Tax on NRI returning to India

[Rajah Gopal]

I have returned from abroad and have stayed for more that 182 day in India between 1st April 2018 to 31st March 2019 (so technically a resident).

Need to know if my salary earned abroad during this FY 2018-19 is taxable in India during this FY 2018-19 ? I did transfer from abroad about 10 lakhs to an NRE account in India during this time.

Please provide some guidance

[CASeetharaman KC]

When you become a Resident Taxpayer the income earned from all sources is taxable and therefore the salary earned by you abroad would also be taxable. The provisions of DTAA i.e. whether the country you worked in has a Double Taxation Avoidance Agreement with India to be checked and the tax deducted at source ( normally known as Withholding Tax) to be claimed as deduction when filing returns. Transfers to NRE Account would normally not come under the purview if taxation.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Sri Seetharaman.

AI Summary

Taxability of foreign salary: resident status makes overseas earnings taxable, seek relief under DTAA and foreign tax credit. Salary earned abroad by a person who becomes a Resident Taxpayer is taxable in India for that fiscal year; the taxpayer should examine any applicable Double Taxation Avoidance Agreement and claim foreign tax credit for tax deducted at source. Transfers into an NRE account do not themselves constitute the taxable event for that salary.