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Taxability in india

Shubham Kansal (Student CA Final ) (34 Points)

17 February 2016

Mr. A received an amount of Rs. 80000/- per month as salary from US co (situated in US) in India, US co also reimbursed expenses incurred in India by Mr. A, what is the tax liability of Mr. A for the assessment year 2015-16.

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Swami Ayyappa Nuli (TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER) (1372 Points)
Replied 18 February 2016

As per Income tax act,1962, Place of employment is place of accrual of salary. Since he employed in India, his gross pay of Rs.80,000 p.m is Indian Income and taxable at normal rates as applicable. Expenditure reimbursed are in connection with employment in India, hence it is also taxable as salary( If any exemption for allowance is allowed under the head salaries then such allowance shall be available)