COMMENT

India Taxpayer - India's Independent grassroots movement for better services and lower taxes

+91 422 254 0710

India Tax Payer, No.81, West Venkatasamy Road,R S Puram, Coimbatore - 641 002,Tamilnadu.

Non-resident expats’ salary paid in India won’t face tax

The Authority of Advance Rulings (AAR) has held that the salary income of a nonresident individual for services rendered overseas cannot be taxed in India, even when such salary is paid into a bank account in India. It is not the country of origin, but the number of days’ stay in India, which determine whether a person will be a resident or non-resident for tax purposes. Unlike a tribunal or court order, a ruling by AAR, a quasi-judicial body, does not set a precedent. But it does have persuasive value and is well-considered. Thus, the ruling may benefit expat workers, in particular the over one lakh Indian workers who work in the US, largely on H1B visas.

We'd love to hear from you!