We have transferred one of our employees to our UAE Branch office and have executed a fresh employee agreement with her in foreign currency. But she is an Indian resident as per IT act for FY 2021 (spent >182 days in India). Wanted to check if TDS is applicable on the salary paid to her foreign bank account for the services rendered to the foreign branch office.
15 February 2021
This income is taxable in India file ITR and pay taxes. TDS not applicable if salary is paid by foreign branch to foreign bank account.