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I am India Origin and recently got Residence Visa of Dubai.
My company is in Dubai and credit my monthly salary in Dubai account in AED currency. However I stay in India only and working from India (my travel is hardly 1 month per year outside India).

QUERIES :-
Being Non-NRI I need to pay tax in India, I need your help to save tax.
1. How much tax I need to pay ?
2. How I can save on tax in India ?

1

How much tax I need to pay ?

As you are "Resident Indian" for tax purposes, You would need to pay taxes as per tax bracket. This is similar to as if you were earning in India. Note you need to pay taxes in Advance every quarter. You would have to file returns accordingly.

How I can save on tax in India ?

The work you doing would be more like freelancing. Compared to a salaried individual, Certain exemptions will not be available [Food Vouchers, Petrol Allowances]. However you can still get 80C and other exemptions. You can deduct some of the expenses for example if you purchase a laptop / equipment to help your work, or phone bills etc. Consult a CA who can guide you.

Edit:
Taxation does not distinguish whether you transfer the money to India or keep in UAE. Or whether the money is paid in India or outside India. It depends on residency and where the income is deemed accrued. As much as I see you would be deemed that the income is accrued to you in India. There is some relief under Dual Tax Avoidance Agreement, filter on UAE. Please consult with CA who is familiar with such issues.

  • Thanks Dheer for the quick response. I am full time permanent salaried employee of Dubai company. Do I need to pay tax only on amount which I am going to transfer to India from Dubai [OR] I need to pay tax on salary offered by my employer ? – user48305 Sep 8 '16 at 12:45
  • Thanks Dheer. pretty much impressed with the quick responses and support. – user48305 Sep 8 '16 at 18:01

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