I am staying out of India since from 22 Jan 2014 to till now in Ethiopia and now in Rwanda. Between this period I went India for 6 days. I am getting salary (INR) from Dubai based company in my Indian ICICI saving account . Please advise whether my salary is taxable or not ?
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Taxable by which country?– JohnFx ♦Mar 27, 2015 at 13:17
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Taxable by India. @JohnFx– HemangJul 13, 2017 at 7:26
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It seems that this guy asked this question and never returned back to see any of these answers posted here. But it must be helping so many people who have landed here.– HemangJul 13, 2017 at 7:27
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3 Answers
For the financial year 1 April 2013 to 31 March 2014, you would be treated as resident Indian for tax purposes. The income you have earned from 22 Jan 2014 till 31 March 2014 is taxable in India.
For the financial year 1 April 2014 to 31 March 2015, you would be treated as Non-Resident Indian for tax purposes. The income you have earned is not taxable in India.
On a different note, the credit you are getting in your ICICI Bank account, make sure its an NOR/NRE account. An NRI cannot hold an ordinary savings account in India.
Irrespective of where you are working and for what company, if you are an Indian citizen, you are liable to pay taxes for all income you receive.
The income earned by a person is subject to tax under the IT ACT of 1961. Under this, incidence of tax on a tax payer depends on his residential status and also on the place of accrual or receipt of income.
It is possible that applicable taxes are already deducted from your salary before it is deposited into your ICICI bank account and thus may not be taxable, but then it entirely depends on your residence status.
Form the dates you mentioned it seems like you are a Non-Resident Indian as the IT ACT says
Non-resident Indian (NRI)
Strictly speaking, the term non-resident refers only to the tax status of a person who, as per section 6 of the Income-tax Act of 1961, has not resided in India for a specified period for the purposes of the Income Tax Act. The rates of income tax are different for persons who are "resident in India" and for NRIs. For the purposes of the Income Tax Act, "residence in India" requires stay in India of at least 182 days in a calendar year or 365 days spread out over four consecutive years. According to the act, any Indian citizen who does not meet the criteria as a "resident of India" is a non-resident of India and is treated as NRI for paying income tax.
Source : WikiPedia
So, while its safe to assume that you are an NRI and the income you receive from sources outside India in non-taxable, please be advised that the interest you receive for this money in your savings account is taxable.
Disclosure : I am not a Tax Professional / CA / CPA. You should seek professional advice on this.
answered Mar 27, 2015 at 13:30
Late entry but Yes, the salary you're getting is 100% taxable. As your Dubai-based company is credited this salary to your Indian account. If you have an account in UAE itself and transferring from your UAE account to Indian account then it's not taxable as you're a resident of UAE and currently living and earning outside India. But in this case, you can convert your Indian account to NRE or NRO account to have tax free interests on your fixed deposits.
