Dear Sir,
My friend is an employee of an Indian comapny who is currently working in Dubai on an assignment.The assignement is likely to extend into the next couple of years.
Abroad he is paid only the daily allowances in foreign cuurency and continues to draw salary in India in Indian currency.
He has been outside India during last year for more than 182 days.
However given the fact that he is still in employment with the Indian company and has moved out of India only for a definite period of time, say for a couple of years/until completion of the project would he need to file his returns in India as NRI or can he continue to maintain resident status.
Also in either case please clarify on the taxability of the allownces received outside India. Would it be exempt in India.
Thanks in advance.
CAclubindia
