Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: Central Excise rule to resale the machines to a new company :: VAT RATES :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: articles on VAT and GST in India :: empanelment :: VAT Audit :: form 3cd :: ACCOUNTING STANDARD :: cpt :: TDS :: list of goods taxed at 4% :: ACCOUNTING STANDARDS
 
 
News Headlines »
 Directions under section 119 of the Income-tax Act, 1961
 Securities excluded from GST ambit in revised Bill
 GST dilemma: Hope fades for new tax regime
 5nance.com launches tax investment platform
 Is government tapping your phone?
 Income tax department to use analytics to look for discrepancies in bank accounts
 GST Council fails to break deadlock over indirect tax regime, next meet on Dec 11 and 12 to hammer out differences
 Invoking Writ Jurisdiction For Income Tax Matters
 How to file income-tax returns online
 How Income Tax Returns Are Scrutinised
 All About New Income Disclosure Scheme to make Demonetisation successful

Get the tax residency certificate to avoid double taxation
September, 01st 2016

I am not a non-resident Indian (NRI). I have been living in Singapore since November 2015. I have paid taxes in there for November and December 2015. Under the Double Taxation Avoidance Agreement (DTAA), I don’t have to pay taxes for these months in India. But Singapore follows a January-December financial year (FY), and I haven’t yet got my tax receipts for January-March 2016. As the Indian FY is from April to March, how do I avoid double taxation for this period?

Taxability in India depends on source of income and residential status. Residential status is determined on the basis of physical presence of an individual in India during the relevant FY and the last 10 years. And Indian citizen leaving India for taking up employment abroad may qualify as an NRI if he has spent less than 182 days in India during the relevant FY. But as you started your overseas assignment in November 2015, you may qualify as a tax resident of India for FY16, assuming you had stayed in India for at least 182 days in FY16. A resident individual can qualify as a resident and ordinarily resident (ROR) of India in case he satisfies these conditions: the individual qualifies as a resident of India in at least two FYs out of the 10 FYs preceding the relevant FY, and stay in India, during 7 FYs preceding the relevant FY, is 730 days or more. If both the above mentioned additional conditions are satisfied, you are most likely to qualify as an ROR for FY16 and would thus be taxable in India on your global income, including income (assuming salary) earned in Singapore.

For determining any benefit available under the DTAA, you would first have to determine your residency as per Article 4 of the applicable DTAA, which is dependent on your residential status in Singapore and other personal factors. Typically, in case you qualify as a treaty resident of India, your Singapore-sourced salary income would be taxable in India. In a situation where you qualify as a treaty resident of Singapore, you may be exempted in India on your Singapore-sourced income, subject to the provisions of the DTAA.

Also, you would be required to obtain a tax residency certificate from the Singapore tax authorities (for the period when you qualified as a treaty resident of Singapore), as the same can be requested from you by the Indian tax authorities. Also, split-year residency position is not specifically provided under the Indian tax law, but there are certain favourable decisions by Indian courts in this regard. Tax return should be filed in India, if any benefit is claimed under DTAA.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
E-catalogue online catalogue E-brochure online brochure online product catalogue online product catalogue e-catalogue Indi

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions