23 June 2022 12:43

My salary from Dubai to India in INR ; taxable or not

However a Resident & Ordinarily Resident having stayed less than 183 days up in a financial year has to pay tax on both foreign and Indian income. Therefore any income earned in Dubai will be taxable in India if the stay period in Dubai is less than 183 days during the financial year.

Do I have to pay tax in India if I earn in Dubai?

Salary income earned by you in the UAE would be treated as income accruing or arising outside and consequently would not be taxable in India, if your status is non-resident.

Do you need to pay tax in India for salary received abroad?

The foreign income i.e. income accruing or arising outside India in any financial year is liable to income-tax in that year even if it is not received or brought into India. There is no escape from liability to income-tax even if the remittance of income is restricted by the foreign country.

Is money earned in Dubai taxable?

There is no income tax on salaries or wages paid in the UAE . Depending on the Emirate, there may be taxes on some services and goods, municipal taxes and customs duties.

How much foreign income is tax free in India?

You have to treat this income as any other income which is earned by you locally. Minimum exemption of Rs 2,50,000 is allowed on your total income and the remaining income is taxable as per income tax slab rates.

Is income from UAE taxable in India?

Accordingly, as a resident and ordinary resident in India, you would be taxable in India on your global income, which would include the salary received by you in India from the UAE-based employer.

Do I have to pay tax if I receive money from abroad?

In general, yes—Americans must pay U.S. taxes on foreign income. The U.S. is one of only two countries in the world where taxes are based on citizenship, not place of residency. If you’re considered a U.S. citizen or U.S. permanent resident, you pay income tax regardless where the income was earned.

What happens if you don’t declare foreign income in India?

Wilful failure to declare information relating to foreign income and assets in the return of income may lead to prosecution with punishment of rigorous imprisonment of up to seven years. Black Money has always been a point of concern for India and the government has been trying to deal with it for ages.

How much foreign income is tax free?

$108,700

The Foreign Earned Income Exclusion (FEIE, using IRS Form 2555) allows you to exclude a certain amount of your FOREIGN EARNED income from US tax. For tax year 2021 (filing in 2022) the exclusion amount is $108,700.

Do I need to pay tax if I send money to India?

When you send money from US to India, the relationship between the sender and receiver is not important. The maximum tax-free amount you can send in a year is $14,000. Up to $14,000, no tax is charged. Beyond that amount, it would be subject to gift tax for the sender.

Do NRI pay tax in India?

Although income earned abroad is not taxable in India, NRIs have to pay tax in India on capital gains from shares, mutual funds, term deposits, property rentals, if it exceeds the basic exemption limit. Taxation in India is a crucial element for the economy of the nation.

How do I report foreign income in India?

Tax on foreign income of resident Indians
After the income is converted, list it under the relevant head of income. So, if you have earned an income from property held in a foreign country, list the income under the head ‘Income from house property’.

Do NRI declare foreign income?

Do NRIs have to declare foreign assets? No, NRIs are not required to disclose their foreign assets and foreign account details. However, in case of NRI income tax, you must furnish information about the foreign accounts to claim a refund of taxes if you don’t have an NRI account.

Which income of NRI is taxable in India?

Rules to determine residential status of NRIs
The Finance Act 2020 reduced this period to 120 days in cases where the total taxable Indian income (i.e., income accruing in India) of such visiting individuals during the financial year is more than Rs 15 lakhs.

Should NRI file tax returns in India?

Like any other individual taxpayer, a Non-Resident Indian (NRI) is required to file his return of income in India if his gross total income received in India exceeds Rs 2.5 lakh for any given financial year.

Do NRE accounts need to pay tax?

An NRE account is tax-free (no income tax, wealth tax, or gift tax) in India.

What is the tax exemption limit for NRI?

In the Union Budget 2021 announced by the Finance Minister Nirmala Sitharaman on , the tax audit limit for NRIs (Non-Resident Indians) was increased to Rs. 10 crore from the current Rs. 5 crores. NRIs will also be spared from double taxation.

How can NRI save tax in India?

NRIs have many sources of income that are exempt from Income Tax altogether. These are: Interest earned on Foreign Currency Non-Resident (Bank) [FCNR(B)] Deposits and Non-Resident Non-Repatriable [NRNR]. Interest on notified bonds and savings certificates issued by the Government of India.