13 September 2007
if an individual deputed to usa for employment on 29th sep 07,and as his salary will be taxed their;will he be taxed in india too,when he transfers that amount from usa.And what will be the tax treatment of the exchange difference earned??
13 September 2007
firstly viraj this is a very good question.here it is important to note that you are a resident of INDIA as you qualifies the second test of residentship that you have stayed in INDIA for a continuous period of 4 years prior to previous year .and for a period of 60 days in the previous year.thus you are a resident of india in previous year with respect to your tax incidence an Individual who qualifies to be resident{ordinary resident}all income accrued/recieved overseas is required to be reported to tax in india In connection with income earned from abroad it is important to note that india has entered into double tax avoidance with many countries with respect to avoid tax being paid on the same income in two countris you canfind that whether USA is in that list or not most probably it would be.search on netor find from the ambassy....of india in usa ......please tell me if there are any variation all the best......
13 September 2007
thanks for the fast reply.i would also like to bring to your notice that,he was being to usa before two years for a period of three months then will u help me with this case..and the query regarding the exchange difference earned remains unanswered.
Pl calculate the residential status of the person as per the provisons of section 6 and check the scope of total income as contained in section 5 of the Income tax Act, In case he is taxed in India with regard to foreign income also, the provisions of DTAA with USA could be looked into
14 September 2007
He will be going on 28th night at 2.00clock,so will that be counted as an additional day,bcos then it would amount to 182 days if that one additional day is counted.so can u suggest me something like should i tell him to get the tickets preponed by a day,will that be beneficial??
15 September 2007
hi Viraj, sorry for the delay bro...IT is like taht a person has to be there for a period of 365 during teh period of 4 years.immediately preceeding the previous year,.sorry no idea with respect to tax treatment of exchange differnce earned...sorry but I will enquire twh same...........stay in touch
CAclubindia
