FOR THE MONTH OF JAN,FEB AND MARCH HE WILL BE REQUIRED TO PAY TAX ONLY TO USA GOVT...!!!

but as per below article on ET for FY2010-11, his status will be ROR for IT department in india. Hence the global income will be taxable in india. Can anybody clarify this?

https://economictimes.indiatimes.com/personal-finance/tax-savers/tax-news/double-taxation-avoidance-agreements-can-lower-tax-bill-for-nris/articleshow/2464226.cms?curpg=2

Thanks in advance.

Assuming he is Resident and Ordinary Resident for A.Y 2011-12, he is also liable to pay tax on income accruing or arising outside India. This will solve your first query whether he is required to pay tax on the salary income earned in Jan, Feb and March.

Secondly, if he is also required to pay tax in the source country (here USA) according to their tax laws, then there are two options:

1 If India has a Double Taxation Agreement (DTA) with the USA, then there must have been some sort of relief in this regard.

2. However, if such DTA does not exist, then Sec 91 will apply an he shall be entitled to the deduction on income tax payable, of a sum calculated on such doubly taxed income at the Indian rate of tax or rate of tax of the source country , whichever is lower or at the Indian rate of tax if both rates are equal.

Originally posted by : rahul
	My brother got transferred from India payroll of a MNC to USA payroll of same company wef 27/12/2010 (prior to dec-2010 he was staying in india only. ). His India salary is stopped and now he is getting paid in USD. Since he is earning in USD he will be paying tax to US government.   Please clarify    1. Since he'll be paying tax in US do he still have to pay tax in india whatever he earn in USD for JAN, FEB and MAR-2011 (FY2010-11).    2. If he need to pay tax in India, is there any way by which he can avoid US tax.    Here I'm trying to understand if on his JAN, FEB and MAR-2011 salary will he end up paying taxes to US government as well as the after tax income in US will be taxable in India??    Thanks in advance

why ppl love to post tricky and misleading questions only ???

JAN/FEB/MAR .......NO TAX DEDUCTED FROM USA PAYOUT - SO THE TOTAL INCOME IS TAXABLE IN INDIA .......

I am also quoting here the Article 16 of DTA  with USA according to which in your case only in India tax will be levied on salary earned by him in Jan, Feb and March.

Article 16

DEPENDENT PERSONAL SERVICES

1. Subject to the provisions of article 17 (Director's Fees), 18 (Income Earned by Entertainers and Athletes), 19 (Remuneration and Pensions in Respect of Government Service), 20 (Private Pensions, Annuities, Alimony and Child Support), 21 (Payments Received by Students and Apprentices) and 22 (Payments Received by Professors, Teachers and Research Scholars), salaries, wages, and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State.

2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if :

(a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in the relevant taxable year ;

(b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State ; and

(c) the remuneration is not borne by a permanent establishment or a fixed base or a trade or business which the employer has in the other State.

3. Notwithstanding the preceding provisions of this article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operating in international traffic by an enterprise of a Contracting State may be taxed in that State.

he shal be liable to pay income tax on the global income earned in Jan , Feb & mar. As ther exists a DTA btw US & India, he can claim relief under it