202015 Salary credit to pon cesident eteral rupee account not taxable - The Times of india cen | vow Sign In / Greate Account Your business deserves more. vaste SE eee Rens] India Business emt ite IRRLATED KEYWORDS: Toston | OversSularyneome | Oveseis | Noo eseat PINDAN ENPLOWEES Salary credit to non-resident external rupee account not taxable URNA KABLY. rnc sna MUMBA: Indian employees working overseas often fac iligaion over taxation of their overseas salary income, ifsuch salary is received in India This is because @ non-resident can be subjected to tax in India on that portion of the income which is recsivod in Tndi ‘he Income Tax Appellate Tribunal (FTAY) which adjudicates tax matters, n a recent decision, INDIA Jnas held that merely beeause the salary was credited by the Singapore-based emplayer company tothe employee's NRE bank account in Mumbai, it will not trigger a tax incidence in ia. The RERLT SREVELRY, TAT sought to distinguish betwoen income’ reecived in India and an ‘amount received in India ‘The ITAT reliod on earlier judicial pronouncements and held that salary income isa ‘compensation fr servies rendered by an employee. Thus, salary income in the hands of the non- resident employee cunnot be taxed in India, if the services are rendered outside India. The place crt Tl ‘of receipt ofthe appointment letter is immaterial NRE Savings Account T 4% interest Tax-Free & Repatrable, Highest Return NRE A/e. Apply Now! 0 Kkotak.com/NRE-Account Win Free Holiday* - FATCA Compliance Star FATCA Today with HubCheck, Foreign Account Tax Compliance Act. ICC Cricket World Cup 2015 ww hubeeck com/FATCA Hossever, the income tax authorities pointed out that the money was received in Indi, as the “ salary cheques were credited by Executive Ship Management Pte — the Singapore employer — to eee 7 A the NRE (non-resident external rupee) aecount maintained by the employee Arvind Singh (Chauhan with HSBC Bank in Mumbai. Tous, it should be taxable in India in his hands Ped es . ace WHOA eee tn nevarea avr ae | “ae ‘Couring oversea for classy campuses Torrid ala Saar ent serves 5 fendered ats nas tno nd we seminar on caret opons, overs ee ee! renter lle alableineeia Isla Stat akes In $1 millon per Tornoe esta Sry for servers Ressonable taxation, cas of doing bs ‘ended adatiendaistonbkn beonney NL ny Pruble Accounts Commits to ifr otperrnng uc servers sano ora < parot tea secedin ina cou ‘Sensex recovers 77 poms drven ty ove. eta nike asec ame xtenes prowethat canbe levedoriv inte Pte pul out around Re 17,000 in tnt ree sees reper ‘Under tax lai, the tax incidence is based on the concept f residence, which in turn depends on hnipurimesotinca insietmes.combusiness/nda-busnoss/Salary.credi10-nonesident-exteral-rypee-account-ottaxabllaticleshow/S0747E24ems?... 12202015 Salary credit to non tesident eteral rupee account not taxable - The Times of india Sin HaRREAR 8S torn negate some ‘wnat ae the Best Credit Cards {or an in Singsror? Pooja Kumar MMS video feakea? aay 12.2015 ‘Sudoop's Rahul Dravid connaction Talent shortage forces banks to drop pregnancy test for women sppticans pray. 2015 econ SPOTLIGHT Managing India's money Government has taken steps to propel growth: RBI's Rajan Rajan sai investor’ unnappiness over the taxation issues could have bean avoided but once raged, they have to go through 2 lagal process which ison + National Payments Corp gets REI nod for ‘the numberof days stayed in India. A tax resident of India is subject to tax on his global income, However, a non-resident is subject to tax in India only under two situations, one of them being, ‘that income received in India is taxable in India, In this case, the employee who was working om a ship plying on international routes was'a non-resident as he had spent less than 182 days in India uring the relevant financial years eating to the matter being heard by the TTAT. The ITAT rejected the contention ofthe tax department thatthe salary amount credited to the ‘bank acoount in India should be subject to tax. It observed that the employee had a lawful right to eesive the selary amount athe place of employment (wich isthe loeation ofthe foreign ‘employer outside India). The ITAT held: "The connotation of an income having been received and an amount having being received are qualitatively diferent. The salary ‘amount is received in India in this eas but the salary’ income’ i received outside India Gautam Nayak, pastner, CNK & Associates said, "The ITAT inthis order has highlighted a new aspect relating to income received in Indi, Tt has drawn a distinction by holding that salary income was not received in India as the employee had the lawful right to receive salary outside India. The salary amount was atthe employee's disposi outside India and he merely exereised Disright to transfer ito India." India, with 1.42 crore migrants, is among the leading exporters of manpower, acconding to latest UN statisti. lange chunk of them constitute blue-collar workers. The practice ofa salary ereit cither in ful or in part toa bank account in India is more common in ase of highly sled workers. “Employee agreements should be propery structured. If these agreements bring out the point ‘thatthe salary for services rendered overscas is being credited toa bank account in India, at the employee's request forthe sake of convenionce, this TTAT decision could help mitigate tigation” explains Nayak. ‘Stay updrtodon the go wth Temes offi Howe App Clk hrs to downlons for your device Promoted Stories More from The Times of India + Samsung explains how they made the + Marviage worked against Vide Bolan? #1 Galaxy 86 and Fage so perfect May 2015, Androauthorty + Acomplete brsikdawn of why the Galaxy» Darpan store opening in iyderabad 72 May ‘és display will biow your mind BGR ais + The Mos Overrated City in the World Is... + Saudi beheads Hoth persom this year 12 May ‘Yahoo Travel Irepations ais + }Misakes made with Car Insurance in” Aruna Shanbug case: Can Valmiki be tried Singapore GaBesr for minder? 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Reliable Maid for Expat Good in Housework , Great with Kids View Testimonials of Happy Clients hniputimesotinca insietimes.combusiness/ndia-busnoss/Salary.credl1o-nonesidert-exteral-rypee-account-nottaxablfatcleshow/S0747B24ems?... 2/12202015 china UnionPay top Salary credit to non tesident eteral rupee account rot taxable - The Times of india + RBI sees ‘contagion ris in LCs bank ‘ownership: SS Murra ww | ra Today Lost 7009 Last 0070 eB Praveen Gang a Pk w FEATURED ARTICLES Indiabewomesthird-argest — RBImayentrateseaslynextSpicele’slossisother smarket for Del years Rangarajan carries gin Recent Messages (31) i Ta Characters Remaining: 3000 ‘SIGN IN WITH FacebookTwterEmal OR PROCEED WITHOUT REGISTRATION x Sort By: Up Votes + Be the frst one to review. We have sent you a verification email To verity, just fllow the link in the message ‘Sanjay Agrawal +1 year ago In this whole argument what is being lost of is thatthe salary was credited into the ‘employee's Non-resident (external) account By definition, NRE account even though located physically in India isnot considered Teacted in India legally speaking. That's why it's called extemal account Hence, the whole argument that the salary amount was received in Inia is lawed in this Legally speaking it was received in an external to Indian terrtory) account. The question of ax would have arisen ifthe salary was deposited in a resident Indian account “Thanks and best regards, ‘Sanjay Agrawal ‘Singapore 60+ Reply + Flag Find this comment offensive? ‘Your reason has been submited o the Admin. Choose your reason below and cick on the ‘Subrnit button. This wil alert our moderators to take action Fou tangioge Dalaran uta corte Spam Report this! Close Flagged Chakravarthy Chebathini » 3026 1974 more points needed to reach next level. Know more aboul Times Points + Sanjay Agrawal » Tokyo, Japan * 1 year ago Not sure to what extent your statement is true as per law, butit makes lot of 00+ Reply « Flag Find this comment offensive? ‘Your raawoh has been submitted to the Admin, Choose your reason below and click on the Shibmit button, Ths will alert our moderators to take action Ruts ering Fowarnginae oe warthy f geist cetain community Seam olfyhatien Repgggbis ! Close atpstimesotita indetimes.com/business/nda-business/Salary-credltto-non resident external ypee-account not taxablefatcleshow/0747E24ems?... 32202015 Salary credit to non tesident eteral rupee account not taxable - The Times of india Freggites, photos Ran 8nd + 2243 2787 more points needed to reach next evel. Know more aboul Times videos Points « Sanjay Agrawal Vishwa 1 year ago ‘on _ NRE alc is always lacated in India, Its located outside India, there is not Timesofiqdetiomof being an Indian alc hence will nt be taxed, I can't understand why to eam IT has taxed this amount. Otherwise the whole of NRE remittance should have beenttaxed, why only this credit? 10 Neder: Flag Finding comment offensive? has been submited to the Admin, Choose your reason below and click on ti it button, This wil alert our moderators to take action 5 2 Irene agaist a eetaincomenunty Ouergntear omeragn Repprihissuasem Fleagdave! Feepiahornval- RanSug Sug «1 yer ago ee ec na nina pny but egal speskin tis onsideed {Werkhyian territory so that the amount in it is fully repatriable and is guided by Javon You Bateront abou Ttuling sts and tic wn sa reg cme offensive? ‘Younndeckentvonsebied othe Admin. Choose your reason below an ck on thetBdorat outer Ts lat or Moderatto tke ston secu Fearne" ereqeame i nate roan is close Fes Rc Te «Unknown + year 90 ‘Goodgrenveior NRI peopl. 40+ Reply Flag ‘Yourntgehi@itts been submitted to the Admin. Choose your reason below and click on the 9. This will alert our moderators to take action Flaggrseain ysiwafableeiown + 14682 10208 more points needed to reach next level. Know more MpaugetDout Times Points » Unknown = 1 year ago awa Sounds good ! Can the taxation aufnorties make i simple and understandable “Ting. to the common man? Isee these rules and regulations often contuses the dinary expayer and end up in either paying more than what’ due. Sometimes les id due to ignerance and end up in more complications 30 Flag ment offensive? ‘Wdusecggen has been submitted tothe Admin. Choose your reason below and cick on the jn. Ths wil alert our moderators to take action co Rawool + 2605 2395 more points needed to reach next level. Know more eaae bout Times Poin's = 1 year ago Aaeaedinaty a elit fr the indian working abroad,.saving them from double tax. ‘ate Reply = Fag ee aasfundthis Commont offensive? ‘liar Pas been subrated to tne Admin. Choose your reason below and cick onthe “This wl alert our moderators take acon hnipsmimesotinda inde mes. com/business/nda-business/Sala'y-credltto-non resident external ypee-account nt taxablefatcleshow/0747E24ems?... 4/12202015 Salary credit to pon cesident eteral rupee account rot taxable - The Times of india tama + 780 4210 mare points needed to reach next level. Know more about idiavcdminis «1 year ago kémazing news for us Merchant Navy officers, Though we stil try n maintain 182 days out of India (0+ Reply « Flag fpMbiy. - 608 4392 more points needed to reach next level. Know more about Times NG skosh « Unknown +1 year ago BIGOOd News for Shhippies !!! to the Admin, Choose your reason below and click on the kaki alert ur moderators to take action Bangalore «1 year ago 8BAPcople. Wnat about people working herein india sale Flog fide comment offensive? ps been submited tc the Admin. Choose your reason below and click on the 131 more points needed to reach next level. Know more about Times Points “year ago jhbaalabyrint of laxalion, reforms, judgments and beyond 20+ Reply “Flag Find this comment offensive? thas been submitted to the Admin. Choose your reason below and click on the imen + 6884 18306 more points needed to reach next level. Know more 188 Points « india +1 year ago ‘2 welcome decison, tax dept wilgotoany extent to harass and dthis willnow sstop > Reply «Flag hnipsmimesotinta indetimes.com/business/nda-business/Sala'y-credltto-non resident external ypee-account not taxablelatcleshow/0747E24ems?... 6/12202015 Salary credo pon tesident exteral rupee account rot taxable - The Times of india iment offensive? {bn has been submitted to the Admin. Choose your reason below and click on the ign. This will alert our moderators to take action lo 27189 222811 more points needed to reach next level. Know more about Times Points «Asia» 1 year ago inglell writen article! at 0 + Reply + Flag ind this comment offensive? hhas been submited to the Admin. Choose your reason below and click on the 200 wil alert ur moderators to take action {AA8 3662 more points needed to reach next level. Know more about Times oins » Kevin Guite « India * 1 year ago Thank you 00+ Reply - Flag edad this comment offensive? son has been submitted to the Admin. Choose your reason below and click on Points « New Delhi «1 year ago allent decision, common sense prevailed at the ena hnipsmimesotinta inde mes. com/business/nda-business/Salary- credit to-nonsesident- external ypee-account not taxablefatcleshow/0747E24ems?.... 62202015 Salary credo non tesident exteral rupee account rot taxable - The Times of india News for Shippies I! ~ NS 1.0 Reply - Flag Find this comment offensive? 'a8 been submitted to the Admin. Choose your reason below and click on the ‘This will alert our moderators t take action iFiga,ariaxation authorities make it simple and understandable tothe common hese rules and regulations oflen confuses the ordinary taxpayer ana end up in ig more than what's due. Sometimes less tax s paid due to ignorance and end complications, Flag pmmont offensive? hhas been submitted to the Admin. Choose your reason below and click on the Jon. This will alert our moderators to take action Moinis » Thomas « India « 1 year ago ‘Agree, Tax laws should be writen in a simpler language. ing 0+ Reply » Flag Find this comment offensive? on has been submitted to the Admin, Choose your reason below and click on ith ‘simple question. | myself work for a Singapore based company and at present din Guatemala, Central America. [have been living in Guatemala for past 3 “ompany pays me quarterly salary and itis deposited in my HOFC bank savings natasha income taxable ? Also Ihave Fixed deposits and Recurring gn the same HDFC account, wil the income from those deposits be taxable 77 the Admin. Choose your reason below and click on the “This wil alert our moderators to take action et c 2 aganst a coran communty fdas Spam aayednt Flyer ‘Siovotidg!346 more points needed to reach next level. Know more about Times Points © 1 Thomasyear ago nipstimesotia indetimes.com/business/nda-business/Salay.credltto-nonsesidert- external ypee-account not taxablefatcleshow/0747E24ems?.... 72202015 Salary credit to pon tesident eteral rupee account rot taxable - The Times of india nye waste a lot of ime in taxing poor salaried employee by bringing in new and er confusing regulations. Why not withdraw tax on salaried employees for 10 Bp: dReduce busines tax. Give a go to wealth tax. Bring in expenditure tax. A PBpwEentage atthe time of purchase on all purchases, heavy tax on ill conceivable hiélrsertertainment and what is not necessary for reasonable good living (Uxury Bes and housing, expansive overseas travel) wil be beneficial to all inthe long run, 1ed surplus can be ploughed back in local businesses at cheaper cast creating en visavis consumption. Help savings potential. Expand micro financing in a bigger way. We all hear taxes simply dont go away and they are as certain tig.com ymont offensive? hhas been submitted to tne Admin. Choose your reason below and click on the Kal diam» 2553 2447 more points needed to reach next level. Know more about Jimes Poinls + Unknown + 1 year ago (Good for NRI millionares.. they can now be billonares 8.0 > Reply - Flag Bind this comment offensive? ti a.com CA gMave + 1 year ago it lag not fal under the category of Sec.6(1) and sec.6(6). ne should ne m to pay tax in India as per his residential status. Flag yrumont offensive? has been submited to the Admin. Choose your reason below and click on the n. This will alert our moderators to take action f 3662 more points needed to reach next level. Know more about Times. Points » CA Vyom Dave + India + 1 year ago 'Yes. Ligation arises because even i @ person is non resident under section 8(1), he could be taxed in India ifincome is received or accrues in India or is deemed ta be received or accurred in India. Many lax treaties provide ut simpler tax laws as pointed by you would help. Itis nice to get a comment hanks for your mputs. ply - Flag Yomment offensive? 1 has been submitted to the Admin, Choose your reason below and click on button, This will alert our moderators to take action cnn very well researched article or casell Check the income tax laws, under SAIS" section 6, what quantifies as a NRI. The exemption of 183 days Is not for TLegarsonnel on foreign flag ships, but for Indian Seafarers leaving on Indian ships. FEMA\givbfT treat resicent status dfferenty. For one to be NRI under IT laws, 360 day rule in paRWé¥RbS applies, plus no more than 60 days in Incia in the present financial year! aipsmimesotia indetimes.com/business/nda-business/Sala'y.credltto-non resident external ypee-account not taxablefartcleshow/0747E24ems?... 8/2202015 Salary credit to non tesident eteral rupee account not taxable - The Times of india ©. NicRtaply» Flag Fid@atiercomment offensive? 11338 3662 more points needed to reach next level. Know more about Times ofingiatcorkapil d + India 1 year ago “Thank you Tor responding to the article. Itis always much appreciated Let me clarity age __ There are two limbs to determining residency in India under the Income tax ection 6(1)(a) refers to a stay of 182 days of less in a FY to make a person a non- "@R under section 6(1)(c) a person can be a non resident ifthe aggregate slay 12 previous four years is of 365 days or less and in that particular year is 60 days nation to this section which is mentioned by you wherein the period of 60 nded to 182 days for an Indian sea farer applies only to section 8(1)(0)] Bi") (2) continues to stand and is applicable in all instances. In this case, the ly held thatthe laxpayer had met tne criteria of section 6(1)(a) a he had spent 182 days in India he was a non resident for tax purposes. ndiasbeen submited to the Admin. Choose your reason below and click on ‘utton, Ths will alert our moderators to take action }338 3662 more points needed to reach next level. Know more about Times 3 Points kapild + India» 1 year ago Kindly refer to section 6(1)(a) of the Act, which 's applicable inthe instant case W6rkorand has been referred to by the tribunal. You are refering to the explanation 196(1)(a) which applies only in respect ofthe financial year in which the taxpayer ipl 10r the purpose of employment this contains the illustration of a sea farer of nip). However. inthis case it was section 6(1)(a) which applied. You may also idual is said to be rosident in India in any previous year, if he- Fin that year fora period or periods amounting in alto one hundred and ys or more; OR (Comment: THE ITAT REFERRED TO THIS CLAUSE) ingn-2978 four years preceding that year been in India for a period or periods inal to three hundred and sixy-fve days or more, isin India fora period or junling in allo sixty days or more in that year, In the case of an indwvidual,- ‘zen of India, who leaves India in any previous year [as a member of the Indian ship as defined in clause (18) of section 3 of the Merchant Shipping #444 of 1958), or] for the purposes of employment outside India, te provisions 2 (c) shall apply in relation to that year as if for the words “sixty days", leein, the words ‘one hundred and eight-wo days” had been substituted JOT REFERRED TO BY THE ITAT AS IT APPLIES ONLY IN RESPECT OF IN WHICH A PERSON |S LEAVING INDIA FOR THE PURPOSE OF NP) Flag bmment offensive? 397 has been submitted to the Admin. Choose your reason below and click on ‘lon, This will alert our moderators to take action Jayant Of year ago ‘So abuwanetindienam Navy Officers & crew stil have to complete more than 183 days ‘Outs india? If they fail fo do so will the credit in NRE ale wil be taxable? haipsmimesotinta indetimes.com/business/nda-business/Salary.credlto-nonsesidert- external ypee-account nt taxablefatcleshow/0747E24ems?... 92202015 Salary credo non tesident exteral rupee account not taxable - The Times of india ogg Flag Fini ment offensive? ‘YoUResres has been submited o tne Admin. Choose your reason below and lk on the Sconfaiton Ts wi let our moderator fo ake acon Soccmtees oeantiiet econ en Or oa Sen fessor ing new Jaw should think about seafarers those are not able to get more then Jafemoloyment ina financial year or they get job in one year and other year he fepfiing is seafarers snould nat be taxed forthe salary received at sea let tbe | grWorld wide service. aPig.com smmont offensive? in has been submitted to the Admin. Choose your reason below and click on the n. This will alert our moderators to take action 1022 3878 more points needed to reach next level. Know more about Times ints + USA» 1 year ago I.NRI is Govt of India pensioner and receives pension amount in India in his WRRRE account, what is tax implication in India’, 000+ Reply “Flag Bebmmont offensive? hhas been submitted to the Admin. Choose your reason below and click on the This will alert our moderators to take action jam + 3325 1675 more points needed to reach next evel. Know more about against cotan communty spam Lovel 4 Rarpagige’na Mudull + 642 4488 more points needed to reach next level, Know more about ‘as tedefimes Points» India +1 year ago people Very dood news Frogupat 0.0 Reply Flag 'dFind this comment offensive? ‘Yourigaison has been submited a the Admin. Choose your reason below and click on the Sun iBbis will alert our moderators to take action an waiinssatinaia.com atpsmimesotinda indetimes.com/business/nda-business/Salary-credlto-non resident external ypee-account nt taxablefatcleshow/0747624ems.... 10/12202015 Salary credo pon tesident exteral rupee account not taxable - The Times of india THE TIMES OF INDIA “1 sige rem tuicantcovarceensneroy Perey Fees Secon feet Terenty [va oer rake cre ack ra | We og pericope AABS Tm Heino] Lape Sina ec s1S| eel sie ov [oR] Tomer | Roe cone ‘aoa ates [vote sgn [acs [ ee ene Ty coe Maat Now Indsnas [neers ro 2 | ec mare nant ‘ideos on Timesofndia.com ‘tive Naws Frotivegt 2 ishna Bdyssofindia.com Earged con ied ‘Well Connected hatpstimesotita inde mes. com/business/inda-business/Salary-credltto-non resident external ypee-account nt taxablefatcleshow/0747E24ems.... 112202015 Salary credit to non tesident eteral rupee account not taxable - The Times of india Member hnipurimesotinda insetimes.combusiress/ndla-businoss/Salary.credi10-nonesident-exteral-rypee- account not taxabllatcleshow/0747E24ems.... 12/12