Dear Friends,
One of my cousin is joined in U.S. MNC in India. U.S. MNC is having an office at India, but no any Operations in India. Hence, U.S. company is paying Salary to the Indian employees bank account directly (Wire Transfer) from U.S. Bank.
So, what is the procedures to receiving this Salary Income? What about Income Tax implications for this?
3 Replies
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 02 September 2021
It should be taxable as it is deemed to accrue in India
Mohanraj J
(1178 Points)
Replied 02 September 2021
Can we avail tax exemptions like PPF, Insurance, Loan Interest etc, Medical Insurance etc,
JGM
(Knowledge Sharer)
(443 Points)
Replied 02 September 2021
From Indian employee perspective, he can consider going for volunatry PF registration. However, not sure whether US MNC would agree for it. He can check with his employer. On a separate note, there is high likelihood of US MNC having PE in India unless it is a Liaison Office. Further, since your cousin is Indian resident, his global income is taxable in India. Hence, in the instant case, the salary is taxable in India.
For claiming the exempt component of Salary, you need to check with the employer. If the employer provides those components, exemption for such should be available. Please take note of perquisite taxation as well.
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