07 December 2009
My client was working with indian co. later in mid december 2008 he joined a co. in newzealand and newzealand income tax deducted. He was resident of india during f.y.2008-09. I have query 1. is his foreign salary taxabale in inida. 2. which rate of exchange to be taken for calculating the salary. 3. is double tax avoidance aggrement is with newzealand. 4. if yes, how the benefit is taken in indian income tax. 5.
07 December 2009
1) Since he was a resident(stayed in India for more than 180 days) for the financial year 2008-09, for the purpose of Income tax, his foreign income earned from dec to march is taxable also in India at normal rates. 3) Ya there is Double tax Avoidance Agreement with Newzealand 4) The benefit can be taken by taking credit of tax paid u/s.90. For calculation u have to go thru procedure u/s.90
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