An NRI, who does not wish to be named, spoke to Mint about their unique situation. An Indian passport holder, they have lived in Singapore for the past 12 years. They work for a consulting company.
Their mother, who lived in India, passed away this year. They have since visited India to manage the assets she inherited. They expect to spend around three months in India during this financial year.
Income from these assets will put their Indian income in the 30% tax slab. The NRI wants to know whether this stay will make their Singapore salary taxable in India.
According to Harshal Bhuta, a three-month visit should not, by itself, make their Singapore employment income taxable here in India. Bhuta is a partner at P. R. Bhuta CAs.
Their higher Indian income also does not automatically bring their foreign salary under Indian taxation. The answer depends mainly on their residential status under the Income-Tax Act, 2025.
Bhuta, however, says that carrying out employment duties during the visit needs separate consideration. Salary relating to work performed in India may need examination for Indian tax purposes. The tax agreement between India and Singapore could provide relief, subject to its conditions.
For this relief to apply, the person must continue to qualify as a Singapore tax resident. They would need a Singapore Tax Residency Certificate, also called a TRC. Form 41 must also be filed to claim the applicable benefit under the agreement, Bhuta added.
The residence rules explain why their expected stay should generally preserve their non-resident status. Indian citizens visiting India usually face a 182-day residence threshold.
This falls to 120 days when their Indian income exceeds ₹15 lakh. The shorter test also requires 365 days in India during the preceding four years.
Since their Indian income falls under the 30% slab, it is assumed to exceed ₹15 lakh. Their planned stay of around three months should remain below the 120-day limit. They should, therefore, continue as non-residents for Indian tax purposes, according to Bhuta.
General tax rules
The general tax rules, however, use two tests to determine residence. Staying in India for at least 182 days during the year makes someone a resident.
Alternatively, staying at least 60 days can qualify. That requires another 365 days in India during the previous four years. Visiting concessions replace the 60-day limit for Indian citizens and persons of Indian origin.
Non-residents generally pay Indian tax on income received or deemed received in India. Income arising, or considered to arise, in India is also generally taxable here. Therefore, their Singapore salary should generally remain outside Indian taxation merely because of this visit, according to Harshal Bhuta.