I am an EP holder in Singapore. Even though my work location is Singapore, because of personal reasons I stayed in India and working remotely. All the time, my employer deposited my salary in Singapore bank account which I transferred to NRE account in India and used for my expenses. Yes, I only stayed for 2 months in Singapore. Now, how I will be taxed in India.
Hi,
Hope you are doing well !!
Ideally World income is taxable in India for a resident of India. So, salary earned anywhere throughout the world would be fully taxable to an Indian Resident in India.
The salary income has to be disclosed in Indian Income Tax return as a salary received from abroad (will be taxable as per your slab rate) and any excess tax over and above the taxes claimed as credit should be paid in India.
Hi,
- If your residential status in India is RNOR in the relevant previous year then no tax on Singapore income even though such salary was transferred by you to NRE account.
- If your residential status is ROR then your salary income will be taxable in India and the credit of taxes paid in Singapore on such salary would be available under the provisions of DTAA.
- In India, residential status is determined on the physical stay and on other factors.
Thanks
Hi,
For taxation purpose your physical presence in India is important. Since you were physically present in India for most part of the year, your global income will be taxable in India. If there has been any Tds deduction, you can claim the benefit of the same as per DTAA. Hope that clarifies.
Regards,
Nikhil.
As per the period of stay in India, you qualify to be ordinarily resident in India. IN such a case, your worldwide income is taxable in India.
IN case your Singapore income is getting taxed in Singapore aswell (ie doubly taxed). you may claim the credit in India for the taxes paid in Singapore.
Hi,
It is your residential status that determines your taxability of income. You are a resident of India and have earned income outside India, the same is taxable in India irrespective of whether you are repatriating the funds to India or not.
To put it in context, if you have paid tax on income earned overseas , you may claim the benefit of the DTAA.
Now you are treated as resident but not ordinary resident, so any income you earn or deemed to be earn in India or accrue or deemed to accrue in India will be taxable in India.
So are you staying in India for only personal reason or are you doing any project also in India and earning salary from Singapore.
If this is the case then your salary is taxable in India .
However if you are here just purely for personal reason and you are still doing work of Singapore then you salary won't be taxable in India.
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Thank you
If there is employer employee relationship between you and the company in Singapore, the company is paying salary to you. As you are resident in India, your salary income will be taxed in India.
Your employer will also have TDS liability.
You can claim double taxation relief in respect of tax liability, if any, in Singapore.
