Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: form 3cd :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: Central Excise rule to resale the machines to a new company :: list of goods taxed at 4% :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: due date for vat payment :: VAT RATES :: cpt
 
 
Indirect Tax »
 Indirect Tax Collection Under Gst Goes Down By 30 Percent
 What is a belated income tax return and what are its consequences
 Why rejig of financial year could upset your tax planning
 The threat of harsh penalty should not impede tax compliance
 What are the tax exemption limits for allowances, reimbursements paid to employees? Find out
 High-income taxpayers to get priority treatment and extra facilities
 GST input tax credit rules: How taxpayers will benefit from ITC
 More complications in filing income tax returns
 Guidelines for selection of cases for scrutiny during the financial-year 2017-2018
 CBDT asks Income Tax officials to pull their socks up as revenue collection not satisfactory
 Nearly 15 pct growth in direct tax collections for fiscal 2017-18

Tax on income earned abroad depends on residential status
September, 05th 2016

Taxability of income earned in France will depend on your tax residential status in India in FY17. This status would be determined by your physical presence in India during FY17 and in the immediately preceding seven FYs (1 April 2009 to 31 March 2016).

Assuming that you have been primarily based in India and will work from France for 3 months, you are likely to qualify as Ordinarily Resident (OR) of India for FY17. So, your global income shall be taxable in India, irrespective of the source or place of receipt of the income. Hence, the income earned in France shall be taxable in India, subject to the benefits, if any, available under the Double Tax Avoidance Agreement (DTAA) between India and France as per Section 90 of the income tax Act, 1961. The taxability or exemption would depend on the nature of income received.

As you would qualify as an OR, if you have any assets located abroad, then you would be required to furnish details of assets such as foreign bank accounts, immovable property, and investment in shares and mutual funds in the personal income-tax return.

Failure to comply with the above disclosure requirements may attract penal consequences.

Further, as an OR, if you claim relief under section 90 of the Act, you have to use income tax return-2 (ITR 2). The salary pertaining to the France assignment has to be reported under schedule FSI (foreign source income). The relief under DTAA has to be reported in the schedule TR and overseas assets in schedule FA.

If depending upon your stay in India, you qualify as either a Non-resident (NR) or as Not Ordinarily Resident (NOR) in FY17, you shall be taxed in India only on India-sourced income. Accordingly, the income earned in France for rendering services there shall not be taxed in India provided the salary is also directly credited to the overseas bank account. If the salary is directly credited to your Indian bank account, it shall be taxable in the first instance in India on receipt basis.

If your total income during FY17 exceeds `50 lakh, you will have to disclose the total assets and liabilities in Schedule AL in your personal tax return.

If the aforesaid salary is taxable in India, your employer will have to deduct taxes from it and deposit into Indian government’s treasury within the specified time, and comply with other tax obligations. If taxes are not deducted by the employer, you will have to pay taxes through the advance tax route in instalments during FY17, or as self-assessment tax at the time of filing your return of income.

Salary would include any taxable benefits or perquisites such as rent-free accommodation provided by the employer in France.
If you are paid on per diem basis in France during the assignment, taxability in India will have to be examined separately.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Desktop Application Development Outsourcing Desktop Application Development Offshore Desk

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