Taxability of a non resident

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ANKUSH GARG (Querist)

22 July 2018 Mr. X is captain on a ship from last ten years and resides outside India for performance of his and thus entitled for the status of Non-resident. In any particular previous year he received some Part of his Salary Directly from employer (i.e. did not receive outside India and repatriate to India) in his NRO Account maintained in India in USD which was converted by bank in INR.

Now My Question is that, whether the same will be taxable in India or Not?
Second, Does it make any difference if he Received such Salary in his NRE Account instead of NRO A/c?

Please Quote Section and Rules or Notification on which based your answer is.

Thanks in advance.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

22 July 2018 Tax free vide CBDT Circular No. 13/2017 dated 11.04.2017

ANKUSH GARG

ANKUSH GARG (Querist)

22 July 2018 Dear sir,

As per circular 13/2017 as discussed by you states that the salary will be exempt if received by seafer in NRO account maintained in India.

But in my question, the salary is received in NRO account not in NRE account.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

22 July 2018 Direct remittance by employer to employees bank a/c in India were treated as
' Income accrued in India' and were assessed in India. To mitigate the hardship
CBDT hosted the referred circular. In the light of the underlying fact, it seems to
me that nature of account is immaterial since the spirit of the circular will be lost
if distinguished.

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