DTAA between India and Indonesia

This query is : Resolved

G.D. SINGLA (Querist)
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11 July 2010 MY NRI CLIENT EMPLOYED IN INDONESIA IS PAYING HIS DUUE TAXES THERE. HE HAS INTREST INCOME IN INDIA OUT OF WHICH ONE IS FROM SBI. SBI HAS DEDUCTED 10% AS TDS ON THAT INTREST INCOME. MY QUERRY IS WHETHER THIS INCOME IS TO BE ADDED TO HIS OTHER INDIAN INCOME AND TDS TO BE CLAIMED AS TAXES PAID OR THIS SBI INTT INCOME IS NOT TO BE ADDED TO OTHER INCOME AND TDS DEDEUCTED IS ASSUMED TO BE THE TAX LIABILITY PAID. THE OTHER DEDUCTERS HAVE DEDUCTED TAX AT FULL RATES. PLS ADVISE THE TREATMENT FOR THIS.

m.s.nageswararao

m.s.nageswararao (Expert)
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11 July 2010 Here Total Income includes Interest on deposits from Banks, what ever income from other sources in India to be added (receivable in India). T D S is also to be taken total deducted in India. Now arrive tax liability .

CA Shiv

CA Shiv (Expert)
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11 July 2010 from my opinion:

All the income received in India is taxed in India... so you have to add all the income here.

Also,

If he is NRI than he will be getting credit of the tax paid in India provided he clubs this income in Indonesia.

If he is not NRI than his indonesian income will be clubbed in India and will get tax credit for tax paid in indonesia.

Pls refer:
http://www.allindiantaxes.com/indonesia.php

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