19 November 2015
What is the Procedure for Non Resident to Claim Tax Credit (TDS / With Holding Tax Deducted in India) in their Country by using Form-16A (TDS Certificate Issued by a Deductor from our Country). Please assume Non Resident is in Switzerland. And also is it necessary for the Non Resident to file Income Tax Return in India since he has obtained PAN?
19 November 2015
He has to file return in India only he has taxable income. You can claim tax credit in the return filed in Switzerland with documentary evidence of form 16A.
As Per Income Tax Act, incidence of tax does not depend upon the nationality or domicile of the tax payer but on his residential status in india in the relevant previous year.
In the case the assessee is non-resident in india, he is liable to pay the tax in india on the following income i) income received or deemed to be receieved in india. ii) income accrue or araise in india or deemeed to accrue araise in india.
Therefore,such income are taxable in india , and assessee are required to file income tax return by claiming relief u/s 91.
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