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Tax deducted in India and Malaysia

Varma (Senior Process Executive) (305 Points)

28 June 2023

If a person worked 8 months in India and tax deducted for that period and have from 16 for the 8 months and he joined Malaysia company and doing work from home from India for the rest of 4 months and tax has been deducted by the Malaysia company for the 4 months. My questions are

Is it necessary for the person to include the tax deducted by the Malaysian company in their Income Tax Return (ITR)?
Which ITR form should the person file, and where should they report the tax deducted by the Malaysian company in their return?

Thanks in Advance

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5 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160342 Points)
Replied 28 June 2023

1. He has to file ITR 2.

2. He need to offer aggregate income including salary of Malaysia firm in his ITR.

3 He can claim the refund of tax paid to Malaysian authority in his ITR,

4. You will be required to submit Form 67 to claim credit of foreign tax paid in a country or specified territory outside India, before filing ITR.

Varma (Senior Process Executive) (305 Points)
Replied 28 June 2023

Thank you so much sir. Actually he received his pay under Technical fees under Section 109B of Malaysia Income Tax Act 1967 with Withholding Tax Rate of 10%. Does Malaysia income need to be shown under Salary or Business income? If business income need to File ITR 3 or ITR 4?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160342 Points)
Replied 29 June 2023

Under PGBP head. File ITR 3.

Varma (Senior Process Executive) (305 Points)
Replied 29 June 2023

Thank you so much sir, but tax payable amount will a raise right while filling ITR 3 after adding receipts from Malaysia company as PGBP head? Does he need to pay tax on it in India?