Home |Tax returns filing | I work for a multi-national company in India. Next month, I am likely to be moved to Dubai on a medium-term assignment. Will I still have to pay income tax in India because my salary slip would be generated in India?

I work for a multi-national company in India. Next month, I am likely to be moved to Dubai on a medium-term assignment. Will I still have to pay income tax in India because my salary slip would be generated in India?

Meera
Answered on February 12,2020

You should first find out your residential status in India for the financial year in question. You are considered resident in India, if you meet any one of the following conditions.

You are in India for 182 days or more in the financial year. Or,
you are in India for 60 days or more during the financial year and
you have been in India for 365 days or more during 4 years immediately preceding the financial year.

If you are resident for the said financial year in India, your income earned anywhere in the world is taxable in India. However, if you are Non-Resident in India, only the income earned or received in India is taxable in India.

Since you say your pay slips are generated in India, I am assuming your salary is paid to you in India. If your salary is paid to you/is credited to you in India then it shall be taxable in India. If any tax is deducted in the country where you live, you can take benefit of DTAA(Double Taxation Avoidance Agreement). However, since there is no tax on income in Dubai, the tax on such income will have to be paid in India.

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