08 September 2008
A Doctor, resident of India, received a pension from UK government for the health care services(Government) he rendered in UK.In this context please let me know whether his pension is taxable in both the countries or only in one country.
In case it is taxable in both the countries , is there any possibility of setting of the tax paid in one country with the liability of other.
09 September 2008
Is UK government witholding any tax from the pension remittted to India or is it remitting without deduction.
Going by the broader psituation, the pension has to be taxed only in one country. If the doctor is a resident as per section 6 of the IT Act, then his world income has to be taxed in India. In such a sitaution and if witholding tax is witheld in UK he can claim the credit of that witholding against the tax payable by him in India.