UK NRI stayed in India for over 183days in this FY

Save Share

This query is : Resolved

Quick Summary

A UK NRI working in India for over 183 days is considered a Resident Indian for tax purposes, making their global income taxable in India. However, double taxation can be avoided by claiming credits for UK taxes paid, as per the Double Taxation Avoidance Agreement (DTAA) between the UK and India. Taking steps like obtaining a Tax Residency Certificate and Tax Paid Certificate from the UK will be necessary for tax filings in India.

Abhishek Kumar

Abhishek Kumar (Querist)
Follow

08 October 2021 Hi,

What can i do to avoid Double taxation on my salary earned in the UK while being in India for over 182 days this FY?

Would taking an Export Import TAN/License help in managing taxation?
This is what a friend was suggested. But he is staying in India and working for a UK company and earning in Pounds. Not sure if this would apply to me as i have been in the UK for the past 2 years and came back to India for getting my visa type changed. But the new visa vignette was issued with a delay and i have crossed this 182 days limit in this FY.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

08 October 2021 Though you will be Resident Indian for the purpose of tax liability under IT act, and your total global income will be taxable in India, subject to rules under DTAA with UK. At the same time you will get credits of the tax paid in UK, subject to your tax liability in India for the salary income.
So, overall you won't be paying tax in both the countries.

Message likes : 1 times

Abhishek Kumar

Abhishek Kumar (Querist)
Follow

09 October 2021 Thank you Dhiraj Sir for answering my query. If you don't mind, can you please guide if i need to do something specific like show myself as a consultant in India or take a Export import license to get some tax benefits?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

09 October 2021 As you are getting salary, all such things will not help to reduce your tax compliance. At the most get tax residency certificate & tax paid certificate from UK, for filling form 67.

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

Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!