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NON RESIDENT STATUS REG

09 July 2019

Suppose a person has got an employment offer from a overseas company on 1st june 2019 and has left the country by 15th august 2019.
whether he is qualified to be classified as non resident as per IT RULES and whether his salary earned abroad is exempt from tax at India.

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9 Replies

Krishna Chaudhary (Accountant) (4531 Points)
Replied 09 July 2019

He is resident for AY 2019-20 & AY 2020-21 both. His salary will be taxable.
As per FEMA he will be Resident in FY 19-20 & NRI in FY 20-21.

Hari Haran (8 Points)
Replied 09 July 2019

Sir should he pay tax on salary earned during his stay abroad for the present FY. since he is going on aug 15 itself, his stay outside india is more than 182 days, isnt his salary earned abroad is exempt from tax in india.

Krishna Chaudhary (Accountant) (4531 Points)
Replied 09 July 2019

He need to pay tax on all his income because a resident's universal income is taxable.

Hari Haran (8 Points)
Replied 09 July 2019

But dosent he qualify to be a non resident during the current FY as per FEMA and the overseas salary income eligible to be exempted?

Krishna Chaudhary (Accountant) (4531 Points)
Replied 09 July 2019

You need to pay tax under Income Tax Act.And as per definition you r resident.need to pay tax

Hari Haran (8 Points)
Replied 09 July 2019

ok sir thank you..

deepak Agarwal (DG) (23 Points)
Replied 18 July 2019

I was in Singapore for contract employment for 190 days last year ( 18-19) since there is DTA agreement with Singapore how much of my Singapore salary will be taxable having paid tax there. I have recvd SGD 35000/- and paid tax of SGD 200/- . I am still working at Singapore.

Girish Trivedi (None) (310 Points)
Replied 18 July 2019

I think for query by Mr Hari Haran... as the assessee has left India for EMPLOYMENT. So, in second option days for residency. 180 should be counted and not 60. So he should be NRI even under IT act.

Please rectify, if I am wrong.