18 July 2015
Hi, I am going to stay for less than 183 days in UK & earn UK salary. Taxes are deducted from Salary in UK. No salary is earned in India for this period.
Q: Since I will have to pay tax in india on my total income (India + UK), would personal allowances paid in UK (£10,600/annum and considered tax free) be also to be included as taxable income in India?
If ans to above Q. is yes, how does Indian tax authorities balance of the difference in cost of living between India & other contries? I mean, how does the allowable deductions of India suffice for someone who has to stay in other country where there is huge difference in cost of living?
18 July 2015
Not to be included, but any savings on this amount will be taxable.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
18 July 2015
Hi, Thanks for your prompt response! The personal allowance is (according to me) a sort of non taxable slab (flat) that they call personal allowance. It dont need any expense claims to be made to mark it taxable/non taxable.
18 July 2015
I mean to say any savings on personal allowance only not any savings on salary. If your spending in UK for stay, food,travelling and incidental expenses exceed your allowance then it is fully exempted.