This is regards to computation of Tax Liability of individual having both Indian Salary and Foreign Salary during a previous year. During the previous year 2009-10, uptil 6th Feb 2010 I was on the rolls of Indian Company but from 7th I had started getting salary from a UAE company. I had moved to UAE on 1st Jan 2010 intially on visit visa, during which I was getting both Indian Salary and per-diem allowance from the company. But from 7th Feb 2010, I had got residence visa from UAE and my UAE salary started inplace of Indian Salary and per-diem allowances.
My question is: During computation of my total tax liability of A.Y. 2010-11, Whether I would consider UAE Salary and per-diem allowances or not?
14 March 2010
U r resident in India During F.Y.2009-10 (total stay in India 182 days or more). In the absence of information, i assume it as resident and ordinarily resident in which case ur worldwide income will be taxed in India for the assessment year 2010-2011. Hence u will have to consider UAE salary and per-diem allowance while furnishing ur return . Regards, CA Shakuntala Chhangani
But would any concession/exemption/ deduction be available to me w.r.t. to UAE Salary and per-diem allowance?
And as I know per-diem allowances are exempted from tax, since these are rembursement of expenses which exmployee incurres during his foreign visit. Please clarify whether this is true or not.
16 March 2010
my dear, allowance is not reimbursement of expenses. it is the fixed amount received irrespective of actual exp. i m not aware of any exemption from the same. However, CA Madhusudan Bohra (Expert) is based in Dubai. U can take his advice. Regards, CA Shakuntala Chhangani