Tax treatment - foreign citizen

Mr. XYZ is a Foreign Citizen who comes to India for a Project. He has been in India for more than 182 days during F.Y 2011-12. He receives $ 7000 per month as Professional Fees for the Project Work done in India, his Professional Fees are directly credited in to his Bank A/c which is in U.S.A. He does not have any Bank A/c  in India. He incurs all his expenses like Travelling, Mobile etc. through his credit card. 

1) What is the Tax Treatment in case of the above scenario?

2) If the Income is taxable, then can the Expenses incurred be claimed against the Professional Income?

 

Regards,

Devendra Kulkarni

Replies (2)

work done in India is taxable for NR or Resident. You may refer to section 10 exemption if any , viz 10(5) or 10(6)

In the given case, the foreign national is Resident indian for the purpose of Income tax act. For Resident, both indian income and foreign income is taxable.

For Resident Indian, all the normal provisions of the act will be applicable. Hence, he can claim deduction for the expenditure.

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