Tax Implication on Income earned by RNOR

[PRIYAM KHAMBHATA]

Dear Sir

My client is Citizen of USA, he came back in India in June 2024, His Residential status is becoming Resident But Not Ordinary Resident. He has employed in Indian Company and earned Rs.1.0 Cr. for the year FY 2025-26. He is also earned Salary in USD 10000 from a Unit of Indian Company in USA. This USD is credited in US Bank Account. Such Unit of Indian Co. at USA is deducted federal tax on USD salary income.

My question is that would he include Salary Income in USD 10000 in his total income for taxation in India and claim of Foreign Tax credit (FTC).

Please advice.

Thanks

AI Summary

Taxation of foreign salary: include in RNOR's taxable income if received or payable in India; credit allowed if taxed abroad. Inclusion of foreign salary in an RNOR's taxable income turns on source and receipt: salary for services rendered in India or received in India is taxable and must be included; salary for services rendered and received wholly abroad, credited abroad, is generally not taxable. If foreign salary is taxable in India, foreign tax paid may be claimed as a foreign tax credit subject to documentation, matching of income, and applicable relief mechanisms.