French/US citizen living in India, Income Tax

[Shanna Johnson]

Hi,

I am a French citizen, tax resident is US (I am working is US since 2 years). I have been sent by my company in India for a 6 months work period. I am about to be paid dividends from France and wages from US.

I have read on a French website that these dividends would not be taxable in india since I am not considered as an indian tax resident. https://avocatdroitfiscal.paris/fiscalite-internationale

Do you think I am taxable in India?

Thanks,

Regards,

Posts / Replies

[Nandan Khambete]

Hi,

Before determining taxability of Income , it is important to determine your Residential Status as per Section 6 of Income Tax Act, 1961.

You are considered an Indian resident for a financial year :

• When you are in India for at least 6 months (182 days to be exact) during the financial year

OR

• You are in India for 2 months (60 days) for the year in the previous year and have lived for one whole year (365 days) in the last four years.

If your status is ‘resident,’ your global income is taxable in India. If your status is ‘NRI,’ your income which is earned or accrued in India is taxable in India.

Even in case you are Indian Resident in Financial Year 2017-18 and if Dividends are taxable , you can claim relief under India France DTAA of taxes paid in France on such dividends by filing Income Tax Return in India.

Regards,

CA Nandan Khambete

[Shanna Johnson]

Many thanks for your quick and very detailed answer!