Dear All,
Residential Status and Foreign salary income under DTAA
AJAY BANSAL (CA) (36 Points)
14 July 2011AJAY BANSAL (CA) (36 Points)
14 July 2011Dear All,
Pratik Shah
(Article)
(25 Points)
Replied 14 July 2011
Interest Income of NRI from NRO Savings bank A/C is taxable under which section & tax rate?
AJAY BANSAL
(CA)
(36 Points)
Replied 14 July 2011
So what about tax deducted in US and exemption under DTAA?
@*CS Siddharth Bumb. *
(B.Com, CA Final, CS )
(5270 Points)
Replied 14 July 2011
according me too he has to show in ITR what he earned in foreign..
its guess but i dont know exactly..
wait for experts..
post this que to experts query..
nice question
p v s sudhir kumar
(0)
(48 Points)
Replied 15 July 2011
According to me it may depend on the activity of received in India or Out side India. According to section 7 of The Income Tax Act in the case of resident and ordinery resident in India during the previous year the it is taxable in India if it was first received in India (i.e., Income accrued in india and first received in India) and I don't Know what is the tretment of the claiming of TDS which was done by the US department
Thanking you
RAJU
(LEARNER)
(1089 Points)
Replied 15 July 2011
Hi,
I believe income the Income earned in US also to be shown in the return to be filed in India and relief available for tax paid in US to be deducted under `Relief`...
CA Deepak Kumar K.R.
(Chartered Accountant)
(45 Points)
Replied 16 July 2011
As per ARTICLE 25 (2)(a) of DTAA between India and USA.
2. (a) Where a resident of India derives income which, in accordance with the provisions of this Convention, may be taxed in the United States, India shall allow as a deduction from the tax on the income of that resident an amount equal to the income-tax paid in the United States, whether directly or by deduction. Such deduction shall not, however, exceed that part of the income-tax (as computed before the deduction is given) which is attributable to the income which may be taxed in the United States.
Regards
Deepak Kumar K R
AJAY BANSAL
(CA)
(36 Points)
Replied 16 July 2011
Thanks Mr.Deepak,
I want to know further about this.
Whether first to calculate tax as per India income tax rates on this foriegn salary income and then give deduction for tax paid in USA?
How tax paid in USD will be coneverted to INR for deduction from tax in India?
Whether deduction will be given in sec.90?
Thanks....
ANKIT AGARWAL
(Management Trainee)
(32 Points)
Replied 16 July 2011
Well the total Global Income have to be shown where the individual is a resident and ordinarily resident in india and thus while filing income tax return both salary in India and Us has to be shown and then exemption under DTAA can be claimed.
CA. Anuj Gupta
(Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA)
(7024 Points)
Replied 20 July 2011
Originally posted by : AJAY BANSAL | ||
Whether first to calculate tax as per India income tax rates on this foriegn salary income and then give deduction for tax paid in USA? How tax paid in USD will be coneverted to INR for deduction from tax in India? Whether deduction will be given in sec.90? Thanks.... |
Here the TDS credit can be claimed . First the tax as per Indian Income tax rates should be calculated and after the same credit of TDS deducted in US should be given.
The tax and income of US shall be converted using the exchange rate as on 31st March.
yes sec. 90 will come in play.
mandeep
(accounts manager)
(24 Points)
Replied 25 July 2011
CA. Anuj Gupta
(Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA)
(7024 Points)
Replied 25 July 2011
Taiwan salary shall be coverted in Indian rupees at rates prevailing on 31st March 2011 and added to Indian Salary of Rs. 2 Lakh.
Against that total salary , tax credit of (58 ntd) shall be available.
Anuj
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