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My friend and I have worked in a GCC country for the last year. We are from India. We both send our salary into a friends account in India and then transfer an amount to our own accounts.

Is it liable for taxation in India?

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    I don't know the answer to your question, but I think you're more likely to get one if you give it a more specific title. Almost every question on here could be called a "personal finance question". Maybe something like, "is money earned in another country and sent to India liable for taxes?" I think that's what your asking. – Jay Feb 3 '16 at 21:20
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    What does "gcc country" mean? – dg99 Feb 3 '16 at 22:40
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    GCC is Gulf Cooperation Council (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, UAE). – Michael Feb 3 '16 at 23:42
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Is it liable for taxation in India?

Taxation does not depend on whether to transfer money to India or keep it in GCC. It depends on your tax status. In a given Financial year; 1st April to 31st March, if you are outside of India for more than 182 days, your are Non-Resident Indian, NRI for tax purposes.

If you are NRI, income earned outside of India is not taxable in India [even if you transfer the funds to India]. If you are not an NRI, you income in GCC will be taxable in India [Even if you keep the money in GCC].

We both send our salary into a friends account in India and then transfer an amount to our own accounts

This is an incorrect practise, If you are NRI, you should not be holding a Savings account, it should be converted into NRO and you can if you want open an NRE account.
For your friend where you are transferring money, if there is an income tax audit, there would be quite a few questions asked and your friend has to establish and keep records that this is not GIFT, but more of a convenience agreement.

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