24 March 2015
plz Reply.. a R & OR has earned certain income in USA in form of salary.. from april 13 to september 13.. federal income tax has been deducted in USA, as reflected in form W2..
and from october13 to march 14 salary is earned in india..
is the salary earned in USA is chargable to Income Tax in India??
24 March 2015
As per the provisions of DTAA. as stay in USA is less than 183 days hence the salary earned in USA is taxable in India.
22 (Payments received by Professors, Teachers and Research Scholars), salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State. 2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State, if : (a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in the relevant taxable year ; (b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State ; and (c) the remuneration is not borne by a permanent establishment or a fixed base or a trade or business which the employer has in the other State.
24 March 2015
As per provision of Income Tax Act,1961, if you are staying more than 180 days during previous year 2013-14, you will be resident in India and your global income would be taxable in India. However, federal taxes paid in USA shall be deducted from your tax liability. But tax shall be computed on global income, you may claim deduction of federal tax in your gross liability
CAclubindia
