Salary to nri

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Querist : Anonymous

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Querist : Anonymous (Querist)
22 August 2011 Pl. advise...
Can a Salary be paid to NRI
who is leaving India for further education and remain outstide India for 12 months..

a) If salary is payable; TDS to be deducted..
b) whether it covers u/s 192 or 195
c) what is the rate of tax
d) Is income taxable in India.. at what rate (special rate or normal rate)

Pl. note the assessee is not getting income outside India

23 August 2011 firstly we will check his residential status. TDS will be deducted bcz income arise in india. if Pan card is not available then 20 % flat TDS will deducted. or if it is available then the nature of work (Contract, professional etc)

23 August 2011 Why the employer is paying the salary if the employee is leaving India for further education and remains outside India for 12 months??

a) If employer agrees that salary is payable; then TDS needs to be deducted.

b) It is covered u/s 192 .

c) Normal rate of tax as applicable to any Indian employee,however if the person stays outside India for more than 12 months then he shall become tax resident of the country of his stay and tax shall be required to be paid in That country and not India.

d)answered above.

Some more planning and care can save the TDS and taxes in India.

Anuj
+91-9810106211
femaquery@gmail.com


24 August 2011 I agree with the experts but if the company is sending on its own account then and it should be covered by letter of appointment.



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