Dtaa of india and uk
This query is : Resolved
21 March 2015
I received a pay of Rs. 20000/- from April 2014 to Oct 2014 which amounts Rs. 1,40,000/-.
From November 2014 to Feb 2014, I was sent on deputation in UK through my company. for this 4 months, the UK holding company of my company paid me in 2500 pounds for each month. however no tax deduction is done. 2500 pounds X 4 months = 10000 pounds which is almost Rs. 10 lakhs.
So, whether I need to pay any tax in India considering the clauses in DTAA.
From November 2014 to Feb 2014, I was sent on deputation in UK through my company. for this 4 months, the UK holding company of my company paid me in 2500 pounds for each month. however no tax deduction is done. 2500 pounds X 4 months = 10000 pounds which is almost Rs. 10 lakhs.
So, whether I need to pay any tax in India considering the clauses in DTAA.
23 March 2015
As per DTAA provision assessee is required to pay tax lower of the tax rate in his country or in the country he earns the income. Since the income earned over there is exempt no requirement to pay tax.
23 March 2015
Thanks for the reply sir, can you clarify how the income earned in UK is exempt as i am a resident.
23 March 2015
Tax would be as given below. You had mentioned in previous message that there would not be tax deducted, that why i had told that no tax in UK.
23 March 2015
As per uk calculator Tax would be 323.33 pounds*4 = 1293.32 pounds or near about 120000.
23 March 2015
And In India tax would be on 10000 pounds or rs 928000. i.e 108770(app.). So you had to pay tax of Rs 108770(app.).
23 March 2015
Thanks for the clarification sir,
Can I claim any exemption on any part of the salary received from UK as the bifurcation in the salary slip includes Salary, London Allow, Accom Tx Allw, Living Tx Allw, Living Ntx Allw.
OR
I have to pay full tax on monthly gross amount received including all the above particulars.
Can I claim any exemption on any part of the salary received from UK as the bifurcation in the salary slip includes Salary, London Allow, Accom Tx Allw, Living Tx Allw, Living Ntx Allw.
OR
I have to pay full tax on monthly gross amount received including all the above particulars.
23 March 2015
For that you had to consult the tax consultant regarding the allowability of the expenditure mentioned above and to what extent. I can only tell you about the Indian tax Laws.
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