Tax treatment for foreign exchange income

Tax queries 1160 views 1 replies

Hi

I am a consultant who has earned income in USD for fixed monthly consultancy fee to a foreign company. For part of the year, I was employed by a company. The country has DTAA with India and they have deducted 10% tax before payment to me.

Now, for filing income tax in India can I use SUGAM form? How would i prove that income tax has already been deducted from payments made to me?

finally, after getting 10% deducted by the foreign company do i still have to pay 33% income tax (i recollect vaguely difference between service tax and personal income tax)?

Thanks

Abhishek

Replies (1)

If your residential status is " resident and ordinarily resident" in India, you have to pay tax on your global income in India. 

But you may get the credit for the Tax already deducted in the other country (mean you need not to pay tax equal to the amount of tax already deducted).

You should ask for TDS deduction certificate or any relavant certificate as applicable in the other country towards proof of Tax Deduction from the amount received by you.

 


CCI Pro

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