One of our client works for Accenture, He traveled to USA on 16th July 2010 and since then he was on a pay roll of Accenture USA. He came back to India on 31st Dec 2011.
Now he is employed again with Accenture Indian payroll since 1st Jan 2012.
Whatever he earned in USA during the previous financial year in USA (earned in Dollar), he has paid tax on that (Paid Tax in Dollar i.e. is an approx India Rupee of 28,00,000 he paid Approx Rs. 4,50,000 as per USA taxation (all in dollar).
Now he has a form 16 from 1st Jan 2012 to 31st March 2012 for India Accenture.
What will be hi status from 1st April 2011 til 31st March 2012. How should he go ahead for filing in India..??
Does he required to add that Rs. 28 lakhs and 3 months of India Income from 1st Jan till 31st march 2012 and pay tax or he can go ahead with filing for 1st Jan 2012 till 31st April 2012.
He has a valid ITR for USA on his Rs. 28,00,000 (which he got in dollor from USA pay roll only).
Your client has been in India for a period of 91 days in the FY 11-12 and thus doesn't satisfy the 1st condition for determining residential status (ie being in India for 182 days or more in the year)
Also, he does not satisfy the 2nd condition for determining residential status ( ie being in india for 182 days or more, and 365 days or more in 4 years prior to this year, since he went for employment outside India)
Therefore, His status for AY 12-13 ( PY 11-12) becomes Non-Resident.
(See Section 6 of the Income Tax Act.)
His salary income in India from 1st January 2012 only will be taxable in India
CAclubindia
