Salary taxable or not?

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CA Saba Naaz (Querist)
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18 September 2017 Hi friends, Please help me on this issue: A person working outside India in a German company receives salary in his NRE account or Indian bank account. What will be the tax consequences in India- a) in case he is resident in India b) in case he is non-resident in India.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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18 September 2017 1. Fully Taxable irrespective where it received. 2.Taxable only if received in Indian Bank.

CA Saba Naaz

CA Saba Naaz (Querist)
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18 September 2017 Thank you. How can a person save tax in this case?

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CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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18 September 2017 Received same in Germany.

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CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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18 September 2017 Received same in Germany.

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K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)
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18 September 2017 Thank you. How can a person save tax in this case?

If he's a resident, you can use options like 80C,80CCD,80D etc to save tax from income earned .

If he's a non resident, apart from basic exemption limit, 80C benefits are not available.

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CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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18 September 2017 But any person who is resident outside India& income accrued & received outside India then same is not taxable in India.

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K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)
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18 September 2017 Yes. I just wanted to compare that non resident cannot claim deductiopns under 80C though irrelevant here,

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CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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18 September 2017 Ya agreed with you on that matter.