Mr. X goes for employment purpose outside India for the first time in life in December 2012 and returns after March 2013. He worked for a company which is subsidiary of Indian Company.
Therefore for AY 2013-14 he is Resident of India. The salary was later remitted to NRE account in India. Please note that no tax has been paid by him in the foreign country. My doubts are:
- Whether Salary received by him abroad is taxable in India?
- Whether the interest on the NRE account is exempt? (Please note that He’s a Resident!!)
- Has Double Taxation Avoidance Agreement between the 2 countries anything to do with this matter?
Thanking you in Advance!!
CAclubindia
