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About salary of resident

dbhasakararao (consultant) (64 Points)

30 June 2016

sir one of my client in last year he worked here ten months, and he sent abroad by company on deputation, last two month company paid salary in abroad after deducting tds in abroad country, at the same time in India, the company not paid last two months salary, but company shown in Form 16 last two month salary and deducted TDS, actually salary paid in abroad and tax deducted in abroad also, tax deducted in mother country and abroad company, how i can calculate

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2 Replies

Nihar Ranjan Rout (CA Final & CS Final) (577 Points)
Replied 30 June 2016

You will have to use relief criteria for taxes paid in the foreign country

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CA Harshal Totla (Chartered Accountant) (2229 Points)
Replied 01 July 2016

Firstly check whether that foreign co.has DTAA with India. If yes, then check what relief has been provided for doubly taxed salary income of a person( it is most likely that it will provide tax credit of taxes paid in other country on such doubly taxed income) after that file itr and claim relief as provided under the act and calculate tax on the balance income. However, where no DTAA exists, then unilateral relief method will apply as per section 91 under which he shall be entitled to the deduction from the Indian income-tax payable by him of a sum calculated on such doubly taxed income at the Indian rate of tax or the rate of tax of the said country, whichever is the lower, or at the Indian rate of tax if both the rates are equal. see example of calculation in this link /forum/how-to-calculate-relief-u-s-90-or-91-46098.asp