Tax Implication on Salary earned out side India by Resident Indian as well as Interest earned on Fixed deposits - NRE

[PRIYAM KHAMBHATA]

Respected Sir

My client is employee of US based Company since long. He is doing Job in India (Work from Home) and earned Salary in USD, which is credited in US Bank Account. Subsequently, he has transferred the funds from US Bank account to NRE Bank Account operate in India for family maintenance. Further, he has also parked surplus funds in Fixed deposits - NRE and earned Interest on NRE Fixed deposit.

My Query is Whether, my client is to claim Exemption towards salary income earned in US dollar in US Bank Account, and also to claim Exemption towards interest income earned on fixed deposits (NRE) .

Please Guide me.

If possible share any circular or any case laws in favor or against for my knowledge.

AI Summary

Taxability of foreign salary and NRE fixed deposit interest for a resident Indian employee in India. Taxability of salary received by a resident Indian employee of a US-based company for work performed in India, where the salary is credited to a US bank account and later transferred to an NRE account in India for family maintenance. The issue also concerns whether interest earned on NRE fixed deposits qualifies for exemption in the hands of the resident taxpayer. The query seeks guidance on the exemption position for both the foreign-currency salary income and the NRE interest income, and requests supporting or adverse circulars and case law for reference.