Assistant Manager
106 Points
Joined November 2009
Dear Mr. Vicky,
Your are a Resident in India during the previous year.
I have read the Article 15 of DTAA and it seems that incomes earned will be taxed in the respective contracting states only.
As DTAA exists between Malaysia and India, in my opinion:
1. Either you may not have to declare your Malaysian Salary in India since it was already taxed 2. Or you can declare the Malaysian Salary and produce the evidence to Income Tax Officer when he demands it from you.
"Article 15 : DEPENDENT PERSONAL SERVICES - 1. Subject to the provisions of Articles 16, 17, 19 and 20, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State.
2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the otherContracting State shall be taxable only in the first-mentioned State if :
(a) the recipient is present in the other Contracting State for a period or periods not exceeding in the aggregate 183 days in any twelve month period commencing or ending in the fiscal year concerned; and
(b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other Contracting State; and
(c) the remuneration is not borne by a resident or permanent establishment or fixed base which the employer has in the other State or by a person carrying on independent personal services in the other Contracting State.
3. Notwithstanding the preceding provisions of this Article, remuneration in respect of an employment exercised aboard a ship or aircraft operated in international traffic by an enterprise of a Contracting State may be taxed in that State."
CAclubindia
