Residant status and taxability

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gauravwagh (Querist)
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06 August 2011 Dear Team members,

I will move to Italy in last week of Sept 2011. I will be there for a period of 1 year for a project. Before this I have only gone once abroad for 10-15 days in 2007

In this period [Sept 2011-Sept 2012] I will be coming to india for business trips and holidays [home trips] it could be for more than 15-20 days in next 6 months

I will be paid salary & allowance on Italian payroll [parant company] during this period

I wanted to understand

1. What will be my residential status during FY2011-12
2. What will be my taxability in Italy & India ?

Kindly suggest

Thanks in advance

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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07 August 2011 If you will go in the last week of Sep and come back for 15-20 days trip in India, then you may not become an NRI.

If you have been in India for 182 days or more during FY 2011-12, you will be treated as Resident.

If you acquire NRI status, by not staying in India for 182 days, your Italian salary income will not be taxed here.

If you remain a resident your Italian will be considered here for the purpose of taxation however tax credit in respect of taxes paid in Italy will be available.

(Italy, being country of Birth of Smt Sonia Gandhi, must be having DTAA with India)

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