Taxabilty on foreign income

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 November 2014 Hello,

I am resident of India, will be receiving income from a US company as IT engineer(employee).

1. Is there any option to choose to deduct tax at source or pay by self assessment in India?

2. What would be the applicable tax in both the options?

3. What would be the beneficial way for me to save tax?

4. Besides this what all benefits or exemptions I can claim?

Would be thankful a lot to get any help!

Amol S Joglekar

Amol S Joglekar (Expert)
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24 November 2014 01.Since you are a resident of India and receiving salary in India, it is taxable in India.
02. If your Us Company is deducting any withholding tax from your salary, you can claim the same as double taxation relief while paying income tax in India.
03. You need to pay the tax in advance, 15/9/2014,(30%) 15/12/2014 (30%)and 15/3/2015(40%), if your income tax liability for the year is likely to exceed inr10000, after take into account the double taxation benefit if any

Querist : Anonymous

Querist : Anonymous (Querist)

24 November 2014 Thanx Amol,

Whether i can apply for Advance Ruling??

Amol S Joglekar

Amol S Joglekar (Expert)
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25 November 2014 Yes you can apply for that. But i dont think any advance ruling is necessary. The provision of double taxation relief is a quite well established provision.

Rupesh Jain

Rupesh Jain (Expert)
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25 November 2014 psl check company already deduct the tax or not, if yes then you take this tax and pay the advance tax .

Querist : Anonymous

Querist : Anonymous (Querist)

26 November 2014 Hello,

If I get to choose to pay tax by myself den should i show it under Salaries or under contract/Professional??

Which would be the beneficial way for me to save my tax from above options??

Amol S Joglekar

Amol S Joglekar (Expert)
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26 November 2014 You need to check the payment advice. If it is given as consultant, then you can very well show it under income from profession. But if the payment advice uses the word as remuneration, then you need to include it under salaries

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