01 September 2012
Hello Dear Members, I Have a query, A person which was working with Indian Govt has been transferred to Tehran under same employment by organisation to give services there. He Remained there for three years in which he was receiving salary after ''SLAB DEDUCTION'' SO, he was not liable to pay any taxes in India.
Now he has returned to India From past two years and in the mean time he has received his due foreign allowance in India which is for the period relating to past services rendered in abroad.
Now kindly tell me that: 1) Is this foreign allowance taxable in India ? 2) What do we mean by Slab deduction?
02 September 2012
As per my understanding sec. 9(1)(iii) provides for income received by an individual from indian Government shall be taxable in india even if services are rendered outside India.
So kindly check your contention that "he ws not liable to pay taxes in India".
07 September 2012
Dear Sir Thanx for your reply, The statement that "He is not liable to Pay any taxes in India" is written on his form 16. Upto my knowledge there is a DTAA agreement signed with foreign govt. by Indian Govt that is why this is the case. And Foreign allowances also a part of salary and this salary relates to past services rendered abroad. So Logical I Think this will not form any part of income in India. Kindly Correct me if I am Lacking facts somewhere.
CAclubindia
