How Can I Prove My NRI Salary to Avoid Tax Issues with Cash Deposits?

Dear All, I have been working abroad for almost 2 years now as a senior manager. My company, while offering me the job, did not give an appointment letter. When I came over, I did not have a Non-Resident Indian (NRI) account as banks did not provide one without an appointment letter. For the last 2 years, my company in Africa has been paying my salary by depositing the amount in rupees in cash into my Indian bank account.

Proving NRI Income to Tax Authorities

My problem now is how do I prove to the income tax authorities that the money earned is salaried income from an NRI source and hence not taxable? If I can't prove this, a substantial amount will have to be paid as tax. During the last 2 years, I have never returned to India and I am still residing abroad. I have a work permit and a passport to support my stay. Can anyone please help by suggesting a plan of action?

Thank you.

The best thing for you is the following:

- First, ask your company for an appointment letter and confirmation of salary.
- Second, speak to a chartered accountant and find a solution.

This is a complex situation for which taking community advice based on sketchy information would be counterproductive.

Hi,

For NRIs, only Indian income is taxable in India. From your passport copies, you can prove that your residential status is NRI for India, and so your salary earned outside India is not taxable in India. For more details, you can send your query to caroopalikhadke@gmail.com.

Regards,
CA Roopali Khadke
Founder
Khadke Associates