Clarification required on taxation of income from UAE as salary for working remotely from India

Tax queries 435 views 1 replies

Hi,

I have been a NRI since FY 2013-14. I came to India in Sep 2024. 

From Sep 2024, I am working from India for a company in UAE and my salary is getting credited to my NRE account in AED, as I am waiting for my visa. My NRE account is still active because I am planning to go back to UAE once I receive my visa.  Most probably, I will have to stay in India until Mar 2026.

Please clarify the following:

  1. For FY 2025-26, should I consider the salary from UAE company under "Income from Salary" in the ITR?
  2. Is there any way that I can save on taxes, as I do not work for any Indian company?

Your guidance in this regard is very much appreciated.

 

 

 

Replies (1)

Q1: Is UAE salary taxable for FY 2025-26?

Yes, fully taxable as Salary income in India because you are rendering services physically from India.

Q2: Any way to save tax?

✔ Use:

  • 80C, 80D, NPS

  • Standard Deduction

  • Opt for better regime (Old/New)

  • Employer contribution to NPS

  • HRA structuring (if employer cooperates)

❌ No DTAA relief (UAE has no income tax).
❌ Cannot treat salary as foreign income to claim any exemption.


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