20 May 2009
I work for a company located in Dubai. I recd my salary in USD here in India for last 1 year. The company doesn't deduct TDS from my salary. I want to know whether TDS has to be duducted from my salary and who is liable for not deducting the same????
Will there be any implication on me at the time of filing tax return or say at the time of getting any bank(home)loan ??
20 May 2009
The reply to first query is that your foreign employer is liable to deduct TDS from the salary payable to you u/s 192 of the income Tax Act and pay the same to the Govt. For which they would require a TAN in India and a they are also liable to file quarterly returns etc. also and a salary certificate will also be required to be issued to you. In the company is not doing all this , they will be treated an assessee in default under section 201 (1A) of the IT Act and be liable to I pay interest under that section and penalty u/s 271C of the IT Act for non deduction of TDS. This case has been well settled and various foreign companies having employees in India are complying with this legal requirement.. For doing that they can get the services of any chartered accountant in India and that chartered accountant can do all the formalities for them for a fee.
Hope this gives you a good insight . In case o any further clarification, you are welcome.
20 May 2009
For the second answer on filing of your ITR and the Bank loan, you can file your ITR by paying taxes on self assessment and take that ITR for loan purpose.
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