I am and Indian working in Dubai(UAE) since May 2024 and receiving my money in UAE account but I have stayed in India for around 194 days so according to the rule I am still the resident of India, what will my money received in UAE account taxable in India?
Ans: Yes, your global income will be taxable in India for FY 2024–25 because of your residential status.
Let us look at this from a 360-degree perspective.
? Your Residential Status Is Key
– You said you stayed in India for around 194 days in FY 2024–25.
– That makes you a Resident and Ordinarily Resident (ROR) for income tax purposes.
– As an ROR, you are liable to pay tax in India on global income, not just Indian income.
? UAE Salary Credited in UAE Account Is Still Taxable
– Your UAE salary, even if received outside India, will be taxable in India.
– The location of the bank account does not change the tax liability.
– The source of income and your residency are what matter.
– As a resident, you must report and pay tax on this income in India.
? What If You Become NRI Next Year?
– If you stay in India less than 182 days in FY 2025–26, you’ll become an NRI.
– Then your foreign income will not be taxable in India.
– Only income earned or received in India will be taxed.
? TDS and Advance Tax Requirements
– Your employer in UAE won’t deduct TDS for India.
– But as a resident, you should calculate and pay advance tax on your UAE salary.
– If your total tax liability in India exceeds Rs 10,000, advance tax applies.
– Pay it in 4 instalments (June 15, Sept 15, Dec 15, Mar 15).
? Disclosure of Foreign Assets
– As an ROR, you must declare foreign bank accounts and other assets in your ITR.
– Use Schedule FA while filing your Indian income tax return.
– Failure to disclose can attract penalties under the Black Money Act.
? Can You Claim Relief from Double Taxation?
– India and UAE have signed a Double Taxation Avoidance Agreement (DTAA).
– But UAE has no personal income tax as of now.
– So DTAA benefits won't help you much in this case.
– However, if in future UAE introduces income tax, relief may be claimed.
? Which ITR Form to Use?
– You must file ITR-2 or ITR-3, depending on income type.
– Use ITR-2 if you are salaried and do not have business income.
– Don’t use ITR-1 (Sahaj) – it is not allowed for foreign income.
? Repatriating Money to India Is Not Taxable by Itself
– Simply transferring your UAE salary to an Indian bank account is not taxable.
– The income itself is taxable due to your resident status.
– The act of remittance is not a taxable event.
? Tax Saving Tips While You Are Resident
– Use Section 80C deductions – PPF, ELSS, children’s tuition, LIC, etc.
– Use Section 80D for medical insurance premium paid for family.
– Claim HRA if you are paying rent in UAE, though with limited benefits.
– NRE accounts are not useful while you’re a resident.
? Once You Become NRI Next Year – What Changes
– Foreign salary will become non-taxable in India.
– Only Indian income like rent, FD interest, MF redemptions will be taxable.
– You can open NRE and NRO accounts.
– Maintain proper documentation for source of income and remittances.
? Track Your Days in India Every Year
– To avoid confusion, keep a record of each day spent in India.
– Even partial days count as full days for residency calculation.
– Cross the 182-day mark, and your tax liability changes completely.
? Finally
– Since you are Resident for FY 2024–25, your UAE salary is taxable in India.
– You must report and pay tax on it while filing ITR in India.
– Plan your residency and travel dates smartly for future years.
– After becoming NRI, you can enjoy full exemption on foreign salary.
– Always disclose foreign assets and income properly in ITR.
– Consider consulting a Chartered Accountant with international tax experience.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment