Income taxable or not if deducted us 195 in 26as

This query is : Resolved

JAYESH R SHAH (Querist)
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07 November 2014 as per 26AS of teh assessee income us 195 shows of Rs. 35,00,000 and tds deducted on the same of Rs. 437500 @12.5% as the country of residence is UAE

return was filed for rent income of Rs. 130000/- as per 26AS and claiming refund on the same of Rs. 13000/-

now in assessment office want to show all income @ 30% and pay the balance tax @ 17.5% on 195 section income

whether action intitiated by income tax officer in right

Nikhil Kaushik

Nikhil Kaushik (Expert)
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07 November 2014 you need to present your case before the assessing officer, with the detailed computation of income and residential status.

JAYESH R SHAH

JAYESH R SHAH (Querist)
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07 November 2014 it means it right to taxabale 195 income at normal slab

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Nikhil Kaushik

Nikhil Kaushik (Expert)
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07 November 2014 It means you need to present your case properly. It is possible that AO May have treated you as a resident or that treaty benefits have not been granted properly...

JAYESH R SHAH

JAYESH R SHAH (Querist)
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07 November 2014 our client is non resident and tds has been deducted as per DTAA between India and UAE @ 12.5% of Fd interest income OF NRO account. We have offered the said income as under special rate of tax claimimg that our tax liability is restricted to 12.5%
But the assessing officer contention is that u should have offered it as normal income and tax should be levied as per normal slab
Since thier is no tax in Dubai though u have been given DTAA benefit but tax has to pay at normal rate. Is AO right in doing so ????????????

Nikhil Kaushik

Nikhil Kaushik (Expert)
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07 November 2014 under which article of the DTAA you offered this income?