20 February 2012
My friend have received signing amount from the company facebook in india in financial year 11-12 with a condition that if he does not join the company then he has to refund the signing amount.He is to join the job from October 2012 in USA.I want to know the taxability of the signing amount whether it is taxable in India or USA and If taxable in India then in which year and whether USA will provide the credit of Tax Paid in India.
20 February 2012
read Sec 9(ii) Income which falls under the head "Salaries", if it is earned in India;
Explanation : For the removal of doubts, it is hereby declared that income of the nature referred to in this clause payable for service rendered in India shall be regarded as income earned in India.
In my opinion this will not be income deemed to accrue or arise in india therefore not taxable. expert opinions are invited.
CAclubindia
