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TDS on salary to a Foreign Branch employee who is resident

This query is : Resolved 

04 February 2021 Hi,

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.


Thanks,
Himanshu

04 February 2021 No TDS applicable if payment is made by foreign branch.

15 February 2021 Thanks for the quick revert CA R SEETHARAMAN but isn't any income earned by a citizen taxable in India?


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.

16 February 2021 Better to deduct tax as payment is made to Indian resident.



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