Taxability of Salary of US in India

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neha singhal (Querist)
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27 May 2010 Whether salary due & received in US by a Indian Resident will be taxable in India.
Taxes on salary already paid in US.Is there any DTAA benefit. Pl. answer as soon as possible

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27 May 2010 yes it will be taxable in India.

Under Income Tax Act , there is specific provision for relief in case of double taxation .
In that case ,section 91 of the I T Act provides relief from double taxation. Provision of Section 91 of the I T Act says
“(1) If any person who is resident in India in any previous year proves that, in respect of his income which accrued or arose during that previous year outside India (and which is not deemed to accrue or arise in India), he has paid in any country with which there is no agreement under section 90 for the relief or avoidance of double taxation, income-tax, by deduction or otherwise, under the law in force in that country, he shall be entitled to the deduction from the Indian income-tax payable by him of a sum calculated on such doubly taxed income at the Indian rate of tax or the rate of tax of the said country, whichever is the lower, or at the Indian rate of tax if both the rates are equal”
So, you should show the income earned in US claim tax credit of tax paid in US for that period. Therefore, it is in your interest , that necessary tax deduction or payment certificate is kept ready in your record which may be required by Income tax department in case your case is scrutinised.

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neha singhal

neha singhal (Querist)
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29 May 2010 DTAA between USA & India is there. Whether the answer will remain same.

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