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Salary earned outside india

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Therednose

Shifting

140 Points Posted on 17 September 2015

Hello,

I have a question on Income earned outside India. This is kind of a unique situation. For the purposes of taxation I am treated as a resident i.e. have spent more than 182 days in India - Hence global income is taxable. The country does not have a DTAA with India.

However, I am interested in finding out what is considered as Income for the purpose of taxaion in India.

- The salary earned will certainly be considered as an income

- If the employer pays for the employees relocation travel would that be treated as income

- If the employee has received a discretionary relocation allowance for shipping personal effects would that be treated as income

- If the employer provides temporary accomodation would that be treated as an income

- If the employer provides a temporary loan to the employee would that be considered a perquisite.

I look forward to any guidance in the matter.

Replies (1)

CA Kiran Sutrave

428 Points Posted on 17 September 2015

1. Salary will be taxable in India.

2. If the employer pays for the employees relocation travel would that be treated as income - Is this reimbursement of expenses. I think if it is not an allowance then you can provide the bills to the employer and take benefit of it. For example - if you receive Rs. 10,000 as relocation expenses and you provide bills of Rs. 8,000 to your employer towards relocation expenses then balance of Rs. 2,000 will be chargeable to tax.

3. If the employee has received a discretionary relocation allowance for shipping personal effects would that be treated as income - Any type of allowance is chargeable to tax until and unless it is specifically exempt as per the Income Tax Act, 1961 but I think the treatment will be same as mentioned above.

4. If the employer provides temporary accomodation would that be treated as an income - Yes as Rent Free Accommodation (RFA) is provided to you. It will be taxable as per the Income Tax Act, 1961.

5. If the employer provides a temporary loan to the employee would that be considered a perquisite - Yes.

This is my opinion others can contribute