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Salary received by resident & ordinarily resident

Parthraj Parmar (B.Com ARTICLE CA FINAL ) (63 Points)

30 July 2014

Hi Friends,

One of my friend has received income from USA as well as India during PY 13 - 14 for 9 months he was in india and 3 months he was in USA. Employer has deducted tax in India as well as USA. I have form 16 of USA as well as India for filling his ITR.

Please guide me how and where should I show USA Salary Income and Taxes paid on it.I am filling ITR-2 For Him.Which Schedules has to be filled up? Indian Salary Income are filled up.

And at what exchange rate should I convert the amount of USA Form 16 to fill in the ITR.

Awaiting for reply...

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3 Replies

Anubhav (Chartered Accountant) (429 Points)
Replied 30 July 2014

TDs deducted in USA is shown in form W2 provided to you by the client. Compute relief u/s 90 and fill in the details of relief u/s sec 90 annexure. like employer details etc.

Status of your assessee is ROR. hence he will be covered under the DTAA USA. Relief will be granted as deduction.

For computing the relief, you need to tell me the entire details. Just PM me.

AJH & Co

9868729930

anubhavjain @ ajhco.in

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Parthraj Parmar (B.Com ARTICLE CA FINAL ) (63 Points)
Replied 30 July 2014

@ Anubhavsir,

Thank you sir for your help. I have mailed you the scan copy of USA form 16.

Thanks in advance, awaiting for your valuable reply.

Hitesh Khanna (Accounting & Finance Taxation Company Law Audit ) (839 Points)
Replied 30 July 2014

Well what I can understand is that the Salary Received in USA by your friend has already been Taxed once. Your Friend's Stay in India was more than 182 days and thus he can be said to be an Ordinary Resident. Global Income is Taxable In the Hands of Resident Assessee. Main point of worry is that Income already taxed in USA will be Taxed AGain India.

Sec 90 Agreement with Foreign Countriess (DTAA) is applicable in Your Case.

TAx paid in USA shall be allowed s a deduction from the Tax Payable in India. Go through Section 90 as I Beleive u have all the details as is required for this purpose.