Foreign Salary Credited Abroad – Is It Taxable in India?

I work in the UAE, and my salary is credited entirely to my UAE bank account.

For the last few years, I've only reported my Indian rental income and NRO account interest in my Indian tax return. My foreign salary wasn't included because of my tax residency status during those years.

I also keep copies of my overseas salary slips, employment contract, and foreign tax statements, just in case I ever need to explain the source of funds transferred to India.

I had a similar experience after moving to Canada.

During the year I relocated, my tax situation became more complicated because I spent part of the financial year in India and part overseas. My advisor reviewed my travel history before deciding how my income should be reported.

The important thing I learned was not to assume that foreign salary is always treated the same way. Your residential status for the relevant financial year plays a big role, so it's worth confirming before filing.

I'm based in Singapore, and my salary is deposited into my Singapore bank account every month. My chartered accountant explained that since I qualified as an NRI for that financial year and my salary was earned as well as received outside India, it wasn't included in my Indian taxable income.

I still filed an Indian tax return because I had rental income from property in India. My return only included the Indian-source income, not my overseas salary.

That said, my accountant always checks my residential status first because the tax treatment can change if your status changes during a financial year.