My friend works with a software company in India. From Nov 2012-March 2013, he was sent (transferred) to the Ireland on deputation and was paid salary there with appropriate TDS deduction. For the earlier months (March 2012 - Oct 2012) he was paid salary in India as usual.
For FY2012-13, he is required to pay tax in India even for the income received in Ireland (because he was a ‘resident’ of India under IT Act for that period) though the Irish authorities had already deducted tax when they paid his Irish salary. However, India has signed Double Taxation Avoidance Agreements (DTAA) with Ireland. So he can claim a relief in India on the doubly taxed income.
Questions -
1) how to cliam this relief on the doubly taxed income?
2) Is it mandatory to declare his Irish income in the ITR form (he has already paid the tax in Ireland)? Can he declare only Inidan income in ITR?
3) If he is using ITR2 form, in which currency he should state his Irish income (INR or Euro), as he is paid salary in Ireland in Euro currency? If he need to mention in INR then what should be the currency conversion rate applicable for caluclation?
4) There are 2 tabs in ITR2 related to foreign income (FSI & TR_FA). Here he has foreign income only from Salary. Where should he enter his Irish income out of these 2 tabs?
Thanks for taking your time out and reading the question in detail. I would really appreciate your help here to clear the above doubts.
CAclubindia
