Summary of this article
Taxing foreign salary depends on residential status and days in India
Remote salary may be taxable here if work is performed from India
DTAA relief, documentation, and 90-day exemption rules help avoid double tax
Longer stays can trigger RNOR/resident status and global income taxation
With more people blending travel and remote work, many are left wondering how their income is taxed when they work from India for foreign employers. The rules are shaped by residential status, where the work is performed, and how long you stay, all of which determine your tax liability under Indian law.
How Is Your Tax Residency In India Determined?
The way your income is taxed depends on your residential status. A person becomes a resident of India for tax purposes if he or she spends a certain number of days in India. An individual is a tax resident if they stay 182 days in India, or 60 days plus 365 days over four years.
If you stay abroad most of the time and meet certain conditions, you might be classified as a non-resident. In between is another category called Resident but Not Ordinarily Resident (RNOR), which has its own tax implications.
A resident is taxed on global income, meaning wages earned inside and outside India are taxable here. A non-resident, on the other hand, is taxed only on income that is deemed to accrue or arise in India, or is received in India.
When Remote Work Becomes Taxable Here
Under Indian tax law, salary is generally considered to accrue where the work is performed. Let us say that your contract is with a foreign country and your money is sent to an overseas account. Your income may still be taxed in India if you are physically working from here.
It is also important to remember that Double Taxation Avoidance Agreements (DTAAs) help prevent the same income being taxed twice by allocating taxing rights between countries and allowing tax credit relief.
However, non-resident foreign citizens working remotely from India for short periods can avail some exemptions.
If your employer doesn’t have a taxable presence in India, your stay in India doesn’t exceed 90 days in a financial year, and your salary is not charged to tax in India by the employer, then this specific part of your income may be exempt from Indian tax.
This means that under these conditions, even though you are working in India, that portion of your foreign salary could remain outside Indian tax, but you must meet all the criteria precisely.
Planning Around Residential Status
The tax outcome changes sharply with your length of stay. Spending more days in India can shift your status from non-resident to resident or RNOR, which then draws your global income into the Indian tax scope. This makes it critical to monitor travel and stays year by year if you want to optimise your tax position.
Why Documentation Matters
If you are relying on exemptions or treaty benefits, then certain documentation is very important. Proof of your residential status, employer’s non-presence in India, and the number of days of stay becomes crucial. Missing certificates or incorrect documentation can lead to unexpected tax shocks or complications.
