Salary at outside india
This query is : Resolved
04 May 2012
How to calculate tax on salary at oustide india. Please provide method & process for the same. and what kind of proof req. to submit.
05 May 2012
You have to see the status of residence before return.If status is NR then no need or resident then go same way as regular case.
22 July 2025
Got it! Here’s a simple breakdown for taxation of salary earned outside India when your residential status is Non-Resident (NR):
1. Determine Residential Status
Since you said status is Non-Resident, only income earned or received in India is taxable in India.
Salary earned outside India and received outside India is not taxable in India for Non-Residents.
2. Taxability of Salary for Non-Residents
If salary is for services rendered outside India and paid outside India, then no tax liability in India.
If salary is for services rendered in India (even if paid outside India), then it is taxable in India.
If salary is received in India (even if services were rendered outside India), then taxable in India.
3. How to report in Income Tax Return
If taxable in India (service in India or received in India), disclose salary under "Income from Salary".
If fully exempt (service outside India and salary received outside India for NR), you may not need to report that salary.
4. Proof and Documentation
Copy of your appointment letter / contract showing place of work.
Salary slips or bank statements showing receipt of salary outside India.
Proof of tax paid abroad (if any) to claim relief under DTAA.
Form 16 or equivalent, if employer provides.
Proof of residential status (Form 10FA or declaration).
5. If Taxed Abroad
India has Double Taxation Avoidance Agreements (DTAA) with many countries.
If tax is paid abroad on same income, you can claim foreign tax credit in India.
To claim credit, submit proof of tax paid abroad along with your ITR.
1. Determine Residential Status
Since you said status is Non-Resident, only income earned or received in India is taxable in India.
Salary earned outside India and received outside India is not taxable in India for Non-Residents.
2. Taxability of Salary for Non-Residents
If salary is for services rendered outside India and paid outside India, then no tax liability in India.
If salary is for services rendered in India (even if paid outside India), then it is taxable in India.
If salary is received in India (even if services were rendered outside India), then taxable in India.
3. How to report in Income Tax Return
If taxable in India (service in India or received in India), disclose salary under "Income from Salary".
If fully exempt (service outside India and salary received outside India for NR), you may not need to report that salary.
4. Proof and Documentation
Copy of your appointment letter / contract showing place of work.
Salary slips or bank statements showing receipt of salary outside India.
Proof of tax paid abroad (if any) to claim relief under DTAA.
Form 16 or equivalent, if employer provides.
Proof of residential status (Form 10FA or declaration).
5. If Taxed Abroad
India has Double Taxation Avoidance Agreements (DTAA) with many countries.
If tax is paid abroad on same income, you can claim foreign tax credit in India.
To claim credit, submit proof of tax paid abroad along with your ITR.
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