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Filing returns on abroad salary

reachshri (DH) (32 Points)

13 June 2016

I would like to know the following on how to proceed in filing income tax returns

A an indian employee works in indian co from April 2015 - June 2015, On 01st July 2015 he leaves india for employment and thereon receives both onsite salary and indian salary. He had filed Foregin tax returns for the Year 2015 during Jul - Dec 2015 for his foregin salary income

Now my query is while filing Indian IT return, apart from indian income anything of foregin income to be considered. How it works, can any kindly clarify.

Secondly partly amount of foregin income is transferred into indian bank account. Because of this any disclosure required in IT returns.

Kindly help me clarifying my doubts

Thanks

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7 Replies

Ankit Patel (Consultant) (186 Points)
Replied 26 June 2016

If your Residential Status is Resident then Global income is taxable in india, but you can claim rebate under section 90/91, if you have paid taxes in abroad.

Anubhav (Chartered Accountant) (429 Points)
Replied 28 June 2016

Hi,

Indian taxation is a residence based taxation, where tax is levied on an assessee, keeping in mind the residential status. As highlighted by the above consultant, in case of an Indian resident entire global income is taxable in India, also he is eligible for relief of taxes paid abroad.

Now since your query is based on if your foreign income is to be reflected in your ITR. Then for that you need to refer Section 6, of the Income tax Act, where residential status is defined. Once it is clear as to what s the residential status , we can proceed with computing the income.

Secondly, about the query in relation to remittance to Indian bank, it will also depend upon your residential status. Kindly PM/ mail us in case of any further query.

Anubhav Jain

anubhavjain221 @ gmail.com

reachshri (DH) (32 Points)
Replied 05 July 2016

Thanks Could you pl update under what section & article of DTAA does salary income received abroad will come. ie. 90 or 90a or 91. The same is required to be filled in ITR2 for claiming relief

Ankit Patel (Consultant) (186 Points)
Replied 05 July 2016

it is depend on whether Foreign contry in which you have earn income.

If India has DTAA with foreign contry than rebate U/s 90 or if No DTAA exist then rebate available under section 91.

You have to read DTAA Agreement in which you have earn income.

reachshri (DH) (32 Points)
Replied 06 July 2016

Thanks. The country is USA and we have DTAA with the said country but i couldnt able to locate under which article does salary income comes. could u pl help me

Ankit Patel (Consultant) (186 Points)
Replied 06 July 2016

Read Artical 16 (DEPENDENT PERSONAL SERVICES) for claim rebate under Section 90.

You have to satisfied condition mention in Artical 16 for claim Rebate.

reachshri (DH) (32 Points)
Replied 15 July 2016

Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State, if : (a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in the relevant taxable year ; (b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State ; and (c) the remuneration is not borne by a permanent establishment or a fixed base or a trade or business which the employer has in the other State. 3. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operating in international traffic by an enterprise of a Contracting State may be taxed in that State.

This is stated.. I m still not clear, all these conditions has to be satisfied mutually?

My client is staying in us for the past 8 months and he's been employed by an Indian IT firm who has an PE at US and whos paying his salary.

Could you pl say how should i proceed