The Delhi bench of the Income Tax Appellate Tribunal (ITAT) informed that if the expatriate employee will be able to authenticate that while working outside India, he has not involved in any activity relating to Indian operations, the salary for that time period would not be taxable here.
As per Income Tax Act, if an individual has been in India during that year (the year for which tax liability is being calculated) for 182 days or more, is a resident in a previous year. He is also treated as a resident if he is in India for 60 days or more in a year provided that he has also been in India for 365 days or more in the prior four years.
Vikas Vasal, executive director (tax and regulatory services), KPMG, said, based on this ruling a position could be taken that individual is not taxable for the period for which he has rendered service outside India. But, the documentary proof would be critical for taking this position.
As per Income Tax Act, if an individual has been in India during that year (the year for which tax liability is being calculated) for 182 days or more, is a resident in a previous year. He is also treated as a resident if he is in India for 60 days or more in a year provided that he has also been in India for 365 days or more in the prior four years.
Vikas Vasal, executive director (tax and regulatory services), KPMG, said, based on this ruling a position could be taken that individual is not taxable for the period for which he has rendered service outside India. But, the documentary proof would be critical for taking this position.
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