Clarification on ftc
VIJAY RAGHAV (Manager Finance) (46 Points)
15 June 2014VIJAY RAGHAV (Manager Finance) (46 Points)
15 June 2014
C.A. Jignesh N. Mehta
(C.A.)
(1030 Points)
Replied 15 June 2014
Since your friend is resident in india - his world income is liable to tax.
Since there was TDS deducted on UK income - TDS credit is allowable in India.
To summarise - TDS claim = TDS of india + TDS of UK (avg rate working)
How to compute TDS claim of UK - its a illustration
Indian Income - 510000
Forign Income - 110000
Total Income - 620000
Deduction - 133000
Taxable Income - 487000
Tax + Cess - 24411
Avg rate of tax in india - 24411 / 487000*100 = 5.0125%
Avg rate of tax in foregin - 11000/110000*100 = 10%
Hence rebate u/s 90 relief = 110000*5.0125% = 5514
Tax payable = 18897
Less TDS = xxxxxxxxxxxxxx
Refund = xxxxxx.
Tribhuvan Aditya Singh
(Student as well as Self-employed)
(3710 Points)
Replied 16 June 2014
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