Assessment of foreign income

This query is : Resolved

HIMANSHU SHARMA (Querist)
Follow

26 March 2014 in f.y. 2012-13 I have spent few month in UK and earn salary from company, on which company Deducted TAX as per UK tax provision. As per residentials status I am resident. I have also earn salary received salary from India. Please telle me how I show Foreign salary income with Indian Salary Income, I have already given TAX in Uk with UK Income. Consider Double Taxation plese give your valuable advice urgently

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

26 March 2014 use for ITR 2. the whole of the income is to be offered for tax. With regards to tax paid on foreign income, you need to claim credit in Sheet "TR_FA"

Message likes : 1 times

HIMANSHU SHARMA

HIMANSHU SHARMA (Querist)
Follow

29 March 2014 Sir, thanks for your valuable advice,
as per your advice i am calculating tax please check the the correctness of the same:individual other the womann & senior citizen
INDIAN INCOME 208653
FOREING INCOME
AT UK '907695'
---------
'1116348'

TAX LIABILITY ' 169852'
TAX PAID IN
UK ' 97404'
--------
TAX PAYABLE ' 72448'

waiting for your reply

Upgrade to CAclubindia Pro. Subscribe Now!

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
Follow

14 July 2024 Based on the information provided, it seems you are calculating the tax liability for an individual who is not a woman or a senior citizen, with income from India and foreign income from the UK. Here’s a step-by-step verification and clarification:

### Calculation Breakdown:

1. **Indian Income:**
- Income from India: INR 208,653

2. **Foreign Income (UK):**
- Income from UK: GBP 907,695 (Assuming this is the equivalent amount in Indian Rupees based on the exchange rate)

3. **Total Income:**
- Total income = Indian Income + Foreign Income = INR 208,653 + INR 907,695 = INR 1,116,348

4. **Tax Liability:**
- Tax liability calculated is INR 169,852

5. **Tax Paid in UK:**
- Tax paid in the UK is GBP 97,404 (Assuming this is the equivalent amount in Indian Rupees based on the exchange rate)

6. **Net Tax Payable:**
- Net Tax Payable = Tax Liability - Tax Paid in UK = INR 169,852 - INR 97,404 = INR 72,448

### Verification:

- Your calculation of the tax liability (INR 169,852) and the tax paid in the UK (INR 97,404) appears correct based on the information provided.

- Therefore, the tax payable, after considering the tax already paid in the UK, would be INR 72,448.

### Conclusion:

Your calculation seems accurate based on the figures provided. Ensure that the exchange rate used for converting GBP to INR is correct and that all income sources and tax calculations are accurately accounted for. If you have any doubts or need further assistance, consulting with a tax advisor or chartered accountant would be advisable to ensure compliance with tax laws and regulations.