1. The Residency Tightrope
Since Qatar levies no income tax, your primary tax risk is accidentally becoming an Indian Tax Resident.
2. The "Deemed Resident" Trap
Section 6(1A) of Indian IT Act
Because you are not liable to tax in Qatar (due to domestic tax laws), you fit the criteria for a "Deemed Resident" of India if your Indian Income exceeds ₹15 Lakhs.
The Triggers
- • Indian Citizen.
- • Indian Sourced Income > ₹15 Lakhs.
- • Not liable to tax in Qatar (0% Tax).
The Impact (RNOR)
You become Resident but Not Ordinarily Resident (RNOR).
Safe: Qatar Salary remains tax-free in India.
Risk: Income from a business controlled from India becomes taxable.
3. End of Service Gratuity (EOSG)
Qatar Labor Law (Article 54) mandates a gratuity payment upon termination/resignation. This is often the primary retirement corpus for expats.
Calculation Rule (Basic Salary)
- First 5 Years: 3 Weeks (21 Days) Basic Salary per year.
- After 5 Years: 4 Weeks (28 Days) Basic Salary per year.
- Requirement: Minimum 1 year of continuous service.
Taxability in India
If received while you are a Non-Resident, this is a capital receipt abroad and Not Taxable in India.
Receive it in your Qatar bank account first.
Hypothetical Accumulation (Basic Salary: 10,000 QAR)
4. Income Stream Matrix
Qatar Salary
👷Qatar: 0% Tax.
India: Exempt.
NRE Interest
🏦Qatar: 0% Tax (No tax on foreign income).
India: Tax-Free (Section 10(4)).
NRO / Rent
🏠Qatar: 0% Tax.
India: Taxable at slab rates / TDS 30%.
The Stability Peg
The Qatari Riyal (QAR) is officially pegged to the US Dollar at a fixed rate of 3.64 QAR per USD (since 2001).
Unlike floating currencies, your QAR savings do not fluctuate against the global reserve currency, providing predictable wealth preservation compared to INR volatility.