03 November 2008
For instance "A" is working in software company. He is sent on depution to US where he receives his salary there & say a porion here. Salary portion received in India is taxable as per the IT Act but how is the US income treated & taxed in India assuming that tax is paid in US for the income earned in US.
03 November 2008
If he is resident Indian he is taxable in India also for the salary received in US, but relief under Double Taxation Agreement executed buy India with US is available for tax paid in US.
03 November 2008
it was only a hypothetical q i asked. however let us assume that A get 180000 p.a. as salary in india; tds deduction made as per the law & 55000 US $ & TDS for the same being 16500 (assumed @33).
How is Income from salary & tax computed in India.
04 November 2008
Convert this USD 55000 in INR on the respective date of receipt. Calculate tax as per Indian IT Act and claim DTA credit for USD 16500 in the return filed.
CAclubindia
