Taxability of income

If person is working in Shrilanka and getting the income from india with tds deduction & also gets the income in shrilanka without any tax deduction, then how much income is taxable in india?

 

Replies (2)

It depends on the residential status of the tax payer. if he ordinary resident of india then the income earned by him will taxable irrespective of country. However he is not resident india then the amount earned in india is taxable and amount earned other than india is not taxable.

 

 

 

For the purposes of this Act, - (1) An individual is said to be resident in India in any previous year, if he - 

 

(a) Is in India in that year for a period or periods amounting in all to one hundred and eighty-two days or more; or

 

(b) Having within the four years preceding that year been in India for a period or periods amounting in all to three hundred and sixty-five days or more, is in India for a period or periods amounting in all to sixty days or more in that year.

 

If the Person satisfy any of the above conditions ,then either he/she will be said to be a "not ordinarily resident"  or "ordinarily resident" 

 

Given below is the criteria for "not ordinarily resident" .

 

 A person is said to be "not ordinarily resident" in India in any previous year if such person is - (a) An individual who has not been resident in India in nine out of the ten previous years preceding that year, or has not during the seven previous years preceding that year been in India for a period of, or periods amounting in all to, seven hundred and thirty days or more.

and if he /she satisfy both the conditions then he/she will be said to be 

"ordinarily resident".

 

If the status of the personn is N.R,then the amount earned by him/her in or from INDIA is only "TAXABLE".

 

If the status of the person is Resident,irrespective of the amount earned from anywhere,will going to be"TAXABLE".

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