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Tax liability for earnings out of india

Tax queries 468 views 4 replies

Appreciate and will be obliged if somebody can guide me.

One of the friend has been employed in India till 28th June 2015. He has taken the employment out of India from 1st July 2015. 

1. What will be his tax liability for 2015-16 for earnings out of India from 1st July 2015. 

2. He has paid the tax as per liability till 28th June 2015 as per self assemenet

3. Is the income not taxable if he stays out of India for total period in excess of 182 days during this financial year?

4. How he can make payments to his family for household and is it taxable?

I am also exploring out of India job opportunity as we have stuck in discussion need valuable guidance from knowledgeable resource.

BR

Replies (4)

Hello Ramesh,

As you know already if the stay is more than 182 days, assessee can be on Non resident status which is nothing but his income is not taxable in India during that particular Assessment year.

As tax was already remitted for the income til June, you can simply remit the return next year by including only those 3 months income.

As far as sending the income to family, you can always send your foregin income to indian bank accounts which is not taxable until you are on non resident status.

 

Thanks,

Suri

Dear Sir

 

As per section 6(1)(a) and explaination-I of Income Tax Act 1961 your Residential Status fro the FY 2015-16 is Non-Resident. Your total stay during the financial Year 2015-16 is less than 182 days as you mentioned above.

 

And Explaination-I of Section 6(1)(a) specifies that In case of an Individual being a citizen of India, who leaves India in previouse year for the perpose of employment outside India the provisions of sub-clause (c) of Section 6 shall apply in relation to that year as if for the words "sixty days", occurring therein, the words "one hundred and eighty-two days" had been substituted ;

 

1. As your Residential status for the FY 2015-16 is "NR" than you are not liable to pay taxes on your foreign income. -Section 5 of Income Tax Act 1961 

2. You are require to file your Income tax return for your Indian Income only (Earned during the period 1st Apr - 2015 to 30th Ju-2015)  as per section 139 of Income Tax Act 1961.

3. No you are require to pay taxes on your Indian Income and file your Income tax return as per section 139 of IT act 1961.

4. For the Income earned and received outside India you can make remittance in your NRE Account in India. Remittance from one country to another country is not taxable in India.

 

Note :- If your Salary Income or any other Income is directely received in India without any remittance than the whole income will the taxed in India.

 

For any further assistance please feel free to call me during the business hrs at +91 965 431 2612.

Income earned in India will be taxable in India. Income from July onwards will be taxable outside India.

Millions of thanks all of you for such a great guidance and prompt revert.

 


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