Query- International Taxation

Dear all

I have one Query.

Facts:

One of the employee of my client is a japanese and he is in India for the past 4 years that means he is resident in India.

Now he is going to retire and will recieve 10 Million Yen as Gratuity from the Parent Company. That Gratuity will be paid to him in his bank account in Japan.Nothing will berecieved in India.

His total tenure is 50 years with the Company. 46 years in Japan and 4 Years Continously in India.

Query:

Because that employee is a resident , how much gratuity recieved in Japan will be taxable in India. Is it full 10 Million Yen or it will be proportionate to his stay period in India.

 

Waiting for your reply


 

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Replies (1)
Hi Rahul, Status of the person in question shall be of "ROR" & accordingly his global income will be taxable in India. Exemption u/s 10(10) can be claimed. No need to do proportionate calculation based on the years served in india & outside since no such provision is there. My only doubt remains with the issue of "Dual residentship". What will happen if this person is also a "resident" of "JAPAN'...I am not sure or perhaps my question is wrong but I dont know what will be the treatment if at all it happens.

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