Dear Friends,
One of my cousin is joined in U.S. MNC in India. U.S. MNC is having an office at India, but no any Operations in India. Hence, U.S. company is paying Salary to the Indian employees bank account directly (Wire Transfer) from U.S. Bank.
So, what is the procedures to receiving this Salary Income? What about Income Tax implications for this?
Menu
Tax Implications for Salary from Overseas
Replies (3)
It should be taxable as it is deemed to accrue in India
Can we avail tax exemptions like PPF, Insurance, Loan Interest etc, Medical Insurance etc,
From Indian employee perspective, he can consider going for volunatry PF registration. However, not sure whether US MNC would agree for it. He can check with his employer. On a separate note, there is high likelihood of US MNC having PE in India unless it is a Liaison Office. Further, since your cousin is Indian resident, his global income is taxable in India. Hence, in the instant case, the salary is taxable in India.
For claiming the exempt component of Salary, you need to check with the employer. If the employer provides those components, exemption for such should be available. Please take note of perquisite taxation as well.
Recent Topic
- Happy CA Day!!
- Share your proudest CA moment 🏆
- Gift recd from brother
- How to show Loan write off in DPT 3?
- Form 10E and Salary arrear
- LTCG U/S 54F. Sale of property plus sale of share
- Issue with ITR2 online utility for HUF
- TDS deducted by EPFO under wrong section
- Schedule SI in ITR-2
- What is the easy way to do CA- through foundation
Related Topics
CAclubindia
