Salary received in nre a\c by us co

Tax queries 658 views 4 replies

Hi,

I am a Indian Citizen but for Income tax purpose i am a non Resident, I have been hired by a US Co which pays me the salary in my NRE A\c, I am on a post where i dont have a specific location for the job i am 1 month in India and other month in some other country?

My Query is whether i should file a return in US and is my salary taxable in India or not?

Thanking you in advance

Replies (4)

Hi ...

You have already stated that you are a Non-resident for Income Tax Purpose, in which case only income received from India will be taxable in your hand. If the salary received from India exceeds basic exemption limit ( 2 Lakhs from 01.04.2012) you will have to pay tax. 

Whether you should file a return in US will depend on your tax residency status under American Taxation Laws, which you have not mentioned. ( It depends on whether you satisfy the "Substantial Presence Test")

Hi Pankaj !

I Agree with Roshan Thomas.

Since the employer is not an indian company salary received therefrom cannot be said to be taxable since the assessee is non resident in India. Only Indian Income (received from indian company) shall be taxable. Foreign income will are exempted.

No Idea about US taxation.

My case is that two month i have to work and one months off in which i stay here in india and i get the basic salary as per my terms with the company. i wanted to know that what should be done to that salary which i receive during my off period and one more thing i dont have any residential status in any other country as i am not on a permanent place and does not exced 180 days in any of the country, what would be my position for the salary which i receive?

In that case you will have to pay tax on income received in India under Indian Tax Laws and on income received in America under their Law. Since there is no overlapping you dont have to worry have Double taxation avoidance agreements .


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