Taxation of NRI for Work from Home
This query is : Resolved
13 January 2023
My son is employed in US.
He is an NRI.
In the current Financial Year 2022-23, he came to India. His stay in India is covered partly by leave, and partly by Work From Home. His total stay in India is less than 182 days (and more than 120 days).
His leave salary and salary for the Work From Home (India) are credited in his Bank A/c in US.
Salary credited in his US Bank A/c for Work From Home (India), in terms of INR, will be more than Rs. 15.00 lakhs.
He pays income tax in US for the entire earnings.
Clarification may kindly be provided for the following :
(a) What will be his tax liability in India ?
(b) Does he have to file Income Tax Return in India ?
(c) Since he has already paid income tax in US, what is the procedure to avoid double taxation in India ?
He is an NRI.
In the current Financial Year 2022-23, he came to India. His stay in India is covered partly by leave, and partly by Work From Home. His total stay in India is less than 182 days (and more than 120 days).
His leave salary and salary for the Work From Home (India) are credited in his Bank A/c in US.
Salary credited in his US Bank A/c for Work From Home (India), in terms of INR, will be more than Rs. 15.00 lakhs.
He pays income tax in US for the entire earnings.
Clarification may kindly be provided for the following :
(a) What will be his tax liability in India ?
(b) Does he have to file Income Tax Return in India ?
(c) Since he has already paid income tax in US, what is the procedure to avoid double taxation in India ?
14 January 2023
a No tax liability as his stay in India is less than 182 days. He is non resident.
b Not required.
c Does not arise.
b Not required.
c Does not arise.
15 January 2023
Thanks for your prompt, kind reply, Sir. It is a big relief to me.
However, what is still prodding my mind is : Is there a possibility that the Tax authorities may treat the Work from Home (India) portion of the salary as "accrued in India" as the office work was done from here ?
In that case what will be the consequence ?
Regards.
However, what is still prodding my mind is : Is there a possibility that the Tax authorities may treat the Work from Home (India) portion of the salary as "accrued in India" as the office work was done from here ?
In that case what will be the consequence ?
Regards.
15 January 2023
No need to worry such things will not happen.
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