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Filing of income tax return for ay 2016-17

Abhay Laxman Gujar (tax consultant) (29 Points)

29 December 2016

If a person is employed in India for first 3 months and then-after he went to Australia for an employment. He was employed over their for the remaining period of the year. He filed IT Return in Australia for Australian income. His residential status is Resident since he satisfies both the conditions. Sir, advice me how to file return in India for Indian income. Whether foreign income will be clubbed in Indian income and get rebate of foreign tax paid in Australia. Pl. advice me in detail. Preferably by e-mail. adv.abhaygujar @ gmail.com

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7 Replies

ARJUN SINGHAL (CA Finalyst) (66 Points)
Replied 29 December 2016

I think Income earned in India is only taxable Income for Non resident hence austrailian income is not taxable.

ankita gandhi (student) (5908 Points)
Replied 29 December 2016

Both incomes are taxable in India for residents. If India has treaty with Australia then such income on which tax is paid, will be exempt in India or things as per treaty.

2 Like

RAKESH (Assistant executive manager) (24 Points)
Replied 29 December 2016

The person is Non resident since the person went to Australia for employment being he was not in India for 182 days in

RAKESH (Assistant executive manager) (24 Points)
Replied 29 December 2016

PY. Hence income received in India only taxable as he is Resident and not Ordinary Resident.

Radhey Shyam Jha (Student) (41 Points)
Replied 30 December 2016

please go through section 9 of income tax act, 1961 and also if both income are taxable in India then it is contradiction of DTA .

RADHESHYAM BHUTADA (STUDENT) (23 Points)
Replied 30 December 2016

As the residential status is ROR his global incoem will be taxable in india. further the return filed in austrilia will get the rebate in indian income...

A.Gopal (Partner) (63 Points)
Replied 30 December 2016

We need to get confirm that the assessee was a resident in India for AY 2016-17 for, you have indicated that he was in India only for the first 3 months.

Under Explanation 1(a) to Sec 6(1), he will be a non resident for AY 2016 -17 if he has been away from India for more than 182 days.

Once it is accepted that he is a non resident, the question of taxing his salary income will be as per DTAA between India and Australia.

Under Article 15(1) of the DTAA with Australia, if salary income in India for 3 months will be taxable only in India.

In case it is accepted that he is a non resident, then the Australian income need not be offered for tax in India under the same Article.