South Korean employer paid him salary in dollars; tax department sends notice
The Income Tax Appellate Tribunal in Bangalore has ruled in favor of an employee who faced tax notices for salary payments received in US dollars from a foreign employer. The case clarifies tax liabilities for non-resident Indians working abroad.
Why it matters
This ruling provides important legal precedent for non-resident Indians regarding the taxation of foreign-sourced income and the necessity of proper documentation.
As a non-resident Indian are you liable to pay tax in India? In one such case, the Income Tax Appellate Tribunal (ITAT), Bangalore, has granted relief to an employee who received a tax notice over salary payments made by his foreign employer to his Non-Resident External (NRE) bank account in India.What the case is aboutA man from Karnataka moved to South Korea to work for a company that had won a major project from Samsung Heavy Industries in South Korea.Under the arrangement between Samsung Heavy Industries and Ocean Rig UDW Inc., the man was required to work at Samsung's shipyard from September 2014 to June 30, 2016.Also Read | Man invested Rs 10 lakh, which tax department treated as unexplained; he first cited cash loan, then bank withdrawals as source, ITAT Nagpur deletes addition and Rs 2.11 lakh penaltyHis responsibility was to supervise the construction of a vessel.
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