Will an NRI’s Singapore income become taxable in India due to extended stays?

I am a non-resident Indian (NRI) working for a Singapore consulting company and have been residing in Singapore for the last 12 years on an Indian passport. My mother, who lived in India, passed away this year. Since then, I have visited India and would be likely to spend around three months in this financial year to manage the inherited assets in India. Also, because of the income from inherited assets, my Indian income will now be in 30% slab rate. In this scenario, will my Singapore employment income become taxable in India merely because of my long stay in India during this fiscal year?

—Name withheld on request

Your taxability in India will depend on the scope of your total income, which is determined by your residential status in India under the Income-Tax Act, 2025.

Broadly, an individual is regarded as a resident in India if he or she is present in India for 182 days or more during the relevant tax year, or satisfies the alternative 60-day test together with a stay of 365 days or more in the preceding four years. However, for an Indian citizen or a person of Indian origin who visits India, the 60-day threshold is generally replaced by 182 days. Where such person’s total income in India exceeds ₹15 lakh, this threshold is instead reduced to 120 days.

Since you have indicated that your Indian income will fall in the 30% tax slab, I have assumed that your Indian income exceeds ₹15 lakh. Given that your stay in India is expected to be around three months, you should not cross the 120-day threshold. You should therefore continue to qualify as a non-resident (NR) for Indian tax purposes.

As an NR, you are generally taxable in India only on income that is received or deemed to be received in India, or that accrues or arises, or is deemed to accrue or arise, in India.

Accordingly, your salary from the Singapore employer should generally not become taxable in India merely because you spend around three months in India. The position, however, requires some additional consideration if you actually perform your employment duties while in India.

Even in that situation, if you continue to qualify as a tax resident of Singapore and obtain a Singapore Tax Residency Certificate (TRC), the salary attributable to the period of employment exercised in India may still be protected from Indian taxation under the India–Singapore Double Taxation Avoidance Agreement (DTAA), subject to satisfaction of the treaty conditions. Form 41 would also need to be filed to claim the applicable DTAA benefit.

Harshal Bhuta is a partner at P. R. Bhuta CAs.