Taxability of NRI

This query is : Resolved

Deepanshu Agg. (Querist)
Follow

12 March 2009 A person say Mr.x is in employment outside india and has onle source of salary income which he deposits in NRI/NRE account and the same is withdrwan in India by his family memebers for household expenses etc..Would it be taxable in any of the hands of person?

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
Follow

12 March 2009 No Such Income shall not be taxable provided assessee is not ordinary resident in India during the year in which the salary is earned . Since salary it is not earned in India it does not accrue or arise in India. And mere remittance personally (i.e. bringing personally) through any other mode (e.g. through bank, daft. Travelers cheque) shall not constitute accrue or arise in India. For reference see

Section [Sec. 9(1)(ii)]
Salary payable for –
a) Services rendered in India; and
b) The rest period or leave period which is preceded and succeeded by the period during which services were rendered in India and forms part of the service contract of employment,
- shall be deemed to accrue or arise in India.

In case of you need further clarification send message to my PM

Regards …………………!

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now