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Tax on foreign income

Tax queries 411 views 3 replies

I'm in Nigeria with the local Nigerian Employer from 24.11.2012 whereas my family is staying back at Kolkata. I'm getting two part salary - one is locally paid in local currency Naira to meet up my local expenses and other in USD which is directly being remitted to my Indian Account (normal savings account) and being used by my family. Till date I visited my family only once in the period from 08.03.2014 to 10.04.2014.

My questions are:

1. What is my NRI status?

2. What is my tax liablity although I've paid some advance taxes without knowing anything?

Replies (3)

There are three types of Residential Status

1. Ordinary Resident (OR)

2. Resident but not ordinary (NOR)

3. Non Resident (NR)

As per the fact given, You are NR.

To tax your income one of the following conditions must be fulfilled

1) Income accrure /arises or deemed to be accrue / arises  in India or

2) Income received or deemed to be received in India

First Part Income :- Both the above conditions are not fullfilled,so not taxable in India

Second Part Income :- Second Condition ( as income received in India) is fullfilled , So this part of income is taxable.

Note:- If you have paid some Advance Tax, then You can take the deductions of that advance tax paid from tax liability.

 

But as such the salary received in foreign currency, not in Indian currency, how much tax liablity will be there? And what the tax calculations will be?

Currency is not relevant for taxability. what the relevant is that where you received the salary ultimately. if you received in India then it will be taxable in india at normal slab rate

Suppose your age is less than 60 Years

upto INR 200000 - Nil

more than INR 200000 but upto 500000 - 10%

more than INR 500000 but upto 1000000 - 20%

more than  INR 1000000 - 30%

Note:- Education Cess shall be levied @ 3%. If your income is more than one Crore then Sucharge shall also be levied....


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