Is it fair to club the Gross overseas Salary of a person in India WITHOUT considering deductions

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Amitabh (Querist)

21 March 2023 Is it fair to club the Gross overseas Salary of a person in India WITHOUT considering deductions, expenses or allowances of the foreign jurisdiction?

Amitabh gets a full-time employment offer in Hong Kong via employer letter dated 23 Sep 2016 but due to delays in official procedures in his employer's office, he departs from India on 9 Nov 2016, thus staying in India for more than 182 days

His Gross Income in Hong Kong from Nov 2016 to Mar 2017 is approx Rs 45 lacs. However, after deductions and allowances in Hong Kong, the taxable income is Only Rs 5000 approximately.
The tax on gross income of Rs 45 lacs in India will be approx Rs 15 lacs much more than his net or taxable income. Hence it seems that the law is outdated to include only Gross income for clubbing purposes of staying in India by few days.

Is there any provision which allows exemption to Amitabh to not report this gross income in full or part?
Was it mandatory to disclose overseas bank account in 2016-17?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

22 March 2023 1. Your status being ROR, your total global income was taxable in India.
2. You had received Salary Income from Hongkong employer. Under salary income head your personal expenses are not deductible. Had you received any allowance for such expenses, it could have helped you for such deductions.
3. Any tax payable in the country can be adjusted against tax liability, provided required forms filled in time.
4. Yes, for ROR declaring all the bank accounts, including foreign bank account/s is mandatory.

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