Decoding tax rules for NRIs working remotely from India for foreign employers

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Key Points

While the pandemic brought about much-needed flexibilty in the office, new work norms like work from home, and work from anywhere also carry significant tax implications, especially for Non-Resident Indians (NRIs) working remotely for foreign employers..

This article delves into the tax ramifications for NRIs under India's domestic tax laws and Double Taxation Avoidance Agreements (DTAA) concerning income earned while working from India...

Under the Income-Tax Act, 1961, salary income is deemed to be earned in India if the services are rendered within its borders..

salary received is not deductible from the employer's Indian taxable income.Specific exemptions may apply to NRIs employed by foreign ships or governments...

NRIs must report salary income received from a foreign employer while working from India in their Indian tax returns under the appropriate schedules..

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