Taxation of salary income received from foreign employer

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 December 2013 Dear Expert,

Have taken an employment with a U.S company. It is currently not registered in India.
However I work from India and my employer pays my salary in Indian currency into my Indian account.

Given that my income is in the tax bracket, wanted to know on the tax implications.

1. How to pay my taxes and file returns in India. (can it be done thru payment of self assessment or advance taxes as the case may be)

2. Is my employer liable to deduct taxes at source on my salary income even if they do not have a branch/registered office in India.

3. If TDS have to be deducted on salary paid in India by the employer what is the procedure they need to follow.

4. Would my salary income be subjected to PF and other such deductions that are applicable in India given that the employee strength in India is below 5.

Thank you.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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19 December 2013 1 & 2. Yes
3. co needs to get reg and get a valid pan.

Querist : Anonymous

Querist : Anonymous (Querist)

19 December 2013 Hello Tushar,

Thanks for your reply.

Does this imply that it is mandatory of my employer to deduct taxes from my salary even though they have no other business connection in India.

Are they liable for penalty on default.

Would it not suffice if I pay my taxes in India thru self assessment and file the return as their employee.

Thank you.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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19 December 2013 Yes as the person is rec salary and as per sec 192 its mandatory to deduct tds.

no,as tds is mandatory prov and you cannot ignore it.

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