Is Allowance received in your dollar account taxable in India
Hi,
I stayed abroad for more than 260 days in last financial year. Being my company is an Indian IT company, and I travelled on business VISA not on work permit, so I received my Indian Salary in India and company paid my allowance in USD dollar (Axis Bank dollar account) to managed my overseas expenses.
Points to remember:
1. I was on Business VISA not on Work permit in last financial year.
2. Outside India for more than 260 days in last financial year.
3. I was outside from 2009-2015, on work permit, and worked abroad (recruited by local company located abroad). I was NRI between 2009-2015 (stayed less than 240 days in India between 2009-2015). I moved to India in March 2015 and joined India company and moved abroad again in May 2015.
4. I kept coming to India every 4th month for 1-2 weeks in 2015-2016 for Business VISA renewal and then travelled back abroad after Business VISA renewal.
5. My Indian salary credited in Indian bank account and onsite allowance credited in Axis Bank dollar account.
Questions:
1. I know Indian salary is taxable and company has already been deducted the Income tax against my Indian salary and provided me with the form 16. I am okay with that. Just one question, Can I claim house rent exemption as I used to come back to India every quarter and kept one small house to stay during that time.
2. Is my onsite allowance taxable, in case I saved some money out of that. For example; company is paying 150 dollar per day allowance. I saved say 50 dollars per day. Being I stayed abroad 260 days in last financial year so total saving is 50 * 260 = 13000 dollars. Do I need to include this money into my India salary and pay the taxes accordingly as per the Indian tax rules. In case, If I remitted this money to my NRI account (being I still maintaining my NRI accounts), is this amount still taxable?
Looking for your expert advice on this.
Thanks and Regards,