I moved to Australia in July 2018. I was paid salary in India until then and in Australia for the rest of the year. Where will I be taxed for 2017-18?






Deepa Deepa
Answered on February 07,2020

To identify whether your income will be taxed in India, you must consider two aspects—what is your residential status for the financial year and whether your income was earned in India. To be a resident of India for tax purposes, you must meet any of the following conditions and both the additional conditions:

Conditions: a) you are in India for 182 days or more in the financial year (FY); or b) you are in India for 60 days or more in the FY and 365 days or more in the four FYs immediately preceding the relevant FY.

Additional conditions: you are resident in India in two of the 10 FYs immediately preceding the relevant FY; and you are in India in the seven years immediately preceding the relevant FY for 729 days or more.

If you do not meet any of the first set of conditions, you would be an NRI. If you meet the first set of conditions but do not meet the additional conditions, you would be Resident but Not Ordinary Resident (RNOR) in India.

It appears that you were living in India until July 2018 and then moved to Australia. Therefore, it seems you are resident and ordinarily resident in India in FY18. For FY19, you continue to meet the required conditions for being resident in India and, therefore, your income earned anywhere in the world will be taxed in India.


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