Dtaa

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 October 2013 Hello,
I am working alone from India for a Japanese company based in Japan and they do not have office in India. We do not have any customers in India and my work is internet based.

I receive my salary as a foreign remittance. Company deducts taxes as per Japanese law as I do hold a residential address and valid work permit in Japan.

When I declare my foreign income for income tax India can I deduct my foreign expenses with valid receipts to calculate taxable income? such as 1.membership expenses for technical societies 2.additional educational expenses for continuing professional development.
This is apart from the taxes paid in Japan.
However there is a tax rebate for these expenses in the countries where I have spent this money.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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04 October 2013 Kindly note that for Indian tax law, you are a resident given that you have spent more than 183 days in India in the relevant year (based on the assumption that you have lived all the time in India)

1. You can claim deduction for expenses only if you are in receipt of professional fees or business income. In case you are in receipt of salary, expenses are not allowed.

2. Applicability of DTAA benefit and whether or not the said income can be considered as Deemed to accrue in India, needs to be explore. theoretically, the credit should be available under section 90. A firm opinion can only be given in this regard after a detailed study of the facts of the case.

Querist : Anonymous

Querist : Anonymous (Querist)

04 October 2013 Thank you very much

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