Taxation of nri salary

My friend works for TCS he was stationed at UK for 7 months and in Macau for 4 months Since India doesnt have DTAA with macau, TCS has deducted TDS for the whole 11 months salary (15 Lacs salary). Is the salary received in macau taxable in India ? What amount should be shown as salary income in ITR Form. ? Please help me out here. thanks in Advance.
Replies (7)

Dear Manoj,

 

According to Section 5 of The Income Tax Act, 1961:

"(1) Subject to the provisions of this Act, the total income of any previous year of a person who is a resident includes all income from whatever source derived which—

(a) is received or is deemed to be received in India in such year by or on behalf of such person ; or

(b) accrues or arises or is deemed to accrue or arise to him in India during such year ; or

(c) accrues or arises to him outside India during such year"

 

Hence all incomes of a resident of India will be taxable in India.

Also, if the same income is taxable abroad where the income accrues or arises, then the assesse can claim the benefit on the basis of DTAA with respective contracting state and also claim the relief u/s 90/90A.

 

Hence in your case, TCS is correct in deducting tax of income earned in Macau but the relief can be claimed.

 

For any further query PM or mail me :

CA Anubhav Jain

anubhavjain716 @ gmail.com

9868729930

 

Thank you very much sir.

But Anubhav his friend has stayed in india for less than 182 days in the previous year, also he left india for an uncertain period for employment purpose so he would come under the defination of NRI (refer the link: https://www.nritaxservices.com/who_nri_fema.htm) & in that case his income deemed,accured & received outside india wont be taxable in India...

So in that case, I guess only the salary received in macau will be taxable (since it was credited in Indian account) am I right in that?

yes.. bt that is my viewpoint.. better take expert's advise in this case... & do some R&D before coming to any conclusion.

Yhh okay, thanks for your time!

Agree with Sonakshi,

 

Kindly check the residential status before coming onto any conclusion. The advise I gave is from a residents point of view. 

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