Income from employment in us

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

21 December 2013 One of my friend is in US from 29-july -2013 - 31-Oct-2013 and then 11-Dec-2013 - 31-Dec-2013.
SoI want to know whether he has to pay the tax in India or not for that period since withholding tax has also been deducted from his income earned in US and he has not got any salary for that period in India.

Please reply soon.

Thanks.

Rupesh Jain

Rupesh Jain (Expert)
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21 December 2013 he will be resident in current year
and if no tax paid in USA then he will tax on all income

CA Hardik Bunha

CA Hardik Bunha (Expert)
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21 December 2013 he is a resident but not ordinary resident.

your case attract DTAA provisions.

india and usa has agreement so your freind will not be liable to tax in india.

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Querist : Anonymous

Querist : Anonymous (Querist)

21 December 2013 Thanks Sir
but as per section 90(2), the provisions of agreement will apply if they are beneficail to the assessee.If the Income Tax Act is more beneficial to the assessee, then the income tax apply.

1st Question:
Whether any rate is specified in DTAA with US on the basis of which i can say that either income tax rate or DTAA rate is applied which ever is more benefical.

2nd Question:
Is the Income from US is required to be disclosed in Income tax return even though the tax is alredy paid by him in US.

Please clear my Confusion.

Thanks!

@VaibhavJ

@VaibhavJ (Expert)
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22 December 2013 Hi

Yes, he has to opt for beneficial rate to him.

Also he has to show both income in his ITR.

Thanks//VaibhavJ

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Querist : Anonymous

Querist : Anonymous (Querist)

23 December 2013 Thanks sir
But from where may i get the rate specified in DTAA and
If both income is disclosed in ITR then where i can show the tax paid in US and while filing ITR tax is computed automatically so how i can submit the tax on the basis of more beneficial aspect(DTAA and Income Tax rate)