Your Queries: Stayed abroad for 182 days or more? Then no tax on overseas income

October 13, 2020 1:41 AM

Only a resident is taxed for his global income in India. An individual shall be deemed to be resident in India during a financial year if he stays in India during that year for 182 days or more.

Salary income earned abroad shall not be taxed.The gain/ loss from capital gain should have been reported.

By Chirag Nangia

I had gone to the Gulf for a year where there was no tax, but had to come back because I lost my job. Do I have to pay tax in India for my overseas income?
—Sachin Nair
Only a resident is taxed for his global income in India. An individual shall be deemed to be resident in India during a financial year if he stays in India during that year for 182 days or more. Therefore, if you were outside India for 182 days or more during the relevant financial year then you shall be classified as a non-resident and shall only be liable to pay tax on income which accrued/ arose/ was received in India. Salary income earned abroad shall not be taxed.

However, if your stay abroad is less than 182 days, then your entire income, including income earned abroad shall be taxed in India. Double taxation relief may be available in the form of credit or exemp-tion, as per the DTAA with that country.

My interest income is less than Rs 3 lakh but when gain on short term sale of shares is added it is more than `3 lakh per year. Will I get exemption up to Rs 3 lakh and the excess income over Rs 3 lakh will be taxed as per slab rate? I do not have any salary income. Which ITR form should I fill?
—Ashok Kumar Das
The requirement of filing ITR arises if total income from all sources exceeds the maximum amount not chargeable to tax (that is Rs 3 lakh in the case of senior citizens of age 60 years and above). In your case, if the cummulative amount of interest income and income from capital gains exceed Rs 3 lakh, you have to file ITR. Only the amount above the basic exemption limit will be taxed. If your total income is below Rs 5 lakh you shall be entitled to claim rebate under Section 87A for the whole amount of tax or Rs 12,500, whichever is less. Since you have income only under head capital gains and other sources (interest), you have to file ITR 2.

I have invested Rs 15 lakh in Senior Citizen Savings Scheme in post office @9.3%, of which, one deposit of Rs 5 lakh is maturing next month. If I extend it for three years will I get the same interest? Can I consider this Rs 5 lakh as invested against Section 80 C?
—S Viswanathan
On extension of SCSS account, prevailing interest rate shall apply. Further, investments made in the scheme shall qualify for income tax deduction benefit up to `1.5 lakh under Section 80C and only fresh investment is eligible for deduction.

The writer is director, Nangia Andersen Consulting. Send your queries to fepersonalfinance@expressindia.com

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