Income taxable or not if deducted us 195 in 26as

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This query is : Resolved

JAYESH R SHAH (Querist)

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)

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)

07 November 2014 it means it right to taxabale 195 income at normal slab

Nikhil Kaushik

Nikhil Kaushik (Expert)

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)

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)

07 November 2014 under which article of the DTAA you offered this income?

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