Foriegn salary and itr (Income Tax)

This query is : Resolved

sachin

( Author )
21 June 2012

Hi Experts,

Please guide how to include foriegn salary recevied for 3 months in Australian dollars ina foriegn bank account. components of the salary are:

1) Base Hourly
2) Initial Allowance
3) Advance Repayment
4) Health Insurance
5) LAHFA(Living Away from home allowance)
6) Paid By India
7) PAYG Withholding (I guess it is TDS in Australia)
8) Superannuation Gurantee

Assessee is Resident for Income tax purposes.

CA CS Amit S. Kedia

( Expert )
21 June 2012

You will have to file ITR 1 if there is no other income except interest income.
The amount will be converted into INR at the rate prevailing at the time of receipt of salary.

sachin

( Author )
21 June 2012

Thank you Amit for ur reply, but I wanted to ask which of the component will be merged to Indian salary.

(I am asking this because I have a doubt on some items whether they should form part of salary for example item no 5 Lahafa which is just like HRA in India)

Also if possible tell me the treatment of Item no 7 which is TDS in Australia.

CA CS Amit S. Kedia

( Expert )
21 June 2012

You will get the benefit of tax paid in australia under double tax avoidance agreement.
item no. 5 is also part of salary as amount received from employer is taxable under salary income.