Foreign income earned and converted in different FY

[Shikha Mahawar]

Dear Sir/Madam,

I have a query related to taxation on foreign income if earned and converted in two different FY.

If an individual has been out of India for employment purpose for 187 days in a FY, the status of individual turns to NRI. The salary income earned by that individual for that FY becomes exempt from tax.

But what if the individual carries some amount of salary received in foreign currency itself and do not convert to INR and converts the same in INR in next FY when the individual status will be Resident.

Will that foreign currency converted to INR in next FY becomes taxable in that FY although the income earned outside India when the individual was NRI.

Thanks,

Shikha Mahawar

AI Summary

Is foreign income earned as an NRI taxable when converted to INR after status changes to Resident in the next fiscal year? An individual inquires about the tax implications of foreign income earned while classified as a Non-Resident Indian (NRI) and converted to Indian Rupees (INR) in a subsequent fiscal year when their status changes to Resident. The individual was employed abroad for 187 days, qualifying as an NRI, and thus exempt from tax on the foreign salary for that fiscal year. The question is whether the income, converted to INR in the next fiscal year, becomes taxable despite being earned when the individual was an NRI.