One of my friend (Indian Resident) is employed with a Singapore based company and works out of India. He however receives salary in USD into his Indian bank account. His salary is divided into 1. Basic and 2. Other allowances. His income falls in tax bracket, he need advice on Tax implication
1. Tax is being deducted by Company as per Singapore law. Do the company still liable to deduct TDS u/s 192 as per India Income tax act? 2. How does employee gets the benefit of TDS deducted as per Singapore law? what document he will require from his employer for the tax deducted. 3. Under other allowances can he ask his employer to include tax exempted allowances like LTA etc. 4. Like Indian company give form 16 based on which return is filed by a salaried employee. Is there any form or certificate required from foreign company for filing the income tax return?
23 May 2019
1 Not required. 2 Tax deduction certificate required. 3 Yes you can request. 4 TDS certificate required from foreign company for filing the income tax return and claiming Tax relief by filing form 67.
If he is non resident the income is exempt from Indian taxation.