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Ananth (Finance Professional)     26 August 2012

Salary earned in uae

MR X left india on 01/12/2011 to UAE for employment and he is in  payroll of the UAE company which is registered & incorporated in UAE ie the salery will be credited into an UAE bank account.

As the job is said to be primarily based out of Mumbai but on UAE payroll, so does that mean that the entire amount will be tax free?I heard something like the employee should spend atleast more than 183 days in UAE so that the salary becomes tax free in India.Please clarify this.Also the UAE firm does not have a legal entity in India.
MR X is resident in india for IT  purpose as he was in india from birth till 30/11/2011.

I think as per DTAA between INDIA  & UAE  salary from 01/12/2011 to 31/03/2012 is not taxable in india as the following cumulative conditions is not fulfilled which is given below :


There is double taxation agreement between India and UAE . Article 15 of the said Double taxation Avoidance Agreement is regarding the Salary and Wages . It says that salary received by an Indian is taxable in India only if following conditions are fulfilled, tax shall be charged only in that state.

  • Indian is in UAE for less than 182 days ; and
  • the remuneration is paid by, or on behalf on, an employer who is not a resident of UAE; and
  • the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.


Also I plan to remit the amount periodically from UAE bank account to my Indian bank's savings account.Any tax implications here?

 1 Replies


r u working in india or outside india??

 if u work in india then it is indian income and it will be taxed irrespective of whether ur resident or non resident

'remittances to india are not taxable


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