Salary of NRI accrue arise outside India

Dear Friends

Happy Ram Navami to all

I have a confusion regarding assesment of NRI and looking forward with clarification by member of my fraternity.

As we know that any Income which accrue and arise outside India and subsequentally received outside India is not taxable in case of an NRI.

But consider a practical case where an assesee NRI is employed in foreign shipping company and receives regular monthly sum in NRE accounts in equivalent dollors then how to consider his this receipt and how to show this into the Income Tax Return.i.e.

a) Whether this receipt requires to show in ITR and computation of total Income. and if we have to show in computation then under which section we claim exemption,since section 10(6)(viii) says for exemption NRI stays in India should not be more than 90 days in P.Yr.

b) If we do not consider this receipt anywhere in ITR and computation of total income then will it amount to fair presentation of Income.

Please guide me as earliest as possible.

Regards

Siddharth

Replies (1)

Dear Sir,

Happy Ram Navami to u 2........

What is relevant is the first receipt of Income and if in present case the employer is directly sending the salary in his NRE account then it is taxable under Indian Income Tax Act.

As far as Sec 10(6)(iii) goes, Sir it is applicable only for the remuneration EARNED DURING HIS STAY IN INDIA, since u have mentioned that salary is being credited in his NRE A/c as a matter of routine, so this benefit cannot be applied in ur case.

Moving on this receipt of salary can be made exempt  - If ur client  ask his employer to deposit his salary in an overseas account and then tranfer it to his NRE A/c

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