S Saravanan (Chief Financial Officer) (473 Points)
12 August 2012
Gkumar
(project manager)
(72 Points)
Replied 18 August 2012
if the USD income was Bonus, Profit Sharing or stock giveaway by a MNC to his employee in India, then will India tax still apply.
Also, if this expat is paying tax in his home country (assuming USA), then his mandatory deduction like social security and medicare--how will all that be treated?
It gets really involved !!!!
S Saravanan
(Chief Financial Officer)
(473 Points)
Replied 18 August 2012
Section 5 read with section 9(1)(ii) is very clear that all income (whatever may be the resident status) even if accrued outside India for services rendred in India, it is taxable, bonus, etc payable overseas but for services rendered in India it is taxable in India.
The second part of your question is really technical, which is a bit difficult for me. But to my small tax knowledge if status is Non Resident, then he has to pay tax in both the countries for the respective services rendred (ie) for services rendred for US business in US and for Indian business in India. If RONR or Resident all income to be taxed in India for services rendred in India.
vaibhav madaan
(8 Points)
Replied 26 September 2022
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