Income received in India

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Non resident received salary for working outside india but in a bank account operated in India directly. Taxable?
Replies (7)

salary received by non resident outside india is not taxable even though he has received his funds in a bank account operated in india

What is the meaning of received in India?

services rendered in india

If services are rendered in India that is taken as Income accrued in India isn't it?

Salary is paid by an INDIAN company and/or service is rendered in India is taxable in India irrepective of residential status, received in Indian bank account or outside etc. 

In your case, it is NOT taxable in India however there is a scope for litigation as the Income Tax Department will try to tax it - it needs to be defended well - check this post for case laws/judgements that you can use: NRI Seafarer Taxation: Way forward after 2016 ITAT Tapas Kr. judgement

Thanks!

 

Sir. Very informative post. When a non resident assessee receives his salary directly in India , does that mean it is received through his NRE a/c ? Is it possible to credit the same in a savings bank account in India directly by the company? If that is possible what is the position?

Thank you for the kind words. A non-resident as per FEMA can only maintain non-resident accounts (e.g. NRO/NRE etc.) - he cannot maintain a resident account - so, maintaining a resident account will be a FEMA violation in the first place. 

Both NRE (or for that matter NRO) or a resident account is an Indian account - irrespective of which account the salary is credited in, ITD can try to tax it (as explained in my previous response)

Thanks!


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