Resident earning outside india for 3months

Tax planning 703 views 3 replies

An Indian Resident Was Working in India For F. Y. 12-13 From April - November. In December he gets employed in Saudi Arabia. The Salary he received for 3months from Jan to March is in Indian A/c HDFC Bank Normal A/c i.e. neither NRE A/c Nor NRO A/c.                 

     His shift includes 35working days & 35 non working days i.e. while he is off from work he visits india every 35days later. For F. Y. 13-14 will he be an Resident / Ordinary Resident or Non Ordinary Resident. 

Now From April he has opened an NRE A/c in India in which he receives his salary?

So the salary earned in NRE A/c is taxable or not?

Kindly provide further guidelines to explain me in detail.

Thanks in Advance.

Replies (3)

AS PER SECTION 5,7 & 9 OF INCOME TAX ACT 1961 ..Following income is taxable in case of Resident and Ordinary Resident..

1- Income Received in India

2- Income Earned in India

3- income  Earned outside India

in simple words,..in case of ROR all income is taxablr...

in your case income is taxable ..in my opinion. 

In case of Ordinary Resident, He earned Salary for 2.5 months in Saudi Arabia. So I think he will be entitled to DTAA benefit.

If so at What rate His Salary earned in Saudi Arabia will be taxed ? 

 

Regards,

CA Sk Md Asif Ali

DTA benifit can only be availed if he has been taxed in the earning country and DTAA agreement is there, above case it will be taxed, als see the recent June2016 ITAT judgement by Kolkata Court


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