My daughter technically holds a Canadian Permanent Resident card. She has stayed there only for a month and is a non-resident for tax purposes. Although she lives in India, she has a small salary income which a Canadian company directly deposits in her a/c there.
Being a non- resident, she will file her returns in Canada for income earned there only, on which she will pay 20% tax only. The tax on her Indian income is 33.9 %
My question is: While mentioning her Canadian income in the Indian Tax returns, how will her Canadian income be treated?
- Will Indian Income tax people ignore Canadian income as tax already paid
- Or will Indian Income tax people charge her the amount of difference in tax i.e. applicable Indian tax rate 33.9% – 20 % Canadian tax already paid?
- Or will they add Canadian income to her Indian income and tax @ 33.9 % on the whole amount minus Canadian amount of tax already paid?
CAclubindia
