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Taxation of non resident - it's urgen

Moyyad Zapawala (Chartered Accountant) (425 Points)

04 January 2013

Hello Friends , I have some queries

1) One of my client, he was in india in Previous year 2011-12 only for 70 days, thereafter he went to US, for job. So whether we can treat him as non resident under exception given in income tax act. Whether he is resident or non - resident?

2) He has received Superannuation of Rs.XXXXXX after Deducting TDS amounting to Rs.XXXX. So my question is whether such superannuation is liable for Tax.? whether should we show in his income statement? if yes so under which head?

pls reply me.

Thanks in advance

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3 Replies

Deva R (student) (83 Points)
Replied 04 January 2013

1. Since the client has gone out of india for employement he ll be considered as resident only if he stays in india for more then 182 days. Hence he is a non resident. 2. Super annutation fund recevied in india is liabile to tax in india under the head salaries.

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Moyyad Zapawala (Chartered Accountant) (425 Points)
Replied 04 January 2013

Thanks Deva for your reply

Can you explain me provision under income tax act for superannuation fund ? under which section it is taxable?

another one is there are two conditions given for residential status - one for 182 days and second is 365 days or more in last 4 preceding year and atleast 60 days in previous year. again for second condition, some exceptions are also given so can you tell me exact residential status.

Deva R (student) (83 Points)
Replied 04 January 2013

Sec 17 defines salaries which includes annuties, pension & gratuity. Superannutation is a kind of pension and hence it falls under salaries. Further as u said for determining residential status there are 2 conditions. Person should be present in india for 1.more than 182 days or 2. 60 days during the year n 365 days or more during previous 4 yrs. Second condition doesnot apply for persons gone abroad for employement. Which means he should be in india for more than 182 to be considered as a resident.