Double taxation

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AJIT

Architect

25 Points Posted on 30 June 2012

I am working in UK for Indian MNC. I am here on work permit and not paid Indian salary duing my stay. I came to UK in January'12 and planning to go back to India in July'12. Since I am covering two financial years, I want to know my tax liablity in India for income earned in UK for each financial year. As per my offer letter, I am paid on nett model and any tax liablity in UK is taken care by my employer which means I am paid fix amount every month. In month of May I received p60 certificate from employer where in I can see my Income and tax details as on 5th April'12 but the tax paid seems to me very less as this is just 2% of income given in p60.

I want to know if this is ok to pay 2% tax in UK and do I need to pay any tax in India while filing ITR for 2012-13. If I have to pay tax in India then how much and how will this be calculated. If not would I need to disclose this UK income while filing ITR.

Thanks

Replies (2)

Arihanth Jain

Chartered Accountant

1226 Points Posted on 30 June 2012

For ITR 12-13, even UK income shall be included to tax in India as you are a Resident of India. However taxes borne abroad can be claimed as credit against the same.

AJIT

Architect

25 Points Posted on 30 June 2012

Originally posted by : Arihanth Kumar Jain G
	For ITR 12-13, even UK income shall be included to tax in India as you are a Resident of India. However taxes borne abroad can be claimed as credit against the same.

Hi Arihanth,

Thanks for your reply.

Is that mean I need to show abroad income and recalculate tax liability, irrespective of tax paid as per form 16, and claim abroad tax as credit return? In that case I will have to pay heafty tax amount while tax paid in UK is not that much. This way I will be paying tax in both countries, this does not sound good,