Tax query

Others 986 views 2 replies

Srinivas

Finance Manager

113 Points Posted on 13 January 2011

Hi,

I am an NRI working in a Gulf Coutry for the past 12 years as FC (Financial Controller). This Apr'11 end I will be returning to India after resigning, to take up my penidng Gr-I (Final) exam in Nov'11. I wil be receiving about Rs.12 lacks as end of service benefits. I would like to know if this amount will be taxable for the AY. 2012-13 as I would have stayed in India fore more than 60 continuous days in the previous year 2011-12? If so how can I avoid the tax? is any speicific invesment is possible to avoid taxation? Kindly advise. If I leave India in Nov'11 on emplyment, will there be any change in my residential status? Kindly advise.

Thanks & regards,

Srini

Replies (2)

Rajeev Kumar singh

Article

36 Points Posted on 13 January 2011

You are a non resident and the Condition of more than 60 days applicable when u are in India for more than 60 days in previous relevant year and u also in india for 365days in previous 4 years immiediately preceeding relevant previous year both the condition should be satisfied than u will became resident.

The income u get from ur sevice is taxable if u receive that money in India.For Futher details u can read section6(1) and section 9 of income tax act 1961 of India . Thax

CA MAULIK

C.A

937 Points Posted on 13 January 2011

It seems dat u r not going to get ur money in india..so que of taxability does not arise also what ever cash u got ang brindgto indiaon arrival and if ur intention is to return PERMANENTLY to india ,,,then wealth tax is NOT applicable to u...also whatever assets u will purchase are also taxfree from wealth tax.....for the next 7 valuation date....