I came to UAE on work visa on 19th September. Will work here for 1 year. Will the income earned in UAE be taxable in India? If I plan to visit India in this duration, how many days do I have for buffer to complete my 184 days outside India. Also I was in Indonesia for 1 month in July on tourist visa. Will that duration be also counted in 184 days?
As per the Income Tax Act,
If any person goes out of India for employment purposes,
An individual will be treated as a Resident in India in any previous year if he/she is in India for at least 182 days in that year.
An individual who does not satisfy the condition will be treated as “non-resident” in that previous year.
Since your stay in India is less than 182 days, you will be an NRI for the FY 2017-18.
However, you shall be liable to file the Income Tax Returns for FY 2017-18.
For how many days can I come back to India in this duration?
Currently, your stay comes upto 140 days (excluding entire July month). You should plan your future visits to India for less than 40 more days.
So if I plan a visit to India for less than 40 days, will my income that I have earned in UAE from October 2017 to march 2018 be taxable in India?
No. Such income as earned in UAE shall not be taxed in India as per the India UAE DTAA as you are not a resident of India in this Financial Year.
Since your stay in India is less than 182 days, you will be an NRI for the FY 2017-18.
Please feel free to call/ revert in case you need additional clarity/ guidance.
Thanks and regards
Abhishek Dugar
CA CS B.Com
Hi,
Since you have left India for the purpose of employment, then you will be considered to be a resident of India if you were in India for less than 182 days (i.e. 181 days or less) in that financial year.
Assuming you left India on 18 September 2017, you can come to India for only 10 days in this financial year. You were in India from 1 April till 18 September, i.e. for 171 days. Hence to be below the threshold limit of 182 days, you can come to India for only 10 days.
The law does not specifically about considering the days you were in Indonesia. You can include it, but the Assessing Officer will dispute it.
Regards,
Keerthiga Padmanabhan
M.Com., CA, LL.B
Hi,
Yes. Your stay in Indonesia will also be counted. To determine your residential Status, your stay in India will only be counted (Including the days of departure from and arrival in India)
As on 19th September, you have completed 172 days in the FY. So, in case you are planning to come back to India before March 2018, ensure your stay including days of arrival and departure doesn't exceed 10 days
