double taxation on salary income

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Querist : Anonymous

Querist : Anonymous (Querist)

02 February 2011 A person is employed in UK since July 2007 with a software company. Company in UK is a branch of an Indian company. During the F.Y. 2009-10, the said person received salary in India as well as in UK from the same company. UK branch has deducted income tax at source on salary received in UK as well as on salary received in India and has issued Form P60 to him. Form P60 is something similar to Form 16 which is issued by an employer in India. Indian company has also deducted income tax at source on salary paid in India and has issued Form 16 to him. This has resulted in double taxation on salary received by him in India. Can he claim relief u/s 90 of the Indian Income tax Act. During the F.Y. 2009-10 he has been out of India for more than 182 days. His status is that of a resident but not ordinarily resident.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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02 February 2011 If the person is an Indian Citizen, or of Indian Origin his status will be that of a Non Resident. Please check.

As there is a DTAT between UK and India, he will get refund on filing his refund for which he is legally entitled.

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Querist : Anonymous

Querist : Anonymous (Querist)

02 February 2011 Thanks for your reply. I agree with you. The person is an Indian citizen and left India in 2007 for employment outside India so his status is that of a non-resident. I have one more query in connection with this. The same person was not aware that income tax was deducted at source by UK branch office on Indian salary (the employer did not inform the employee) during the previous year 2007-08 and 2008-09 so he filed his tax return in India based on the form 16 issued by the employer. Their was a refund for the Previous Year 2007-08 and 2008-09 and he got the refund from the Income Tax Department. The person came to know after receiving the refund that branch office in UK had deducted tax at source on Indian salary also. Can the person make an application u/s 154 of the Income Tax Act and get refund for tax deducted at source for the P.Y. 2007-08 and 2008-09.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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03 February 2011 Under Section 154, any mistake apparent from records can be rectified.

In my view, in this case, the assessee has not produced the particulars of income and/or tds of his foreign income. So basically there is no record, with the department from which it can be gathered so.

I am not confident, but the remedy left for the assessee is Revision of Order U/s 264.

On this opinion of experts should be soughy for.

Querist : Anonymous

Querist : Anonymous (Querist)

04 February 2011 Many Thanks for your reply. Does it mean that the person should disclose salary received in UK and India as well as tax deducted in UK and India in ITR 1 and then claim relief u/s 90.

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