Taxation

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 July 2013 Hi,

I am an Consulting Engineer, Indian Resident.For my consultation, I received around Rs29Lakhs in the Fiscal year 2012-13( ending 31st March 2013).As I did not stay there for 180 days continuous, I am not a non-resident. This remittance is from Tanzania, and the With holding Tax of 18% is deducted at that end and I have an Indian income of Rs 4-5 Lakhs.No other unaccounted money.

My wife is a house wife, she files returns every year.

My tax consultant (CA) says I have to pay around Rs6 Lakhs as IT this year.

If I work as a consultant, I am told that I am eligible for some tax relief.

Can any one advise me, if eligible, I would like to take relief of that.

Appreciate an honest advise.

Warm Regards

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

20 July 2013 As per Double Taxation Avoidance Agreement with Tanzania -You will certainly get tax credit for the tax withheld in Tanzania and have to pay the short fall in tax, according to the Indian Income-Tax Act. Here, your income above 10.00 is taxed @ 30.9%.

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From professional income in India, you can claim certain office expenditure and Depreciation on vehicle at the advise of your consultant.
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Querist : Anonymous

Querist : Anonymous (Querist)

20 July 2013 Appreciate if I could know to what extent I can claim office expenses.

I do use local resources while generating that income.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

20 July 2013 On actual basis or on the basis of reasonable estimates, expenditure can be claimed. You have to maintain books of account also. The accountant in India are smart enough. You have to be cautious that nothing should be unreasonable.

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