Nri query
Querist :
Anonymous
(Querist) 10 December 2011
This query is : Resolved
1) In the PY 2009-2010, I am having NRI status as I was out of India for a period exceeeding 180 days. I worked on two contracts one in Europe and one in Dubai.
The contract in Europe had services rendered in Europe and the remittances on the invoices raised for the period 1 Jun 2009 to 15 Oct 2009 on this contract, has been remitted directly by my client to my NRI account in India.
For the Period 15 Oct 2009 to 31 March 2010, I worked in Dubai, under a contract, and the remittance on these were first received by me in my Dubai bank account after which I transferred to my NRI account in India.
My CA was comfortable for the remittance that I made from my bank account in Dubai, however wanted an opinion on the remittance made by my client directly from Europe to my NRI bank account
Could you kindly provide me with some tax opinion with reference to cases that demonstrate that NRI receipts , remitted directly to India from abroad are also not eligible for tax in India?
2) The second point is in the PY 2010-2011, I have received some money for my Dubai project, although these were accrued in PY 2009-2010, In the PY 2010-2011 Iam not having NRI status, so would this receipt become eligible for tax.
Vineet
(Expert) 02 March 2012
The remittances you received during FY 2009-2010 from abroad either from your own bank account or your client account are not taxable in India as you were non resdident during that year and the receipts in your NRE account had no connection with any business or other source in India. So if these receipts are purely fruit of your individual efforts and no business connection in India, they are not taxable in India.
Regarding second query, as the income accrued to you in FY 09-10 (AY 10-11), hence the same is not taxable in current year, though received. However, you will have to satisfy authorities with documentary evidence that the said income had indeed accrued to you in earlier year.
