Income tax on remittance

Tax queries 251 views 1 replies

Dear Experts,

I have stayed in UK between January 2014 and October 2014, and started working since April 2014.

In October 2014 due to maternity reasons, I have taken leave and retunred to India and now as I could not join the job back in UK I have submitted my resignation in November 2015( means I am employed since April 2014 till Nov 2015). I have few earnings from last year 2014 in my Bank in UK and my organization has deposited some more money from Bonus, Leave  encashment and other balance payments as part of seperation to my account in November 2015.

My questions are: Will the amount be taxable if I remit it to India now.

Some of the amount is from previous years earnings, will it be taxed.

As the amount is already taxed in UK, what are the options I have to reduce the tax in India.

Please advise,

Thanks in Advance.

 

 

Replies (1)

Dear Sir/Ma'am

 

1. During the financial Year 2014-15 your residential status was "NR" as your total stay in India was less than 182 days as you mentioned above.

 

2. And per section 6 of Income tax act 1961 the persons who leaves India for the purpose of employement shallbe treated as Non-Resident if his/her total stay in india is less than 182 days.

 

3. So Income Earned during the financial year 2014-15 shall be tax India only when it directely reaceived in india in that perticular year.

 

4. During the current financial year (2015-16) the Income earned in UK from Apr-2015 to Nov 2015 and which is remit to India in the same FY shall be treated As Deemend Income and will be taxed in India.

 

5. The Taxes Paid in UK you can clain DTAA benefit under section 90/91 of Income Tax Act 1961.

 

For Further Assistance kindly feel free to call me during business hrs at +91 965 431 2612


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register