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Computation of salary income received outside india

Roshani Jain (Employee) (155 Points)

14 November 2016

Hi, I need help on salary income received outside India. Assessee went outside India in September 2014 and started receiving income in foreign currency from november 2014 till June 2016. 1. Whether ITR need to file for FY 2015-16. 2. How we will compute income in case of below particulars of foreign salary: Gross Pay Deduction statutory Federal Income Tax Social Security Tax Medicare Tax NC State Income Tax Other Int Advance Is Recovery Adjustment in net pay Net pay

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4 Replies

Ashok Kumar (CA qualified) (389 Points)
Replied 14 November 2016

It is based on the residential status. If he is a resident of both the countries by the respective tax laws, then we have to analyse the DTAA between the countries to decide on the country in which he will be a resident. If he is a resident of india, then such salary income will be taxable in india but the tax paid in foreign can be claimed as tax credit in the return and only additional tax if any has to be paid in india.

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Udgam Koomar (Tax Technologist) (1949 Points)
Replied 14 November 2016

Has he paid any tax in foreign country?

Roshani Jain (Employee) (155 Points)
Replied 15 November 2016

I know the things shared by. Assessee went to USA for new assignment and before that he was resident in india and also filed ITR for previous years.

Now my question is that he was not in india for FY 2015-16 and he have received income in foriegn currency on which tax also deducted so whether he need to file the return for that FY?