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NRI Income Non-Taxable in India if Stay Abroad Exceeds 182 Days

With companies stretched around the globe, it is not uncommon for employees to travel abroad or be deputed for work related purposes. A scenario which is more prevalent in today’s global economy. This change in the work environment led to amendments being made to the tax laws. One such law under sub-section 1 of section 6 states, if a person working for an Indian company has traveled abroad or was deputed for work reasons and his/her salary was credited to their Indian bank account, he/she could not be taxed if their stay abroad was more than 182 days.

Recently, ITAT-Delhi, ruled in favor of the assesse, who was employed by Reliance Industries, Ltd, Mumbai, but deputed to Kurdistan, Iraq for 203 days. While his work location was outside India, his salary continued to be credited in his Indian bank account with TDS. The assesse filed his return as non-resident and sought exemption of Rs. 40,04,830 out of his annual salary of 43,68,905, as it was earned outside of India. The assesse was successful in his appeal since under sub section 1 of section 6, as he had stayed more than 182 days outside India.

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