New Delhi, Sept. 27 -- For Indians working overseas, where salary is credited can sometimes create confusion about where that income is taxable. A recent Bengaluru Income Tax Appellate Tribunal (ITAT) ruling has clarified that merely receiving foreign salary in an Indian NRE bank account cannot, by itself, be a reason to treat the salary as income accruing in India.

The ruling came in Santhoshkumar Vithal Akka vs Income Tax Officer, Ward International Taxation 1(1), Bengaluru, ITA No. 2056/Bang/2025, for assessment year 2016-17, with the order pronounced on 23 September 2026.

The taxpayer was a non-resident during the relevant assessment year and was working on a project in South Korea. His salary was fixed in US dollars and credited to...