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 since 16 May 2016 in a construction company, earning a salary. My wife and mother are in India, and I transfer the money for their living expenses through my NRE a/c or through the savings a/c of my wife and mother. My query is, am I liable to pay any tax in India for my salary in the UAE or for the money I transfer to my wife and mother? Also, can I 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 ending 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 ensure you receive the employer’s salary in the UAE, either in cash or in a bank account. You can then remit it to your own NRE account in India or 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 revenue earned from April 1, 2016, until May 15, 2016) exceeds Rs 2.50 lakh.
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