Tax on money transfered from abroad by Work Permit Holders

Hi,

I worked in Hong Kong for 2 months on work permit, and had accumulated an income in HKD, since it was for only 2 months, so no tax was applicable.

I had asked the tax consultants in my company(Infosys) and they said that I do not need to pay any tax in india even when I transfer it to india, since the income is overseas and tax is paid overseas.

But some CA say that I need to pay tax in india for the income incurred and transfered. I have a NRI bank ac, to which i transfered the money in India

 

Replies (3)

No Nitin

In my opinion you dont have to pay tax in india for the income earned outside India. As per the chapter Scope of Income Income earned and recieved outside India is not taxable in India even if it is transferred in India.

Originally posted by :asif khan
" No Nitin
In my opinion you dont have to pay tax in india for the income earned outside India. As per the chapter Scope of Income Income earned and recieved outside India is not taxable in India even if it is transferred in India.
"

 

Do I need to give the details of the amount transfered to India as non taxable income in my returns.

Your tax liability will depend on your residential status.

Had you been abroad only for 2 months? Have you come back to India after that?

If you are in india for not more than 182 days in a financial years, and goes abroad to take any employment with the intention not to come back in near future, you get the status of NRI and all your income received abroad but later transferred to India are exempt from tax.

If you have been there only for 2 months and rest of the time you were in india, you will be resident for all practical purposes and all your income whether india or abraod are taxable in india.

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