tax liability
This query is : Resolved
28 April 2010
a person went outside india during the year 2008-09 for employment and get remuneration from company per month, he transfer amount to india as per the need of his family. during that year 08-09 he was in india from 1.4.08 to 31.05.08. Whether he liable to pay tax in india, on his income earned outside india or amount which he had transferred to india? what will be his residential status?
29 April 2010
As per Section 6 (1) An individual is said to be resident in India in any previous year, if he satisfy at least one of two basic condition:
1 - he mus be in India at least 182 days or,
2- He is in india 60 days or more during previous year and 365 days or more during 4 years immediately preceding the previous year.
However for becoming resident and ordinary he has to satisfy two additional condition (sec 6(6):
1- He has been resident in India in at least 2 year our of 10 previous year and
2- He has in India for a period of 730 days or more in during 7 years immediately preceding the relevant previous years.
In the light of above provision the person resided 61 days in India during previous year However he has satisfied the additional condition or not can not say due to absence of information.
1 - he mus be in India at least 182 days or,
2- He is in india 60 days or more during previous year and 365 days or more during 4 years immediately preceding the previous year.
However for becoming resident and ordinary he has to satisfy two additional condition (sec 6(6):
1- He has been resident in India in at least 2 year our of 10 previous year and
2- He has in India for a period of 730 days or more in during 7 years immediately preceding the relevant previous years.
In the light of above provision the person resided 61 days in India during previous year However he has satisfied the additional condition or not can not say due to absence of information.
04 May 2010
Based on the above conditions defined in sec 6(6) it was found that the person is non-resident.
Now the question is can he file his return of income in india?
Now the question is can he file his return of income in india?
26 July 2025
Great question! Let me break down the tax liability and residential status for the person in your scenario:
---
### 1. **Residential Status:**
Under **Section 6** of the Income Tax Act, an individual is considered **Resident in India** in a financial year if:
* **Condition 1:** He stays in India for **182 days or more** during the previous year; OR
* **Condition 2:** He stays in India for **at least 60 days** during the previous year **AND** for **365 days or more during the 4 years immediately preceding** the previous year.
**Additional Conditions (to become Resident and Ordinarily Resident - ROR):**
* He must have been resident in India for at least 2 out of 10 previous years immediately preceding the relevant year, AND
* He must have stayed in India for at least 730 days in the 7 years immediately preceding the relevant year.
---
### Applying this to your case:
* The person stayed in India for only **61 days** in the year 2008-09.
* We don’t have info about his stay in India in previous years.
* Assuming he **does NOT satisfy the additional conditions**, he will be treated as a **Non-Resident Indian (NRI)** for the year 2008-09.
---
### 2. **Tax Liability:**
* As an NRI, **only income that is received or deemed to be received in India or accrues or arises or is deemed to accrue or arise in India** is taxable in India.
* **Income earned outside India (like salary from foreign employment) is NOT taxable in India.**
* **The amount transferred to India from abroad is NOT taxable.** Tax is on **income earned**, not on the remittance or transfer of money.
---
### 3. **Filing Income Tax Return (ITR):**
* If the person has any income taxable in India (like interest income from Indian bank accounts, rent, etc.), then he is required to file ITR.
* Salary income earned and received outside India **will not be taxable** or required to be reported.
* Even if he is NRI, filing ITR may be necessary if income arises in India.
---
### **Summary:**
| Aspect | Conclusion |
| ---------------------- | ----------------------------------------------- |
| Residential Status | Non-Resident Indian (likely, based on info) |
| Tax on foreign salary | No tax in India |
| Tax on remittance | No tax on amount remitted to India |
| Tax on income in India | Taxable as per Indian income tax laws |
| Filing ITR | Required only if taxable income arises in India |
---
If you want, I can also help you with the exact forms to be filed or documents required for NRIs. Would you like that?
---
### 1. **Residential Status:**
Under **Section 6** of the Income Tax Act, an individual is considered **Resident in India** in a financial year if:
* **Condition 1:** He stays in India for **182 days or more** during the previous year; OR
* **Condition 2:** He stays in India for **at least 60 days** during the previous year **AND** for **365 days or more during the 4 years immediately preceding** the previous year.
**Additional Conditions (to become Resident and Ordinarily Resident - ROR):**
* He must have been resident in India for at least 2 out of 10 previous years immediately preceding the relevant year, AND
* He must have stayed in India for at least 730 days in the 7 years immediately preceding the relevant year.
---
### Applying this to your case:
* The person stayed in India for only **61 days** in the year 2008-09.
* We don’t have info about his stay in India in previous years.
* Assuming he **does NOT satisfy the additional conditions**, he will be treated as a **Non-Resident Indian (NRI)** for the year 2008-09.
---
### 2. **Tax Liability:**
* As an NRI, **only income that is received or deemed to be received in India or accrues or arises or is deemed to accrue or arise in India** is taxable in India.
* **Income earned outside India (like salary from foreign employment) is NOT taxable in India.**
* **The amount transferred to India from abroad is NOT taxable.** Tax is on **income earned**, not on the remittance or transfer of money.
---
### 3. **Filing Income Tax Return (ITR):**
* If the person has any income taxable in India (like interest income from Indian bank accounts, rent, etc.), then he is required to file ITR.
* Salary income earned and received outside India **will not be taxable** or required to be reported.
* Even if he is NRI, filing ITR may be necessary if income arises in India.
---
### **Summary:**
| Aspect | Conclusion |
| ---------------------- | ----------------------------------------------- |
| Residential Status | Non-Resident Indian (likely, based on info) |
| Tax on foreign salary | No tax in India |
| Tax on remittance | No tax on amount remitted to India |
| Tax on income in India | Taxable as per Indian income tax laws |
| Filing ITR | Required only if taxable income arises in India |
---
If you want, I can also help you with the exact forms to be filed or documents required for NRIs. Would you like that?
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