13 October 2017
Dear Sir, An Assessee who has has stayed for 120 days in India and rest of 240 days he has stayed outside India in F.Y. 2016-17. He has worked in a Private Limited Company for 120 days in India and he has earned salary from that Company. Whether the salary he earned from the India company will be exempted from tax liability as he has stayed for less than 182 days in India and he should be treated as Non Resident as per Income Tax. Please suggest what he should do, whether he has to pay tax in India or not.
13 October 2017
An assessee is considered as resident if he satisfies any of these condition: 1. has stayed in india for minimum 182 days during prev year
(OR) 2.has stayed in India minimum 60 days during previous year and 365 days or more during 4 years preceding the previous year
13 October 2017
In the above case, if the assessee has not stayed for 365 days during the 4 years preceding the previous year, Only then he can be treated as non resident
13 October 2017
If he has stayed for more than 365 days during the 4 years preceding the previous year, then he is a resident and his salary income and other income received or accrued in india will be taxable
14 October 2017
Dear Sir, As you said he has stayed for more than 365 days during the 4 years Preceding the Previous year, so he should be treated as a resident. My question is as I told that he has stayed for 120 days in F.Y. 2016-17 and 240 days outside India but as the second condition is satisfied he is treated as a resident. So as per my opinion the salary he earned in India for 120 days is fully taxable as per the taxable slab of the India Income Tax Act,1961. Please tell whether my assumption is right or not.
CAclubindia
