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)
MEET US

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Due Dates

  • GSTR-7 Summary of Tax Deducted at Source (TDS) and deposited under GST laws

    Nov 10th ,2021
  • GSTR-8 Summary of Tax Collected at Source (TCS) by e-commerce operators under GST laws

    Nov 10th ,2021
  • GSTR 1 for Oct 2021 (turnover more than INR. 1.50 Crore)

    Nov 11th ,2021
  • GSTR-6 Details of Input Tax Credit (ITC) received and distributed by an Input Service Distributor (ISD)

    Nov 13th ,2021
  • Quarterly TDS certificate (in respect of tax deducted for payments other than salary) for the quarter ending September 30, 2021

    Nov 15th ,2021
  • GSTR-3B is a summary return to be filed by all taxpayers except those registered under the composition scheme, every month. However, from 1st January 2021, there is also quarterly filing option provided to taxpayers with annual aggregate tunrover of up to Rs.5 crore, opting for the QRMP scheme for Oct Month. (Aggregate turnover exceeding Rs.5 crore in the previous financial year)
     

    Nov 20th ,2021