Resident Status in case of return India after completing 183 days outside india

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  1. kapiljain1989

    kapiljain1989 New Member

    Hello,

    I am deputed in JAPAN and in japan from 1st April and now coming back to India on 19th dec 2016 and completed more then 183 days in JAPAN. Should i consider as Indian resident and i have to pay taxes on Global income?
     
  2. V K Khanna

    V K Khanna Active Member

    The purpose for which you were deputed to Japan will decide your residential status under the Income Tax Act. Your post is silent on this aspect.
     
  3. kapiljain1989

    kapiljain1989 New Member

    I came to japan for onsite work assigned by my company.
    One of our compny branch is in japan and i am deputed here.
    So i came for employent purpose.
     
  4. V K Khanna

    V K Khanna Active Member

    Your status for the AY 2017-18 for tax purposes in India will be non resident u/s 6 of the Income Tax Act. Your foreign income is not taxable in India. However, you will be liable to pay tax in respect of income that you earned or accrued in India.
     
  5. kapiljain1989

    kapiljain1989 New Member

    But i am coming permanently in India, still 182 days clause apply?
     
  6. V K Khanna

    V K Khanna Active Member

    The residential status of the individual changes from year to year. If your status during the AY 2017-18 is non resident, it will be resident individual in the next AY 2018-19 and you will be taxed accordingly.
     
  7. kapiljain1989

    kapiljain1989 New Member

    Thank you for your reply,
    Means for current financial year i am Non Resident, whatever i will come permanently in India.

    The issue is that my company is saying that as you are more then 60 days in India and come permanently so you have to pay taxes and they will deduct TDS from my salary.

    Could you please guide in this scenario, what i have to do?
     
  8. V K Khanna

    V K Khanna Active Member

    Even if your status for the AY 2017-18 is non resident, you are liable to tax for the Income you have earned or likely to earn in India. If TDS is deducted by your employer, you can claim refund by filing the return in case your gross income is less than the exemption limit of Rs 2.50 lakh.
     
  9. kapiljain1989

    kapiljain1989 New Member

    Thank you for your quick reply,

    They will cut TDS on my global income, Considering me as resident.
     
  10. V K Khanna

    V K Khanna Active Member

    You must have paid taxes on your global income to the Japanese authorities. If your employer also deduct TDS, it would amount to double taxation. As a non resident, your foreign income is exempt from taxation in India.
    You can explain to your employer the provisions of sec 6 of the Income Tax Act and as a non resident, you are not liable to tax in India in respect of your foreign income.
     
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