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Taxation of overseas salary

547 views 2 replies

sudip

Analyst

28 Points Posted on 07 July 2012

Hello Experts,

I work in a IT Company, in FY 2011-12, in total for around 4.5 months i was deputed in US under work permit Visa. During that time my payroll was shifted from India to US office ot the IT company. This is US based IT company.

I have filed returned in US for the tax paid salary given to me.

Now while filing returns in INDIA, do i need to show the above income which i had remitted to my INDIA BANK SALARY ACCOUNT. If yes, what kind of taxability will it attract, and any pointers on ITR form where i can plug the requisite nos pertraining to this category.

Thanks, Sudip.

Replies (2)

meabhijit

Project Manager

172 Points Posted on 12 July 2012

U will be considered as Indian resident since the stay was less than 182days in an year. This would imply that u would need to pay tax in India as per ur income slab. India and US does have double taxation treaty and so they will be applicable as well.

Gkumar

project manager

72 Points Posted on 13 July 2012

The tax treaty will lower your taxes in US. US will give you credit for Indian taxes paid. It is hard to find experts in Tax Treaty so good luck to you. Your tax bite will be hefty. In future try to have assignment exceeding 182 days. Then you would have been non resident in India and your global income will not be taxed in India. US does not tax global income of non residents.