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Clarification on ftc
Can some one help me in resolving the below situation.
One of my friend with resident status worked in UK for 2 months, received salary and also form p60 for the tax deducted as per their tax provisions. Now while filing the ITR here, how to claim the tax deducted there. He has income (salary)in India also and the TDS deducted is matching with form 26AS. This is for AY 14-15
Replies (2)
Since your friend is resident in india - his world income is liable to tax.
Since there was TDS deducted on UK income - TDS credit is allowable in India.
To summarise - TDS claim = TDS of india + TDS of UK (avg rate working)
How to compute TDS claim of UK - its a illustration
Indian Income - 510000
Forign Income - 110000
Total Income - 620000
Deduction - 133000
Taxable Income - 487000
Tax + Cess - 24411
Avg rate of tax in india - 24411 / 487000*100 = 5.0125%
Avg rate of tax in foregin - 11000/110000*100 = 10%
Hence rebate u/s 90 relief = 110000*5.0125% = 5514
Tax payable = 18897
Less TDS = xxxxxxxxxxxxxx
Refund = xxxxxx.
i agree with the above answer.
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