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query

SUDHIR & PRADEEP JI (CA FINAL+LLB + DISA) (2299 Points)

28 May 2010

Hi Need few clarifications on the following : 1. If a foreign national comes to India on deputation basis from abroad and he receives a lumpsum amount from his company for his visit in India, the same is taxable in India if he is a resident in India for the financial year? 2. When is DTAA applicable in his case? 3. Does he have to file his return in India for his global income? 4. If a foreigner files his return in India for his indian income for a financial year, does he have to file his income tax return in his home country for the same financial year for other than indian income. Please give some clarifications on the above points whoever is experienced of the same. Regards Christie

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Shudhanshu Agrawal (Business) (2570 Points)
Replied 28 May 2010

Whenever anyone comes in India on deputation then first find out his/her residential status i.e. resident or non resident then find out whether income is accrued or arise in India and whether income is received or deemed to be received in India.

In most of cases whether he is a resident or non resident his income will be taxable in India as per Section 5 of Income Tax Act, 1961.

DTAA will be applicable when he will be filing his ITR. There can be a special rate of income tax or can be exemption.

If he is non resident then he has to show only those incomes in ITR which are accrued or arise in India and which are received and deemed to received in India.