Hi Gaurav,
Did you sign any employment contract with the Switzerland Company?
Or it's just a contract work.
Please feel free to call/ revert in case you need more clarity.
Thanks and regards
Abhishek Dugar
CA CS B.Com
I had recently got a contract from a company registered in Switzerland in which they had told me that they will be paying me salary directly in my account. What tax rules will apply on this salary. I would not be getting any HRA and other benefits - just the lump sum money at the end of month. I need to know what will be the tax implications of that in India.
I would want to keep it very simple - someone suggested me I can show 50% of the salary as expenses but I don't have that much expenses so what would be the best way for me to save tax? I would need only a laptop and an internet connection. They are paying me suppose 1000 dollars so how much it would actual be in hand for me after deducting all the taxes.
Hi Gaurav,
Did you sign any employment contract with the Switzerland Company?
Or it's just a contract work.
Please feel free to call/ revert in case you need more clarity.
Thanks and regards
Abhishek Dugar
CA CS B.Com
I have yet to sign a employment contract - i just want to know the tax implications - suppose they are paying me 1000 USD a month - how much tax will be there. I will be working as an employer and not a contractor.
Dear Gaurav,
You got a work in the form of Contract and salary against that Contract, both the things are contradictory to each other. For Salary, there should be an employment contract with the employer showing all the terms and conditions of the employment contract alongwith the components of CTC. If it is purely in the nature of salary then switzerland company would deduct TDS as per switzerland income tax law from the salary paid to you.
Sorry you can't claim any expenses against salary income in India. If you want to claim expenses then it should be income from profession and the expenses should be legitimate.
You can call me on 7060029944
Thanks
Hi,
You will not be able to claim any expenses from this salary income in India. Will need to ascertain the exact clause that you have with the employer. Are they going to deduct taxes and remit the remaining money?
Regards,
Nikhil.
If you are signing an employment contract (which is highly unlikely) then entire USD 1000 will be taxable in India.
However, if you are working on a retainership basis/ contract work, then you can claim presumptive taxation of 50%
Please feel free to call/ revert in case you need more clarity.
Thanks and regards
Abhishek Dugar
CA CS B.Com
Hii
if you are working as employee of that company and no salary breakup is there then you have to pay tax as under
total salary 1000*12*65=780000 ( 1000$ monthly and taking 1 USD =65)
Less standard Deduction 40000
Taxable Salary 740000
up to 2,50,000 = NIl
next 2,50,000 = 12500
next 2,40,000 = 42000
Total = 54500
Cess = 2180
Net Tax payable 56680
and if you are in professional contract then you have option to declare 50% or more as income and pay tax accordingly.
Dear Gaurav,
Total salary in INR assuming exchange rate of 65 would be RS.7,80,000.
Less :standard deduction of RS.40,000
Less: Deduction u/s 80C of RS. 1,50,000
Taxable Salary would be RS. 5,90,000
Tax would be RS. 31,415.
Do you have any mediclaim policy?.