Tax on Income Earned Abroad?

Dear All,

Could someone please tell me, what is the provision for taxing an Indian citizen for his income earned outside India. For example, if a person is employed in New Zealand, and he earns Rs.20 lacs per year in New Zealand currency, what would be his tax liability is he decides to send the entire Rs. 20 lac to his bank account held in India?

 

Additionally, what would be the case if the same person is working in a tax-free country, like Saudi Arabia, UAE, etc.?

 

Thanks.

Replies (3)

First you have to find out his residential status.

 

As he is working in other country then only one condition of 182 days or more will apply. He does not satisfy this condition so he will be non resident.

 

Now he is just transfering the amount in India. The amount neither accrued in India nor received so it will not be taxable in India.

IF THE PERSON EMPLOYED IN NEW ZEALAND IS A INDIAN CITIZEN(ORDINARY RESIDENT ) THEN HIS INDIAN AS WELL AS FOREIGN INCOME WOULD BE TAXABLE IN INDIA .

BUT IF HE IS A FOREIGN CITIZEN(NON RESIDENT) THEN THE AMOUNT WONT BE TAXABLE BECAUSE AS PER THE INCOME TAX ACT WE LEVY TAX ONLY IF THE AMOUNT WAS RECIEVED IN INDIA BUT IF THE AMOUNT WAS REMITTED TO INDIA THEN IT WON'T BE TAXABLE (RECIEPT V/S REMITTANCE) 

Dear Prateek,

 

In case of Indian Citizen who is out of India for employment then we consider only one consition out of 2 basic conditions. The condition is "whether a person is in India for 182 days or more. As he will be employed in New Zealand then its obvious that he will not be in India for that duration. Hence, he will be non resident (I have consider his employment tenure in New Zealand more than 6 months) . As he is just remmitting the amount in India so he will not be taxed in India.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 01 September 2026
Articles

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Foundation

View Details
Company
19 August 2026
PAID ARTCILE ASSISTANT

My Legal Tax Consultants Pvt. Ltd.

Noida

CA Inter

View Details
Company
28 August 2026
Assistant Manager

NRS AND ASSOCIATES

Kozhikode

CA Inter

View Details
Company
11 August 2026
Manager / Senior Manager - Statutory Audit

CommerceCareer

New Delhi

CA

View Details
Company
ARTICLESHIP 29 August 2026
Article Assistant

RRPM & ASSOCIATES LLP

Chennai

CA Inter

View Details
Company
Featured 19 August 2026
Chartered Accountant

apricus india

Pune

CA

View Details
Company
14 August 2026
Article Assistant CA Articleship

Eshwar & Co Chartered Accountants - Nungambakkam

Chennai

CA Inter

View Details
Company
ARTICLESHIP 26 August 2026
Article Assistant

ANIVESH CONSULTANTS LLP

Gurgaon

CA Inter

View Details