Nri taxation

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Sharad

Associate

28 Points Posted on 03 January 2014

Hi – I took up an employment outside India from August 2013. However, I don’t have a work permit yet, and I am currently working (and likely to work until March 2014) on a Business Visa. I will not be a resident under Section 6(1)(a) of the IT Act. My query is whether I can be considered a "resident" under Section 6(1)(c) of the Act? Will the benefit of explanation (a) to Section 6 be available to me? Can I be considered to have left India "for the purposes of employment outside India" even though I do not (and will not) have a work permit till March 2014? All salary from my current employer (since August 2013) is being paid and received outside India.

Thanks,

Sharad

Replies (3)

Shivashish

Chartered Accountant

2181 Points Posted on 04 January 2014

Yes, The benefit of employment outside India shall be available to you. It does not affect income tax deptt. whether you are having proper work permit or not..

Sharad

Associate

28 Points Posted on 06 January 2014

Thanks Shivashish.

So essesntially, even if do not have a work permit, I will be considered to have left India "for the purposes of employment outside India".

Given that I will be spending more than 180 days outside India in FY 2013-14, will my income received outside India subject to tax in India? I have rental and investment income in India for which I will need to do tax filings in India. Do I need to disclose/ report the foreign income in the tax filings?

thanks,

Sharad

Shivashish

Chartered Accountant

2181 Points Posted on 09 January 2014

Income received outside India is not taxable. However rental income and investment income is taxable and you need to do tax filling for it. Further you don't need to disclose foreign income.