Part salary abroad and part in india

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 November 2011 Hi,

One of our employee has gone on long term contract to work for a overseas company on 4th April. We pay him the basic wages alone here to his account and allowances to meet his expenses are paid directly by the overseas company to employee after deducting Income Tax as per the laws there.

While computing his income for TDS, are we supposed to consider his income abroad.knowing that he is more than 182 days abroad

Is the employee eligible for all relief and deductions under 80C etc.

Thanks for the help?

sudarshan

sudarshan (Expert)
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04 November 2011 If the employee is in the pay roll of indian co his salary is deemed to accrue and also received in india so taxable. Tax to be deducted. He is eligible for relief us 80c

Querist : Anonymous

Querist : Anonymous (Querist)

10 November 2011 But as per the definition of Resident Indian, she would be an Non Resident being overseas for more thhan 182 days... based on that shouldnt it be exempted?

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Querist : Anonymous

Querist : Anonymous (Querist)

10 November 2011 This is a Good read for above case

http://www.moneycontrol.com/news/nri-experts/you-may-have-to-pay-taxforeign-allowance_182729.html