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Usa income , dtaa is prevaling , help me

sanjana dami (CA final student) (68 Points)

11 February 2016

Can anyone help me how to calculate tax and file return.

My brother has 10 months salary income ( $ 1,29,450 , which is approx 88,49,195.53 Indian Rupee) in USA and coming 2 month ( feb and march) in singapore and DTAA is prevailing in both the cases .

help me understanding what both of these DTAA is talking about tax on salary . and how i will file his return in april .

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9 Replies

shalini (CA) (525 Points)
Replied 11 February 2016

Did he stay in US for all these 10 months?

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sanjana dami (CA final student) (68 Points)
Replied 12 February 2016

no , about total 48 days he spend in india , in a gaps .

sanjana dami (CA final student) (68 Points)
Replied 12 February 2016

but he has a plan of comming in march for 2 weeks .

sanjana dami (CA final student) (68 Points)
Replied 12 February 2016

now since the tickets of both way are already booked by the company . his total days in india will cross 60 days , he'll be treated is RESIDENT .

therefore both of his income will be taxable in india also.

help me what to do

shalini (CA) (525 Points)
Replied 12 February 2016

Then he is non resident for A.Y. 2016-17 because he stayed in India for less than 182 days in financial year 201-16 so he doesnot have to pay any taxes on foreign income in India.

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sanjana dami (CA final student) (68 Points)
Replied 12 February 2016

But mam ,i find out that :

If an individual satisfies any one of the following conditions, he is said to be Resident in India for that financial year.

1. He is in India for a period of 182 days or more in that financial year
OR
2. He is in India for 60 days or more during that financial year and has been in India for 365 days or more during 4 previous years immediately preceding the relevant financial year.

AND my brother is clearly fullfilling second condition .

shalini (CA) (525 Points)
Replied 12 February 2016

In case you are an Indian Citizen and you leave India for employment outside of India or as a member of the crew on an Indian ship, in other words if you take up a job outside India the 60 days minimum period will be increased to 182 days so it means only first condition is applicable if indian citizen leaves india for employment purpose.

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