Q.889 Working at Indian embassy

- Benefits of NRI status for tax

filing

Sir, I am an Indian government servant posted abroad in Indian Embassy for three years and get salary in foreign currency abroad from GOI. My office deduct GPFund from my account and apply all slab and other 80C deductions applicable to a resident. I have NRI and FCNR accounts in India. My question is that whether i should file my return as NRI or resident as Indian Embassy is considered extended land of india. Most important question is that if I file as NRI, will there be less benefits for me if i had filed my return as resident? regards vijay Khanna Answer: The main benefit that I am aware of filing as NRI is that earnings made abroad are generally not subject to tax in India. For NRIs, only income from Indian sources is taxed. NRIs are liable to be taxed only for income or capital gains earned in India. However, I doubt if this would apply to Indian Embassy employees who are citizens of India and being paid by the Government of India. Since you work at the Indian embassy I’m sure the senior embassy staff there, should be able to guide you in this matter.