Taxation of NRI for Work from Home

Save Share

This query is : Resolved

Quick Summary

This discussion addresses the tax implications for an NRI employed in the US who worked remotely from India for part of the financial year. The initial advice suggests no tax liability in India as the stay was less than 182 days and income was earned while considered a non-resident. However, a follow-up question probes whether the 'work from home' portion of salary could be deemed 'accrued in India', potentially creating tax obligations. The reassurance provided is that such a scenario is unlikely to be treated this way by tax authorities.

Kannan Iyyengar

Kannan Iyyengar (Querist)
Follow

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 ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

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.

Kannan Iyyengar

Kannan Iyyengar (Querist)
Follow

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.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

15 January 2023 No need to worry such things will not happen.

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