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International taxation

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HARESH JAMBUCHA

Student CA Final

39 Points Posted on 04 April 2015

Hello experts,

My question is about taxation of international income.

My cousine brother is currently working in US (Arizona state) as computer engineer.Before 3 months he was working in banglore with TCS and now TCS sent him to work there on the same project.Currently he is working with another company which is tied up with TCS to run that particular project and that company X is paying my brother.He is going to work there atleast for 3 years.Besides this he is also receiving salary in India from TCS.

I think now my questyion is all clear.

Experts, can you please tell me in what way income from different company & country, keeping in mind residential status of my brother, will be taxed?

I hope my query will be resolved in every point as usual.

Thanking You.

Regards,

Haresh Jambucha

Replies (1)

J. K. Ratan

Compliance Advisor

629 Points Posted on 04 April 2015

Dear Haresh

As per section 6(1) and Section 6(6) of income tax act 1961: - The residential Status of yuor brother is "R-OR". (Resident-Ordinary Resident) in FY 2014-15.

And as per section 4 of income tax act 1961, Any income earned/received wether in India or outside india shall be tax in India.

However as per section 90 or 91 as the case may be you could obtain the benefit of DTAA signed with US govt. by India govt.

Any Federal tax paid in US can be claim as deduction from Tax Liability in India.