UK Income
This query is : Resolved
18 July 2011
Hi,
I was a NRI for last 5 years. I'm moving back to India for work related activities. I will be loosing my NRI status for this financial year. I will be getting paid in both UK and India. I'm aware that I have show my world wide income while filing the papers for this year. I don't have any idea about Double Taxation avoidance laws. I read through various pdf's from the Income tax website but can't find the answer I'm looking for. Can anyone please try to help me
My income in the UK is taxed and National insurance paid there. When I show my Uk income, do I get taxed again here or will I just pay the tax for my India income ? If I'm taxed again, will the double taxation avodiance law be effective? Will I be able to reclaim my UK taxes and National Insurance? Any ideas will help
Thanks
I was a NRI for last 5 years. I'm moving back to India for work related activities. I will be loosing my NRI status for this financial year. I will be getting paid in both UK and India. I'm aware that I have show my world wide income while filing the papers for this year. I don't have any idea about Double Taxation avoidance laws. I read through various pdf's from the Income tax website but can't find the answer I'm looking for. Can anyone please try to help me
My income in the UK is taxed and National insurance paid there. When I show my Uk income, do I get taxed again here or will I just pay the tax for my India income ? If I'm taxed again, will the double taxation avodiance law be effective? Will I be able to reclaim my UK taxes and National Insurance? Any ideas will help
Thanks
19 July 2011
HAD U GIVEN DATA ABT LAST TEN YEARS THEN A PROPER REPLY COLUD HAVE BEEN GIVEN
FURHTER U HAVE NOT SHARED DETYAILS OF UR UK INCOME LIKE THE SOURCE , NATURE ETC
CA MANOJ GUPTA
JODHPUR
09828510543
FURHTER U HAVE NOT SHARED DETYAILS OF UR UK INCOME LIKE THE SOURCE , NATURE ETC
CA MANOJ GUPTA
JODHPUR
09828510543
19 July 2011
Hello,
I moved to UK in 2006 and was working there until this month. I'm currently in India working as a Director of a Indian company owned by my UK company. I'm a normal employee in UK payroll and in India as a Director. Thus I get paid in both countries (about 70% of salary in UK and rest in India).
Its like I'm dupted from UK to India to support the business. I still hold valid UK visa permit and will travel occasionally but not more than 100 days in a year from now on.
Please can you share your view on this.
Thanks
I moved to UK in 2006 and was working there until this month. I'm currently in India working as a Director of a Indian company owned by my UK company. I'm a normal employee in UK payroll and in India as a Director. Thus I get paid in both countries (about 70% of salary in UK and rest in India).
Its like I'm dupted from UK to India to support the business. I still hold valid UK visa permit and will travel occasionally but not more than 100 days in a year from now on.
Please can you share your view on this.
Thanks
02 August 2025
Sure! Here’s a clear explanation for your UK-India tax situation as a returning NRI:
---
### 1. **Residency & Worldwide Income**
* Since you are moving back and losing NRI status, for the financial year you become a **resident in India**, your **global income (both UK + India salary)** is taxable in India.
### 2. **Double Taxation Avoidance Agreement (DTAA)**
* India and the UK have a **DTAA** to prevent the same income being taxed twice.
* You **won't be taxed twice on the same income**, but tax paid in the UK can be claimed as a **credit against your Indian tax liability** on that income.
### 3. **How to show income and claim credit?**
* **Report full UK income** in your Indian tax return under the appropriate heads.
* Declare the **tax paid in the UK** on that income.
* Claim **foreign tax credit** (FTC) for UK tax paid under DTAA provisions (Section 90 of Income Tax Act).
* The credit is limited to the amount of Indian tax payable on the same income.
### 4. **National Insurance Contributions (NIC)**
* NIC paid in the UK is **not deductible or creditable** against Indian income tax because NIC is a social security contribution, not income tax.
* You pay NIC in UK separately and cannot claim this in India.
### 5. **Will you get refund of UK taxes or NIC?**
* No, because those are paid to UK authorities.
* You can only claim tax credit in India for the **income tax paid** in the UK, not NIC.
### 6. **Practical Steps**
* Maintain proper documentation of UK salary and tax deducted.
* File Indian Income Tax Return showing:
* UK income under **“Foreign Income”**.
* Indian income under respective heads.
* Foreign tax credit in the schedule for relief under DTAA.
* Consult a tax professional to calculate exact credit and ensure compliance.
---
If you want, I can also help draft how to report this in your ITR or prepare the tax credit calculations. Would that help?
---
### 1. **Residency & Worldwide Income**
* Since you are moving back and losing NRI status, for the financial year you become a **resident in India**, your **global income (both UK + India salary)** is taxable in India.
### 2. **Double Taxation Avoidance Agreement (DTAA)**
* India and the UK have a **DTAA** to prevent the same income being taxed twice.
* You **won't be taxed twice on the same income**, but tax paid in the UK can be claimed as a **credit against your Indian tax liability** on that income.
### 3. **How to show income and claim credit?**
* **Report full UK income** in your Indian tax return under the appropriate heads.
* Declare the **tax paid in the UK** on that income.
* Claim **foreign tax credit** (FTC) for UK tax paid under DTAA provisions (Section 90 of Income Tax Act).
* The credit is limited to the amount of Indian tax payable on the same income.
### 4. **National Insurance Contributions (NIC)**
* NIC paid in the UK is **not deductible or creditable** against Indian income tax because NIC is a social security contribution, not income tax.
* You pay NIC in UK separately and cannot claim this in India.
### 5. **Will you get refund of UK taxes or NIC?**
* No, because those are paid to UK authorities.
* You can only claim tax credit in India for the **income tax paid** in the UK, not NIC.
### 6. **Practical Steps**
* Maintain proper documentation of UK salary and tax deducted.
* File Indian Income Tax Return showing:
* UK income under **“Foreign Income”**.
* Indian income under respective heads.
* Foreign tax credit in the schedule for relief under DTAA.
* Consult a tax professional to calculate exact credit and ensure compliance.
---
If you want, I can also help draft how to report this in your ITR or prepare the tax credit calculations. Would that help?
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