taxation pertaining to NRI STATUS

adv fauzia azim (Querist) 27 January 2009 This query is : Resolved
DEAR FRIENDS,PLEASE LET ME KNOW THAT IF A PERSON EMPLOYED IN A FOREIGN COMPANY IS WORKING ON A 3 MONTH CONTRACT DURING THE MONTHS OF FEBRUARY,MARCH AND APRIL.AND IF HE RECEIVES PAYMENT FOR HIS JOB IN THE MONTH OF APRIL(FOR ALL 3 MONTHS) .THEN WILL HE BE LIABLE TO PAY TAX ON CURRENT FINANCIAL YEAR OR THE NEXT FINANCIAL YEAR.LOOKING FORWARD TO AN EARLY REPLY.THANKS IN ADVANCE.

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Ashok Kumar Garg (Expert) 28 January 2009
So far as salary income is concerned it is taxable also on due basis . This is clear from section 15(a) of the Income -tax Act. The relevant portion reads as under :
"any salary due from an employer or former employer to an assessee in the previous year whethre paid or not" .

It will be taxable in the year to which it relates.

In this case , absence for 3 months will not make any difference. If any tax has been withheld in foreign country , he may or may not get credit for the same depending on Double Taxation avoidance agreement with the concerned country.

Ashok Garg

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