Is us salary income taxable in india for r&or?
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
20 July 2012
For PY 2011-12, I am a Resident & Ordinary Resident.
I was in US from 1st Jan'11 to 10th Aug'11 and earned Salary from US employer. I have paid my taxes on this Income in US.
I am in India from 11th Aug'11 till date and earned Salary from Indian employer. I have paid my taxes on this Income in India.
Question:
Is my US Salary Income (from April'11 to Aug'11) taxable in India?
Please consider these Reference details:
Article in ICAI Journal: http://220.227.161.86/23576august2011journal_106.pdf
Cases: AAR-287 ITR 462-british gas & 294 ITR 177 AAR
DTAA with US: http://law.incometaxindia.gov.in/DIT/File_opener.aspx?fn=http://law.incometaxindia.gov.in/Directtaxlaws/cbdt/dta/A1_USA.htm
I was in US from 1st Jan'11 to 10th Aug'11 and earned Salary from US employer. I have paid my taxes on this Income in US.
I am in India from 11th Aug'11 till date and earned Salary from Indian employer. I have paid my taxes on this Income in India.
Question:
Is my US Salary Income (from April'11 to Aug'11) taxable in India?
Please consider these Reference details:
Article in ICAI Journal: http://220.227.161.86/23576august2011journal_106.pdf
Cases: AAR-287 ITR 462-british gas & 294 ITR 177 AAR
DTAA with US: http://law.incometaxindia.gov.in/DIT/File_opener.aspx?fn=http://law.incometaxindia.gov.in/Directtaxlaws/cbdt/dta/A1_USA.htm
20 July 2012
As per the DTAA, if taxes are paid at USA, you need not add the income to Indian Income Tax. So your USA income is not taxable in India; since you have paid the USA fedral taxes on this USA salary income. (I hope your contracting state is INDIA and service provided state is USA)
Message likes :
1 times
Querist : Anonymous
Querist :
Anonymous
(Querist)
20 July 2012
Dear All,
My Tax consultant's opinion is that global income is taxable for Resident & Ordinary Resident.
Hence according to him US salary is taxable in India.
Please guide & share some relevant case laws which suggests that US salary need not be taxed in India for R&OR if it is taxed in US.
Appreciate all your help.
My Tax consultant's opinion is that global income is taxable for Resident & Ordinary Resident.
Hence according to him US salary is taxable in India.
Please guide & share some relevant case laws which suggests that US salary need not be taxed in India for R&OR if it is taxed in US.
Appreciate all your help.
21 July 2012
US salary is taxable SUBJECT to DTAA (Double Taxation Avoidance Agreement) between INDIA and USA. Request you to go through DTAA. (Available on incometaxindia.gov.in
Querist : Anonymous
Querist :
Anonymous
(Querist)
22 July 2012
This is my understanding of DTAA rules & accordingly my US salary should not be taxed in India.
Based on Article 4, since I am a resident of both India & US, I will be considered resident of India due to my permanent base in India.
(F.y.i.: I have added 'US' / 'India' to help read below rules)
ARTICLE 16 - Dependent personal services - 1. Subject to the provisions of Articles 17 (Directors’ Fees), 18 (Income Earned by Entertainers and Athletes), 19 (Remuneration and Pensions in respect of Government Service), 20 (Private Pensions, Annuities, Alimony and Child Support), 21 (Payments received by Students and Apprentices) and 22 (Payments received by Professors, Teachers and Research Scholars), salaries, wages and other similar remuneration derived by a resident of a Contracting State (India) in respect of an employment (in India) shall be taxable only in that State (India) unless the employment is exercised in the other Contracting State (US). If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State (US).
2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State (India) in respect of an employment exercised in the other Contracting State (US) shall be taxable only in the first-mentioned State, (India) if :
(a) the recipient is present in the other State (US) for a period or periods not exceeding in the aggregate 183 days in the relevant taxable year ;
(This condition is not fulfilled, as I was in US for more than 183 days based on US calendar-taxable year.)
(b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State ; and
(This condition is not fulfilled, as Salary was paid by a resident of US)
(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.
(This condition is not fulfilled, as remuneration is borne by PE which employer has in US)
Based on Article 4, since I am a resident of both India & US, I will be considered resident of India due to my permanent base in India.
(F.y.i.: I have added 'US' / 'India' to help read below rules)
ARTICLE 16 - Dependent personal services - 1. Subject to the provisions of Articles 17 (Directors’ Fees), 18 (Income Earned by Entertainers and Athletes), 19 (Remuneration and Pensions in respect of Government Service), 20 (Private Pensions, Annuities, Alimony and Child Support), 21 (Payments received by Students and Apprentices) and 22 (Payments received by Professors, Teachers and Research Scholars), salaries, wages and other similar remuneration derived by a resident of a Contracting State (India) in respect of an employment (in India) shall be taxable only in that State (India) unless the employment is exercised in the other Contracting State (US). If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State (US).
2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State (India) in respect of an employment exercised in the other Contracting State (US) shall be taxable only in the first-mentioned State, (India) if :
(a) the recipient is present in the other State (US) for a period or periods not exceeding in the aggregate 183 days in the relevant taxable year ;
(This condition is not fulfilled, as I was in US for more than 183 days based on US calendar-taxable year.)
(b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State ; and
(This condition is not fulfilled, as Salary was paid by a resident of US)
(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.
(This condition is not fulfilled, as remuneration is borne by PE which employer has in US)
23 July 2012
If you satisfy the conditions laid down in DTAA, your USA salary is not taxable in INDIA. Both of us are saying the same thing. Thanks.
06 November 2016
In this case, the salary received for employment in USA may be taxable in India. The actual facts need to be seen and correlated with the conditions mentioned in DTAA, before coming to a conclusion. Thanks!
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Should I include march foreign salary received in April in my income for FY 2023-24?
- Tax on capital gains revoked us 54f
- Inventory of finished goods
- Confusion around Form 26QB fields
- Sale of property furniture sale
- Filing of Form 10BB instead of Filing Form 10B
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Refund of AY 22-23
- Disallowance of Section 43B(h) to sez units
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- Last year input claim shown in gstr9
- GST Registration Cancellation books of accounts asked by officer
- TDS Deduction Online Learing Platform
- Point (III) 9 of GSTR-9C
- As per our records, find the below outstanding demand(s)* and interest payable u/s 220(2):
- Regarding transaction th. credit card
- HSN Details in IFF/GSTR-1 & in GSTR 9
- MIS MATCH OF INVOICE NUMBER
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
Trending Online Classes
CAclubindia
