TDS on salary to a Foreign Branch employee who is resident
This query is : Resolved
04 February 2021
Hi,
We have transferred one of our employees to our UAE Branch office and have executed a fresh employee agreement with her in foreign currency. But she is an Indian resident as per IT act for FY 2021 (spent >182 days in India). Wanted to check if TDS is applicable on the salary paid to her foreign bank account for the services rendered to the foreign branch office.
Thanks,
Himanshu
We have transferred one of our employees to our UAE Branch office and have executed a fresh employee agreement with her in foreign currency. But she is an Indian resident as per IT act for FY 2021 (spent >182 days in India). Wanted to check if TDS is applicable on the salary paid to her foreign bank account for the services rendered to the foreign branch office.
Thanks,
Himanshu
04 February 2021
No TDS applicable if payment is made by foreign branch.
15 February 2021
Thanks for the quick revert CA R SEETHARAMAN but isn't any income earned by a citizen taxable in India?
15 February 2021
This income is taxable in India file ITR and pay taxes. TDS not applicable if salary is paid by foreign branch to foreign bank account.
16 February 2021
Better to deduct tax as payment is made to Indian resident.
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