Q. TAX LIABILITY FOR A NRI HAVING SALARY INCOME FROM SINGAPORE WITHOUT TDS IN INDIAN CURRENCY IN NRO ACCOUNT

Question

Dear Sir,

A person is having salary income from Singapore based employer in Indian currency in NRO bank account. She was resident of India till fy 21-22. However, she got married to a person based at Sweden and settled there currently, however she came to India for 46 days only during fy 22-23 (till date and no plan to come again till 31/03/2023) and she is providing her services to the employer in fy 22-23 mostly from Sweden.

Please advice about income tax liability of her at India for salary income coming to Indian NRO account.

Regards,

Pankaj Minocha

Answer 1

If the salary is received in the Indian bank account directly, then the income is received in India making that taxable in India, as per income tax act. However benefit under DTE can be taken to not make the same taxable in India.

Answer 2

What is being received in India is the amount  due in singapore and not the salary. Salary once due in singapore and then what is being transferred is not the income but the amount due and hence not taxable in India.

However, there are contrary judgement on this.

Further, generally, salary are taxable in sourced state that is where the services are rendered as per DTAA.

Further, salary are not taxed on receipts basis as per section 15 of Income Tax Act