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Foreign salary Taxability

20 July 2020

whether assessee(resident) salary income earned outside india is taxable in india even he is not having bank account outside india ?
If yes, how can income earned shall be calculated ? conversion rate ?
TTBR SBI?

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3 Replies

CA Raj Doshi (Practising CA) (8903 Points)
Replied 20 July 2020

In case of a resident, his global income is taxable in India.

Salary received in India is taxable in India.

There is no standard for conversion rate. You could use SBI TT BR on the conservative side.

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Jatin Verma (71 Points)
Replied 21 July 2020

Sir if tax is deducted on salary by foreign govt there.
Then what will be the tax consequences in India?

CA Payal Gupta (Chartered Accountant) (154 Points)
Replied 21 July 2020

Dear Jatin,

In the case of Resident, Resident, and Ordinarily Resident (ROR) then his global income is taxable in India.

For converting salary in India Rupees, then you should arrange for the SBI TTBR rate on the date of Salary paid.

Further, you can take a foreign tax credit of such tax paid in foreign by filing form 67 under Income Tax and show the credit of tax deducted u/s 90 or 90A while filing Income Tax Return and you should have proof of tax deducted on salary (e.g. challan) in a foreign country because it needs to be uploaded while filling the form.