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Is Salary Received in Germany is taxable in India

26 August 2010

I work for a Indian Company and has been posted to Germany from 01-SEPT-2009 to 31-MAY-2010. I receive the salary in Germany and I had paid all the required taxes in Germany for the salary received in Germany. In this deputation period, I had not received any salary in India.

Now my questions are

1. While submitting the Tax Return for the financial year 2009-10, Do I need to declare my income in Germany.

2. For the next year, do I need to declare the income received for the month of APR and MAY, which is received in Germany?

Please reply

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11 Replies

Manoj BG (Tax Professional and in Service) (1795 Points)
Replied 26 August 2010

Dear Chintamani,

U'r total stay in india during PY 2009-10 is 212 days and as such, as per section 9, if the indian citizen or person of indian origin leaves india for employment purpose out of india, he will be resident in india if his total stay in india is not less than 182 days during the relevant PY, otherwise it will be called as non resident.

Thus, during PY 2009-2010, since u'r total stay exceeding 182 days, u'r Non resident for Income Tax Act.

In Case of Non resident, any income received and accrued outside india is not chargeable to tax india. Thus, U'r Income for PY 2009-10 accrued and received in Germany need not be tax in India. further, U even don't have to declare that income in the IT return.

For PY 2010-11, U have to determine u'r residential status as per the criteria mentioned in PARA 1. If u r Resident and ordinary resident, U'R WORLD INCOME would get taxed in India irrespective of origin of income.

Regards,

Manoj

NITIN BHATIA (CA FINAL) (188 Points)
Replied 28 September 2010

if you are resident in india not less than 182 days (subject to certain condition) than income earned by you is taxable in india.

vinod jain (Learner) (40 Points)
Replied 29 September 2010

As you were outside for the purpose of employment for 212 days i.e. more than 182 days, you will not be considered as a resident for the relevant assessment year

Amogh (Service) (34 Points)
Replied 22 October 2010

For P.Y 2010-11, try to maintain your stay outside india for a period of 184 days or more,(less than 182 days in India), to enjoy non-resident status, else your salary for April and May would be again taxable in India

sajay kumar (IPCC STUDENT) (162 Points)
Replied 22 October 2010

as you are stayed in india approxmately for 150 days( not exceeding 182) days you are nan resident for income tax purpose. so income accrued in germany is not taxable.

MAHENDRA KUMAR BAGRECHA (FCA) (1402 Points)
Replied 23 October 2010

I agree with all above views

work is worship (Service) (2728 Points)
Replied 24 October 2010

Hey agreed to all ur views, what if he had received the salary in India during his deputation to Germany.

What will be the tax complications.

Amogh (Service) (34 Points)
Replied 31 October 2010

General Rule: If a Non-resident receives(not remits) foreign income in India it is taxable in India.

Thus if he receives an income in his regular A/c (not NRE or NRO) it would be taxable.

dinesh (B.com,CS student) (169 Points)
Replied 03 November 2010

agree with nitin

kamesh (CA FINAL) (29 Points)
Replied 05 July 2012

is there any particular section under i.t act exempting such income ? or

that income is not taxable by the way that it is ouside scope of section 5 of I.T Act ?

nitin (na) (22 Points)
Replied 16 June 2019

Point.1-(For PY 2010-11, U have to determine u'r residential status as per the criteria mentioned in PARA 1. If u r Resident and ordinary resident, U'R WORLD INCOME would get taxed in India irrespective of origin of income.)

As per Point.1 if i am ROR then can i get relief under DTAA for world income?