Legal Question in Tax Law in India

Re: NRI taxation

You do not have to pay tax in India in respect of your salary received in Hong Kong for the employment.

In case, however, you have any income in India, such as rent, interest, capital gains, etc., you will have to pay tax on the same in India.

Re: NRI taxation

Why do you get a doubt about paying taxes in India if you don't earn in India.

Residence in India.

For the purposes of the I.T. Act-1961

42.

(1) An individual is said to be resident in India in any previous year, if he

(a) is in India in that year for a period or periods amounting in all to one hundred and eighty-two days or more ; or

(b) 43[* * *]

(c) having within the four years preceding that year been in India for a period or periods amounting in all to three hundred and sixty-five days or more, is in India for a period or periods amounting in all to sixty days or more in that year.

44[Explanation.In the case of an individual,

(a) being a citizen of India, who leaves India in any previous year 45[as a member of the crew of an 46Indian ship as defined in clause (18) of section 3 of the Merchant Shipping Act, 1958 (44 of 1958), or] for the purposes of employment outside India, the provisions of sub-clause (c) shall apply in relation to that year as if for the words sixty days, occurring therein, the words one hundred and eighty-two days had been substituted ;

(b) being a citizen of India, or a person of Indian origin within the meaning of Explanation to clause (e) of section 115C, who, being outside India, comes on a visit to India in any previous year, the provisions of sub-clause (c) shall apply in relation to that year as if for the words sixty days, occurring therein, the words one hundred and 47[eighty-two] days had been substituted.]