Foreign tax free money transferred to india

Yeah, the above said income is liable for income tax as the amount is initially transferred to an indian bank account as per section 9 of Income Tax Act, 1961. How ever you can avail the benefit of Double Taxation Agreement between Bahrain and India and reduce the tax liability.

As per Income Tax Act , The income directly deposited into Indian bank account is deemed to be income received in India. The alternative which you can follow is you can open  a bank account in Bahrain soon and ask the employer to deposit it there. So that it will not be taxed. Do this before the income received in India  exceeds Taxable value i.e. Rs. 2,00,000/- . Further transfer to India is not taxable anyway. The creteria is it should not be directly deposited in indian bank account . 

All the best,