Income Tax Retrurn for Foreigner

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Mohammad Ayub

Chartered Accountants

33 Points Joined August 2007

A foreign national is in India on business visa for the whole financial year 2006-07. He does get his salary (in his home country) from his company situtated out side India. All his expenses in India is borne by the company. However, he does not have a employment visa.

a. Should the person file Income-Tax return?

b. Should he show his income from salary?

c. If yes, what should be the amount (total salary he is getting in his home country)?

Mohammad Ayub

Replies (2)

Nitesh

Chartered Accountant

340 Points Joined August 2007

The payment made to the foreigner will be treated as payment to professional as he does not hold employemnt visa, hence the company is liable to deduct TDS at rate applicable. The amount on which TDS will be, the amount paid to him whether in India or in his home country and not for expenses borne by company for his expenses in india but will be liable fopr FBT.