Nri tax query

Tax queries 869 views 2 replies

Aswath ram

24 Points Joined December 2011

Hi all,

i am currently working as a consultant and appointed in India. I travel frequently to Singapore for project work. Since April 2011 till dec 2011 approximately I would have been working in Singapore for more than 100+days.

Now I am required to change my status of employment to Singapore i.e from jan onwards I will employed in Singapore for the same organisation, but in Singapore office. My salary account gets changed to Singapore and Indian salary will be stopped from jan onwards.

If I consider jan to April -3months duration, I cross more than 180 days of staying outside. So for the salary that I get from jan to April 2012 in Singapore should I pay tax in India ? I'll. Be taxed under Singapore taxation, but do I have to pay Indian tax as well?? Meaning get double taxed if shift over to Singapore .

thanks in advance,

aswath.

Replies (2)

Z

Tax Consultation (US and India)

2970 Points Joined September 2011

You are currently employed in India and from Jan 11 you will be in Singapore by the reason of job .Therefore according to the provisions of sec 6(1) exceptional situation

For being a resident in your case, your stay should be 182 days or more in India

In your calculation you have considered month of April 2012 also which is to be considered in next financial year.

"travel frequently to Singapore for project work."

This will not be considered as LEAVING INDIA for employment for the aforesaid section

Therefore in my opinion for this financial year you will be considered as resident and slary is taxable in both the countries. But check for Double Taxation Avoidance Agreement

CA Ketan Waghela

Partner at Elite Educare

356 Points Joined December 2011

Aswath ji,

From April 11 to Dec 11 you were out of India for more than 100 days, lets say 100 days, and from Jan 12 to March 12 (April will be considered in next FY as correctly said by Mr. Z.) i.e. 90 days more.

Therefore, your total stay outside India for the AY 2012-13 is 190 days.

You do not satisfy the condition of staying in India for more than 182 days.

Frequently travel to abroad for project work is not termed as gone out for employment purpose. (correctly said by Mr. Z.)

Now for being a resident of India you need to satisfy the following basic condition:

Stay in India is 60 days or more in Previous year and 365 days or more during 4 years preceding to previous year.

In the absence of further information the following conclusion is drawn

1. If you satisfy the above mentioned condition then you are a resident of India and further additional conditions will be applied for which more information is needed.

2. If you do not satisfy the above condition then you are a Non Resident.

https://www.investmentyogi.com/taxes/how-do-i-determine-my-residential-status.aspx

The above link will help you to determine your residential status (RS) and your tax liability based on your RS and total income.

Members please correct me if I’m wrong.