Foreign income

142 views 3 replies
My brother works for a MNC in Germany. He satisfies the provision of Section 6(1) of the income tax act. My questions is, since he is a resident as per the Act can he pay the income tax to the Indian govt and opt not to pay the income tax in Germany?
Replies (3)

Hi Ashrith!

He is required to pay the tax first of all in Germany and then such paid tax will be deducted from the Indian tax liability as assuming that India as DTAA with Germany.

Ex: Tax Liability in Germany( Converting in INR) : 1500

Tax Liability in INDIA: 3600

Then Net tax payable to INDIA Govt: 3600-1500=2100

For the amount paid in Germany you must have the document which establish that you had paid the tax in Germany.

 

Thanks!

Sir what if he pays more tax in Germany than in India?

Then No Tax India and May File refund in Germany according to Their Tax laws!


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register