expenses deducted from foreign salary ??

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jenil (Querist)
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26 July 2010 I am currently employed in a foreign country by foreign co. I have earned 14 lacs as salary income from this foreign co. from july 09 to march 2010.

on searching this forum ….

I think my foreign income of 14 lacs will be taxed in India bcos of residence ….

I want to know ..whether I can deduct my rental & travelling expenses which I have beared & paid ( no allowance or reimbursement received from foreign co. ) in this foreign country from my earnings of 14 lacs …. and then present net income to be taxed in India or my entire amount of Rs. 14 lacs will be taxed in India ??

Company also deducts compulsory social contributions such as unemployment insurance, pension fund , security insurance , Withholding tax …..

Can I deduct these contributions from my foreign salary and present net salary in
Indian I.T. return OR

My Gross salary received in foreign country will be taxable in India and I get no credit of expenses like rent paid , traveling exp , social contributions , tax deducted

Please any of the experts could answer this

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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31 July 2010 Dear Jenil,

As you are an Indian Citizen, and left India for employment purpose your status from Indian Income Tax point of view is that of a Non Resident as you have not been in India for 182days or more.

Income arising and being received out of India is not taxable in the case of a Non Resident.

Hence you need not to worry at all.

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