued in India, it might be taxable.
Since the salary is not paid, only allowance remitted from India, this allowance may be taxable in India as it is considered accrued or received in India.
3. FBT Impact
FBT is a tax paid by the employer, it does not affect your personal tax liability directly.
Summary:
You are an NRI for this FY since >183 days outside India.
Salary is not paid, allowance remitted from India is likely taxable in India.
Income earned outside India and received outside India by NRI is generally not taxable.
Consult a tax advisor with full details for precise planning.
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