Clarification on residential status and implication on taxes

Dear Priya

As per section 6 of income tax act 1961 :- A person shall be resident in India if he/she is in India for a period of 182 days during the previous year.

1. For 2012-13 :- if you were in india for 182 or more days in india during the FY 2012-13 than your residential status was "Resident in India".

As per section 4 of income tax act 1961, The all income earned by a resident in India or Outside India will be taxable in India.

2. For 2013-14 :- As you mentioned, you were deputed in the year 2012-13 in foreign for employement perposes, so condition of 182 days under section 6 of income tax act 1961 could not fullfil  during the year 2013-14. And your Residential status become Non- Resident India Indian in that year.

You could show yourself as NRI in Income tax Return but all income earned or recived in India will be taxable in Your Hand.

As per section 9 of Income Tax Act 1961 "Income Deemed to be Accrued or Arise in India", Any Income Accrued or Arise during the previous year from Indian Source will be taxed in India in the hand of NRI.

So Income Earned as

-Salary

-Rent

- or any other way taxable in your Hand.