Income earned from various sources is taxable according to the different guidelines by the Income Tax Department. The taxes on income of Non-Resident Indians (NRIs) and a person earning income from overseas company residing in India are different. For instance, if a person residing in India and receiving the income from a company which is based outside India, then the tax treatment in the income will be according to the tax slabs applicable on the resident Indians.

The resident status can be verified by examining the residing duration in the previous years from the time for which the income tax has been examined. A person will be deemed as a resident Indian if the individual is present in India for 182 days or more days in a particular financial year.

Individuals who are present for less than 182 days will be examined on the basis of the four-year term. If the person is residing in India for 60 or more days in India in a respective fiscal year and for 365 days or more in the four financial years immediately preceding to the relevant financial year will be treated a resident Indian.

As per the present income tax guidelines in India, the income will be taxable in India if the individual is receiving the salary for the work done in India on the behalf of the company based outside India.

With all the aforementioned conditions, the person who is receiving income from sources based outside India will be taxable according to the prevailing income tax slabs. The person is mandated to report the income from all the sources, including global sources, in India and have to file the income tax return with regard to the applicable slab rates.

An individual may cross-check for the Double Taxation Avoidance Agreement (DTAA). If the taxes have been already paid in the foreign country, then a person is allowed to claim the benefits under DTAA. For availing the benefits of DTAA, an individual is required to preserve the salary slips/ statement of earning issued by the employer and can provide them to the Income Tax Department while filing the I-T return.

Further, a person will be considered a resident Indian if the individual is residing in India for 729 days or more in the last seven years, and if the person is residing in India in any of the two full financial years of the last 10 fiscal years immediately preceding to the year for the income is being accounted.