Salary from australia whether taxable in india

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This query is : Resolved

Nitesh Joshi (Querist)

31 January 2012 My client, Mr. X has worked in Australia for about 3 months during the FY 2010-11 and has received salary of Rs.4.50 Lacs and there is Tax Deducted at source in Australia and according the return has been filed there.
Now for AY 2011-12 i.e., FY 10-11 what should be the exact tax effect to be given as per Indian Income Tax Act, 1961.

Kindly guide me in this matter and also regarding the effect of DTAA if any applicable with Australia.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

01 February 2012 Tax Deducted in Australia will be considered for the purpose of tax credit.
.
In his income 4.50 lacs will be included.
.
Tax credit will be claimed IN RESPECT TO THE ABOVE-
A)AUSTRALIAN INCOME TAX PAID , OR
B)TAX ON SUCH INCOME APPLYING THE AVERAGE RATE OF TAX PAYABLE.
WHICH EVER IS LESS.
.
THE RELEVANT PORTION OF DTAA-
the amount of Australian tax paid under the laws of Australia and in accordance with the provisions of this Agreement, whether directly or by deduction, by a resident of India in respect of income from sources within Australia which has been subjected to tax both in India and Australia shall be allowed as a credit against the Indian tax payable in respect of such income but in an amount not exceeding that proportion of Indian tax which such income bears to the entire income chargeable to Indian tax; and

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Nitesh Joshi

Nitesh Joshi (Querist)

01 February 2012 Thanks for your guidance sir. I think I can now advise my client on this point. Again Thank you very much.