Foreign Salary Income

ITR Filing 268 views 6 replies

Lila

Job

539 Points Posted on 06 October 2020

I shifted to Australia this year and has a PR for that country. Due to number of days of stay in India, I am a resident here. I have a PR of Australia, so there also I was taxed as Resident. Now my queries are:

1. Will my Australian income be exempt here (I was taxed there). OR

2. I will be allowed credit for my taxes paid over there. At lot of places I have been reading that to claim this credit, certificate is required from other country. How to get that because we get certificate at year end only which June in their case. So how to get a certificate till March end.

Replies (6)

prasad Nilugal

3924 Points Posted on 06 October 2020

Is India having DTAA ( Double Taxation Avoidance Aggement ) with Australia , Please check on Income Tax .gov.in web site .

ayusmita

Tax consultant

5895 Points Posted on 06 October 2020

Source of income

Lila

Job

539 Points Posted on 06 October 2020

Yes...it is there but I am finding it a bit confusing as it talks about exemption of foreign income as well as taking credit of taxes paid over there.

So wanted to know in my case, will the Salary income in Australia be exempt in India or I will be allowed credit for taxes paid over there..

I am having salary income over there.

prasad Nilugal

GST Practitioner & Accounts

15097 Points Posted on 06 October 2020

As you mentioned above you are resident Indian (182 or more in India ) , what is source of Income in India ?.

Lila

Job

539 Points Posted on 06 October 2020

Originally posted by : prasad Nilugal

As you mentioned above you are resident Indian (182 or more in India ) , what is source of Income in India ?.

Main source is Salary Income in India as well as Australia

Lila

Job

539 Points Posted on 08 October 2020

Is there any expert with a deep understanding of DTAA with Australia.

A plain reading Article 15 of DTAA says that for a person who is a resident of Australia, his salary over there will be exempt in India. However, now a person is a resident of India (stay more than 182 days) as well as Australia (PR and stay more than 182 days as per their tax calender). In such situation, if we also read Article 4, it says a person can be resident of only one of the country by applying certain tests.

Are we suppose to apply Article 15 along-with article 4 or can simply say that Australian salary is exempt in India?