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Non resident

Tax queries 217 views 1 replies

Following are the details of an individual who went to UK on 09 July 2014 for employment

Salary earned in India Rs.470949/-

Interest earned in India Rs.437184/-

Deductions u/c VI-A Rs.114487/-

TDS deducted on interest income Rs.43978/-

TDS deducted on salary income Rs. 20994/-

Please let me know how much amount of tax the individual has to pay? and what is the tax burden on salary earned in UK by him in India? whether he will get any benefit in India on tax paid by him in UK?

 

Replies (1)

Dear Sir

 

As per section 6 of Income Tax Act 1961 your Residential Status for FY 2014-15 is "Non Resident".

As per explaination-I of section 6(a) of Income tax Act 1961 an Individual and citizen of India who leaves India for the perpose of Enployment in outside India the provisions of sub-clause (c) shall apply in relation to that year as if for the words "sixty days", occurring therein, the words "one hundred and eighty-two days" had been substituted.

 

And you total stay during the FY 2014-15 is less than 182 days.

So as per section 5 of Income tax act 1961 you need not to considered your foreign income as taxable in india.

 

Your Total Tax Liability in India will be.

Gross Income In India                        INR 908133.00

Less :- Deduction Chapter VIA         INR   114487.00 

Net Taxable Income                               INR    793646.00

 

Tax Payable                                           INR   83729.00

Add :- Cess 3%                                      INR     2512.00

Total Tax                                               INR    86241.00

Less :- TDS                                           INR    64972.00

Net Tax Payable                                    INR    21269.00

For Any further Assistance please feel free to call me during business hrs at +91 965 431 2612


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