ITAT says foreign salary in NRE account is not taxable by itself
In short
A Bengaluru ITAT ruling said foreign salary credited to an NRE account is not enough on its own to make it taxable in India. The case looked at the person’s overseas job, passport and bank records.
This matters for people working abroad and for tax officers checking NRE accounts. The final tax result is still unknown because the case was sent back for fresh assessment.
What the reporting says
A Bengaluru ITAT ruling held that foreign salary credited to an Indian NRE account cannot by itself make the income taxable in India, according to the reporting. The tribunal considered the taxpayer’s overseas employment, passport and bank records before sending the case back for fresh assessment. What tax outcome follows from the reassessment is not stated in the available reporting.
Why it matters
The Bengaluru ITAT found that foreign salary paid into an Indian NRE account does not automatically create Indian tax liability. It reviewed overseas employment, passport and bank records, then sent the case back for a fresh assessment. The ruling matters for non-resident taxpayers and tax authorities, but the final reassessment outcome and any tax demand are not stated.