Tax liability - Resident India, salary in UK

3043 views 7 replies

Hi All,

       I work for an UK company and I receive my salary in the UK in a UK bank account. However, I'm staying in India for more than 182 days in this financial year. I'm an Indian citizen. I would be thankful if anyone could answer my queries -

1) Is my income taxable in India and do I need to file income tax return in India?

2) If I need to file income tax in India , is it true that I will get credit of tax paid in UK under DTAA?

3) What will the method of tax calculation in India for this salary, if it is taxable here? Will the tax rates according to UK or India? Example, suppose I get 3000 Pounds every month. 600 pounds in deducted as income tax in UK every month and 600 pounds is deducted as National insurance(Similar to PF). 

Replies (7)

Sir put this Query in the Expert forum so tat u will get reply from Senior Members..

Hey ......

1. as u hv fulfilled the condition of sec 6(1) , u r a resident of india as per IT act. so ur income wil be taxed. u need to file return in india after taking the tax credit. If u r just salaried person, u need to file ITR-1

hi,

 

1) as you are resident in india, ur income should be taxable in India

2) yes you can get credit of tax paid to avoid double taxation provided in the laws of UK

3) your gross salary will be taxable after some allowable deductions like Allowances, Professional Tax etc.

@ Dheeraj - Thanks for clarifying.

Regarding 3rd point, what will be the allowable deductions. In UK we get only 1 gross salary, and income tax is deducted from it + National Insurance is deducted from it. e.g. I get 3000 pounds as gross salary pe rmonth, out of which 400 pounds is deducted as income tax and 400 pounds is deducted as national insurance. Will my taxable income in India be 3000 pounds OR 2600 pounds?

 

Your taxable income will be 3000 pound only as tax is PAYABLE ON GROSS SALARY.

Thanks for all the helpful replies. Can I claim HRA and other allowances like convenyance on the salary paid in UK in UK bank account for the purpose of filing tax in India? Note that I was in India all this time.

 

Appreciate all the help

The main question is where the services have been rendered.

 

also there can be also scenario of Resident but Not ordinary resident where , you can get lot of benifits.

 

Anuj

0-9810106211


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register