Neutral impactStocks
Employer in South Korea paid him salary in dollars in India; income tax department sends notice
Times of India 1 hr ago·13 Oct 2026, 7:34 am
A recent tax tribunal ruling has clarified that a salary paid in dollars to a resident of India by a South Korean employer is not taxable in India, provided the employee maintains non-resident status. The Income Tax Department had initially issued a notice to a Karnataka-based employee, arguing that his income was subject to tax in India because it was deposited in a Non-Resident External (NRE) account. However, the Income Tax Appellate Tribunal (ITAT) Bangalore ruled in his favor, finding that he had successfully established his non-resident status.
This case is significant for Indian professionals working abroad, as it reinforces that foreign income is not automatically taxable in India. The tribunal's decision highlights the importance of maintaining proper documentation to prove residency status. For investors, this ruling provides a degree of clarity on the tax treatment of foreign-sourced income, reducing uncertainty for those earning in foreign currency.
Key takeaways
- Category: Stocks.
Why it matters
A routine update. Use the price and stock snapshot to gauge how the market is responding.
