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NRI Tax Win: Salary Abroad, NRE Account Safe
23 Feb
Summary
- NRI's overseas salary of Rs 44 lakh was deposited in NRE account.
- Income Tax Department's claim was rejected by ITAT Ahmedabad.
- Overseas earnings in NRE accounts are not taxable in India.
In a landmark decision, the Income Tax Appellate Tribunal (ITAT) Ahmedabad has ruled that salary earned by a Non-Resident Indian (NRI) overseas and subsequently deposited into their Non-Resident External (NRE) account is not taxable in India. This judgment offers considerable relief to NRIs navigating complex tax regulations.
The tribunal's ruling came in favor of an NRI who had earned a salary of Rs 44 lakh abroad and credited it to their NRE account. Despite the Income Tax Department issuing a notice concerning these earnings, the ITAT upheld the non-taxable status of such foreign income when held in an NRE account.
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