I am in Malaysia on Work Permit, since Jan 15, 2023. I am on deputation for a project work by my employing co in India. Effective Apr 2023, my employer payroll has stopped deducting income tax in India, since I have stayed 0 days in India in the FY 2023-24. All my monthly salaries are paid in Ringitts and deposited in my salary account in Malaysia. If I go back to India on 1st Sep 2023, will I be taxed retrospectively in India for my salary incomes between Apr to Aug, even though the salary was paid to me in Malaysia in local currency and local bank account? Will there be any difference in scenario if I go back to India after 1 Oct 2023 (then I will be <180 days in India till end of Fy2023-24, assuming I am not deputed to any other country)?
Menu
Indian Income Tax Resident and taxation
1. Yes, as you will be considered Resident.
2. Yes, that will make difference as you will be NRI in that case.
Hi all, thanks for your comments. Very helpful. Since in my case, I am paying tax on the earnings from salary income between Apr to Aug, in Malaysia, can I claim benefits of DTAA when I file my tax return in India for AY 2023-24? If I am taxed in India, from Apr, with retrospective effect.
Yes, you can get rebate of tax paid in Malaysia, while filing ITR (along with form 67) when you offer your aggregate global income for assessment.
Working in Malaysia since 15 January 2023:
• For FY 2022-23 (1 April 2022 to 31 March 2023): if you were in India for more than 182 days (April 2022 to 14 January 2023 is about 289 days), you're resident. Malaysian salary for 15 January to 31 March 2023 is taxable in India, with FTC for Malaysian tax (India–Malaysia DTAA, Form 67).
• For FY 2023-24: if you stayed abroad for most of the year (in India less than 182 days, and you left for employment, so the 60-day rule doesn't apply), you're non-resident. Malaysian salary isn't taxable in India.
• Deputation by an Indian employer: salary paid in India for services rendered abroad is still foreign-source for a non-resident (not taxable in India).
Working in Malaysia since 15 January 2023:
• For FY 2022-23 (1 April 2022 to 31 March 2023): if you were in India for more than 182 days (April 2022 to 14 January 2023 is about 289 days), you're resident. Malaysian salary for 15 January to 31 March 2023 is taxable in India, with FTC for Malaysian tax (India–Malaysia DTAA, Form 67).
• For FY 2023-24: if you stayed abroad for most of the year (in India less than 182 days, and you left for employment, so the 60-day rule doesn't apply), you're non-resident. Malaysian salary isn't taxable in India.
• Deputation by an Indian employer: salary paid in India for services rendered abroad is still foreign-source for a non-resident (not taxable in India).
Recent Topics :
- TDS ON IMMOVABLE PROPERTY - PURCHASE FROM NRI &
- Query to Tax Garden tax consultant
- Subject: Urgent Assistance Required – TRACES
- Claiming business re-imbursements while filing GST
- E-waybill 14 Digit Numbring
- Non filing of MGT-14 for MD appointment
- HUF AFFIDAVIT vs HUF DEED - REQUIREMENTS & STA
- Free Pre-Filing Tool to Match GSTR-3B vs GSTR-2B (
- MR AASHOK KUMAR SHARMA
- NIC codes for FIRMS registration of entity
Related Topics :
CAclubindia
