Ask Harsh Roongta anything on Personal Finance.
I was an Indian resident till 15th May of this year. Till the last year, I was filing my income tax returns in India. I have been working in the UAE from 16th May 2016 in a construction company and earning salary income. My wife and mother are in India, and I transfer the money for their living expenses through my NRE a/c or through saving a/c of my wife and mother. My query is, am I liable to pay any tax in India for the salary income I earn in the UAE or for the money that I transfer money to my wife and mother? Also, am I liable to file income tax returns in India from the fiscal year 2017 onwards? Kindly note that I do not earn another income in India.
– Ryan Shetty
Assuming that you will spend less than 182 days in India during the financial year ended March 31, 2017, you will be treated as a non-resident for 2016-17. Your salary earned overseas will not be taxable in India. Just take care that you receive the employer’s salary in the UAE itself, either in cash or in a bank account in the UAE. You can then remit it to your own NRE account in India or directly to your wife’s or your mother’s accounts in India. It would help if you never asked your employer to remit the money directly to your NRE account in India, as that may render the salary taxable in India because it is “received in India.” You will not need to file tax returns in India for the financial year ending March 31, 2017, unless India’s income (including the income earned from April 1, 2016, until May 15, 2016) exceeds Rs 2.50 lakh.
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