• Some info regarding income tax

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.
Asked 5 months ago in Income Tax from Noida, Uttar Pradesh
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
Abhishek Dugar
CA, Mumbai
3566 Answers
158 Consultations

5.0 on 5.0

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
Vivek Kumar Arora
CA, Delhi
1531 Answers
35 Consultations

5.0 on 5.0

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.
Nikhil Khanna
CA, Mumbai
1286 Answers
14 Consultations

5.0 on 5.0

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
Abhishek Dugar
CA, Mumbai
3566 Answers
158 Consultations

5.0 on 5.0

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.
Lalit Bansal
CA, Delhi
559 Answers
37 Consultations

5.0 on 5.0

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?.
Vivek Kumar Arora
CA, Delhi
1531 Answers
35 Consultations

5.0 on 5.0

If you are working as an employee with Switzerland company then they will deduct TDS on salary as per there laws and pay you accordingly. 
Swati Agrawal
CA, Indore
667 Answers
1 Consultation

5.0 on 5.0

Ask a Chartered Accountant

Get tax answers from top-rated CAs in 1 hour. It's quick, easy, and anonymous!
  Ask a CA