By buld_online 
I worked for more than 183 days (from April to October 2024) in Oman during the previous financial year. I have been working as a consultant in India from November 2024. Will the income earned in Oman be taxable in India? Will the consultancy charges earned in India in Indian rupees be as taxable or non-taxable in India as I have been out of India for more than 183 days? Which income tax form I would have to fill while filing my income tax return? If I withdraw my PF balance accumulated while working in India during 2016 to 2019, Will I get it as non-taxable or will it be taxable? How can I make it non-taxable?
Reply by: Balwant Jain, tax expert
Since you have not been in India for 182 days or more, you are non-resident for the purpose of income tax and therefore your Oman Income will not be taxable in India but your consultancy income from your present employers will be taxable in India as all income from Indian source are taxable for resident as well as non-resident tax payers.
The income tax form to be filed by you depends on the nature of income. Since you are working as consultant, which shall become taxable under the head “Profits and Gains of business or Profession” you will have to file ITR 3 or ITR 4 in case your professional income qualifies for presumptive taxation under Section 44ADA.
If you withdraw money from your EPF account now, it will be taxable as the contributions in your EPF account were made for a period of less than 5 years. So in case you want to save tax on the PF balance, the best course of action for you is to get this balance transferred to the EPF account of your employer in future as and when you take up a regular employment in India and the employer has provident fund scheme for its employees. In case you do not wish to take up full time employment in India the accumulated balance in your provident fund account shall become taxable whenever you withdraw it. It is the period for which the contributions have been made to the provident fund account and not the period for which the provident fund account is maintained which determines the taxability of withdrawal of balance from provident fund account. Please note interest credited for the period during which no contribution are made to the EPF account become taxable in your hand.
(Views expressed by the tax/investment expert are his/her own)