Q734. Filing Tax in India when

Salary paid in USA bank account by

Employer

Question: Hi, I am US citizen and living in India (OCI card- holder), past 1 year I am living in India but working for US company and salary is deposited in US bank account. I am filling tax return every year in USA for US income and India rental + deposit incomes. In India I file tax return for India rental +deposit incomes, Do I need to show US income in Indian tax return? Thanks Ram Answer: While residential status in India does play a role in determining whether worldwide income in taxable in India, kindly be advised that: • All income received or accrued in India is subject to tax in India • Any salary income that relates to services rendered in India is deemed to arise/accrue in India. Regardless of the residential status of the person or where the income is received. Exception for Foreign companies If the following conditions are satisfied, then employees of foreign enterprises who are foreign citizens may perhaps not be subject to tax in India. The conditions are: 1. The Foreign company is not engaged in a trade or business in India 2. The employee does not stay in India for more than 90 days in the taxation year 3. The salary paid is not claimed by the employer as a deduction from taxable income in India Perhaps you should consult a tax professional for advise and if need be bring your tax returns up to date to stay in compliance of tax laws of both USA and India.