If you're working remotely from India for a UK intergovernmental organisation and are exempt from UK tax, your income is still taxable in India as you are an Indian resident. You can claim relief for the 'internal tax' deducted by your organisation when filing your Indian Income Tax Return (ITR). To do this, you'll need to file Form 67 before submitting your ITR 2.
07 June 2021
I have been remotely working from India at an intergovernmental organization in the UK. In the UK I am exempt from paying taxes to the UK government on this income due to the organisation's agreement with the UK government, but some "internal tax" is deducted by the organization. I have lived in India the entire time due to the pandemic. Is this income taxable in India? Are there any exemptions I can claim on the income considering that I pay the internal tax and the taxation is exempt in the UK?
08 June 2021
You are resident of India, so this income is taxable in India. The internal tax paid is in the nature of tax on income tax relief can be claimed while filling ITR in India.