Tax on salary earned outside india on which tax alrady paid

1826 views 5 replies
Hi All,
I was staying outside India for the last 8 month(1 Apr 2012 to 30 Nov 2012) and i was transferring money from there to my account (in India) using my friend account (in Denmark). First i transfer from my account(In Denmark) to friends account (In Denmark) then my friend transfer it through his account (In Denmark) to my account (in India).
 
Kindly let me know do i need to get any sort of receipt, statement or affidavit from my friend for Income tax proof ?
 
I have one more query, Once he has transffered to his own account (in India) then from his account (in India)  into my account (In India). Do i need to take any sort document?
 
Thanks and regards
Manoj Kumar
Replies (5)
First, why don't you transfer your funds from bank account in denmark to bank account in india. Second,if it is a income esp. being a salary income earned or arised in denmark i.e outside india.then you are not liable to income tax laws in india. Third, if it is a income other than salary which is accrue or arise outside india and your are transferring that fund then in this case you have to obtain bank statement of both bank accounts i.e in denmark and in india.obviously, you would have your bank account statement with you reflecting transfer of such funds.
 
First, why don't you transfer your funds from bank account in denmark to bank account in india.

Second,if it is a income esp. being a salary income earned or arised in denmark i.e outside india.then you are not liable to income tax laws in india.

Third, if it is a income other than salary which is accrue or arise outside india and your are transferring that fund
then in this case you have to obtain bank statement of both bank accounts i.e in denmark and in india.obviously, you would have your bank account statement with you reflecting transfer of such funds.

Originally posted by : CA. Divya Kalra Mishra
First, why don't you transfer your funds from bank account in denmark to bank account in india.

Second,if it is a income esp. being a salary income earned or arised in denmark i.e outside india.then you are not liable to income tax laws in india.

Third, if it is a income other than salary which is accrue or arise outside india and your are transferring that fund
then in this case you have to obtain bank statement of both bank accounts i.e in denmark and in india.obviously, you would have your bank account statement with you reflecting transfer of such funds.

Thanks for the reply.

I do agree with you that since it is salary, I'm not liable to pay tax in India (in addition, the tax has already been deducted and paid in Denmark and there is a double taxation avoidance treaty between India and Denmark).

My question however is, should I still make any declaration of this income while filing the tax returns?

Subjec to provisions of India - Denmark DTAA, you may file Indian tax return and claim relief under section 90/91.  In ITR1 for AY 2012-13, the cell for claiming such relief is on sheet "income details" row 71

Originally posted by : CA. Divya Kalra Mishra
First, why don't you transfer your funds from bank account in denmark to bank account in india.

Second,if it is a income esp. being a salary income earned or arised in denmark i.e outside india.then you are not liable to income tax laws in india.

Third, if it is a income other than salary which is accrue or arise outside india and your are transferring that fund
then in this case you have to obtain bank statement of both bank accounts i.e in denmark and in india.obviously, you would have your bank account statement with you reflecting transfer of such funds.

Hi Divya, thanks for the reply. I was not able to open the account in a bank which allows the transfer abroad. I was getting entire income from my salary itself. I want to show the income into ITR -2 form(filling ITR-2 form from the last 2 year due to share market profit/loss ) so that it will help me to get the loan by showing the ITR V in coming days.Could you please let me know what are the columns will  be used to fillup the ITR form.

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