Income Tax Query - Salary

I want clarity on the following:

My client is a private limited company. He wants to deploy a manager who will travel overseas for work. He will be provided salary. Also, the employer is willing to provide accomodation to him as he may have to stay there for few days or Months.

 

So, what will be taxability of salary in hands of manager if he is a resident and in case he becomes a non - resident due to extended stay beyond 182 days.

Also, what will be the TDS deductions in case of resident and NR and under which section?

Will the private limited company get the expenses as business expenditure?

 

Pls advise.

Replies (2)
Quick Summary
This discussion clarifies the income tax and TDS implications for a manager working overseas for a UK private limited company. It covers salary taxability for both resident and non-resident managers, including TDS deductions under Section 192. The advice also confirms that salary expenses are generally allowable as business expenditure for the company, provided tax compliance is met. Specific guidance on accommodation provided overseas is also addressed.

Taxability of salary in hands of manager: Resident: - Salary is taxable in India - Taxed as per income tax slab rates - TDS deductions under Section 192 (Employee's tax deducted at source) Non-Resident (NR): - Salary earned in India is taxable in India (regardless of residency) - Taxed at 30% flat rate (plus surcharge and cess) - TDS deductions under Section 192 (Employee's tax deducted at source) Note: If the manager becomes an NR, the company may need to obtain a tax clearance certificate before making payments. TDS deductions: Resident: - Under Section 192 (Employee's tax deducted at source) - As per income tax slab rates NR: - Under Section 192 (Employee's tax deducted at source) - At 30% flat rate (plus surcharge and cess) Business expenditure for private limited company: - Salary expenses are allowed as business expenditure under Section 37(1) - Subject to TDS deductions and tax compliance Please consult a tax professional or chartered accountant for specific guidance and compliance requirements.

And How will we treat the following:

Accommodation provided by the employer to employee in overseas country for his stay

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 04 September 2026
Accounts Executive

Hema Yashwanth & Associates

Chennai

B.Com

View Details
Company
20 September 2026
Semi Qualified CA

Navin & Associates

Mumbai

CA Inter

View Details
Company
19 September 2026
CA/Semi-CA/BCom

Pravin Sarvaiya

Mumbai

CA Inter

View Details
Company
30 September 2026
Senior Accountant

Codeboard Technology

Chennai

B.Com

View Details
Company
08 September 2026
Audit Executive

Thammana & Associates

Srikakulam

B.Com

View Details
Company
19 September 2026
Finance Manager

Mugdha Art Studio

Hyderabad

CA

View Details
Company
15 September 2026
Client-site CA associate

Aditya Muley and Co

Mumbai

CA

View Details
Company
ARTICLESHIP 30 September 2026
CA Article Assistant

CA Suraj Garg & Associates

New Delhi

CA Final

View Details