Chartered Accountant · ICAI M.No. 153926 · FRN 136869W · Reviewed on 7 October 2026
Why the salary stays out
Salary accrues where the service is rendered — work done in Dubai accrues in Dubai, whatever the employer’s nationality. For a non-resident, India taxes only income that accrues in India or is received first in India. Article 15 of the India–UAE DTAA points the same way. So the combination that matters is: non-resident status plus services rendered outside India.
The three traps, precisely
Days: you are resident at 182+ days in India; and if your Indian-source income exceeds ₹15 lakh, even 120 days (with 365+ over the preceding four years) is enough. Count arrival and departure days conservatively. Receipt: income first received in India is taxable even for non-residents — so have salary credited to your UAE account first and remit to your NRE account after; never let the employer wire it straight to an Indian account. Deemed residency: with Indian-source income above ₹15 lakh and no tax liability in the UAE, section 6(1A) can deem you resident — but section 6(6)(d) makes you RNOR, and an RNOR’s foreign salary for work done abroad remains outside Indian tax (unless from a business controlled from India).
What India still taxes, and when to file
Indian rent, NRO interest, dividends and capital gains on Indian assets remain taxable — NRE and FCNR interest stay exempt while you are non-resident. File an ITR if Indian income crosses the basic exemption or you want refunds of TDS (banks deduct 30% on NRO interest by default; lower-deduction routes exist). A return-to-India year needs planning before the flight — RNOR status is a short, valuable window. Our NRI tax practice runs day-count reviews and the India-side filings over video.