Section 194J and Tax Computation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 October 2010 Dear Sir,
I'm a salaried individual with an MNC.
I'm taking up a new opportunity in USA,but will join the India office as a temporary consultant for a period of 1-2 months,before relocating as a permanent employee with the US organisation.

Query:
1.As a consultant,what tax implications should I take into consideration(i.e. how does this impact IT filing if I have recd salary for 9 months in the financial year and 1-2 months as a temporary consultant
2.Can I receive salary in US dollors whilst in India ?

Appreciate your response at the earliest.

UMA SHANKER SHARDA

UMA SHANKER SHARDA (Expert)
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09 October 2010 1. At the time of filing your return, for 9 months, it will be income under the head Salary and for consultancy period, it will be under the head business & profession. Expenses incurred related to consultancy i.e Telephone, conveyance etc. may be claimed from income under the head business & profession for relevant period.

2. Yes, you can receive salary in U S dollers, but in India, the same shall be deposited in your account in indian currency only and be taxed in India as you are ordinary resident in India as per Income Tax Act.