Tax Rules for Resident Individual Recently Moved Abroad

When an Indian resident travel to another country for a temporary work assignment, it will be termed as “Resident individual on a temporary foreign assignment”.

How are you Taxed When You are a Resident Individual Recently Moved Abroad

For example Prashant travelled to US for a new work assignment. His earnings from US are credited into an Indian NRE account. He is having some FD’s and some money as savings in Indian bank account. He received Form 16 from his Indian employer. Whether he should file tax return in India or not?

Every Individual (whether NRI or not) has to mandatorily file Income tax return in India if his or her income exceeds Rs. 250000 in a Financial year. NRI’s are only taxed for the income earned or collected in India. Hence, Prashant needs to pay tax on the income which he has earned in India including the bank interest he has earned from FD’s and savings accounts.

Prashant’s income from India
Income from Indian employer Rs.4,00,000
Interest income from FDs Rs.20,000
Bank account savings interest Rs.5500
Gross total income Rs.4,25,500
Deductions
Section 80C – PPF investments Rs.30,000 (Claim upto 150000)
Section 80TTA exemption Rs.5,500 (Claim up to 10000)
Taxable income Rs.3,90,000
Tax slab at 5% Rs.7000
Cess at 3% Rs.210
TDS deducted by employer Rs.5000
TDS deducted by bank Rs.5,500
Tax Refund Rs.3290 (10500 – 7210)
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Due Dates

  • Due date for deposit of Tax deducted/collected for the month of April, 2022. However, all sum deducted/collected by an office of the government shall be paid to the credit of the Central Government on the same day where tax is paid without production of an Income-tax Challan

    May 07th ,2022
  • Due date for issue of TDS Certificate for tax deducted under section 194-IA in the month of March, 2022

    May 15th ,2022
  • Due date for issue of TDS Certificate for tax deducted under section 194-IB in the month of March, 2022

    May 15th ,2022
  • Due date for issue of TDS Certificate for tax deducted under section 194M in the month of March, 2022

    May 15th ,2022
  • Due date for furnishing of Form 24G by an office of the Government where TDS/TCS for the month of April, 2022 has been paid without the production of a challan

    May 15th ,2022
  • Quarterly statement of TCS deposited for the quarter ending March 31, 2022

    May 15th ,2022