Taxation of Resident but not oridinarly resident

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An Indian citizen, classified as resident but not ordinarily resident (RNOR), worked from India during the pandemic due to travel restrictions. Although employed by a foreign company and paid into a foreign bank account where taxes were also paid, the income earned while working from India is considered taxable in India. Relief is available for foreign taxes paid, as per applicable Double Taxation Avoidance Agreements (DTAA).

Sandeep Kumar P

Sandeep Kumar P (Querist)
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13 July 2022 An Indian citizen who is been employed outside India and falls under category resident but not oridinarly resident had come to India during FY 2020-21 for a short visit but due to pandemic he couldn't leave India. During this time he worked from India (WFH) and received salary in foreign bank account and also pay taxes in foregin country for the same . Does the aforesaid income is taxed in India?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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14 July 2022 For RNRO all the foreign income accrued or earned is not taxable in India. Here it is income earned by employee through WFH in India. Though salary is credited to foreign bank account, but it would be called to be earned in India. So, it will be taxable in India, with rebate of taxes paid in foreign country as per applicable DTAA.

Sandeep Kumar P

Sandeep Kumar P (Querist)
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14 July 2022 Thank you Sir.
A small further clarification that client is of view that since he is been employed by foreign company where he is also resident of that country and paying taxes , can't he take an exemption that income is been accrued outside India?

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