Income on UAE income

1) Currently ITR for the F.Y. 2017-18 will get processed. Is this the only period you were outside India. If yes then you would be resident in Indian and your global income is taxable in India.

2) what is the nature of your income?. If it is salary then you can not claim any expenses otherwise you can claim them. There is no correlation of VAT paid in Dubai and income tax in India.

3) You need to share more details for computation of total income earned by you in India during f.y. 17-18.

You can email me your docs at [deleted].

If i take 1 AED= 18 INR then salary in terms of rupees for the quarter ending March 18 would be 453600 and total salary would be Rs. 11,03,600. After availing deductions u/s 80C and 80D, net taxable income would be 9,28,600. Tax would be Rs.66,080. I think TDS was also deducted on your salary. We need to check salary structure to save any tax.

Hi,

1. Since you were a resident of India, all your incomes globally will be charged for taxation purpose in India.

2. VAT has got nothing to do with Income tax in India. I guess you have a salary income so you will not get any benefit for the expenses you incurred in Dubai.

3. Taxes can be saved on your income based on the Indian Tax Laws. Some of the heads where you can save taxes are HRA, Sec 80C investments (PF, PPF, LIC premiums, ELSS, etc), Sec 80D (Medicalim for self and family), NPS investments, Housing Loans exemption etc.

Since 2017-18 is over, I doubt if you can do anything now to save further taxes. Whatever you have invested during the period 2017-18 will be considered for tax purposes. You can connect with me for ensuring that you have optimum investments going forward so as to maximize returns and save maximum taxes.

Regards,

Nikhil.

Hi

Since you were a resident in India in FY 17-18, taxes on your global income has to be paid in India.

There would be no deduction for expenses as it is a salary income.

If whole of 80C and 80D are taken benefit for, only option to save taxes is through looking into the salary structure. Computation of income has to be prepared and accordingly return has to be filed.

Hi,

Since you are an Indian resident for FY 2017-18, your global income will be taxable in India.

You can't claim benefit of any expenses.

You can save taxes, if you have opted for HRA, LTA etc. If you haven't opted for the same, you can't do much.

However, you can structure your salary for the current year to save taxes. Let me know if you need any assistance.

As per the fact of the case, you are resident an ordinary resident for this financial year. Hence, yourglobal income will be taxable.

You won't be allowed as any deduction for the VAT paid, as this is an indirect tax levied by other country.

1.Yes your global income will be taxed in India since you were resident during these period.

2.As all your income was from salary ,no claim for expenses available.

3.As time limit to invest for year 2017 18 is already passed ,investment to save taxes can not be done now for these period.Analysis of salary structure may help.

Dear Sir,

The basic principle of Income Tax is to pay taxes only on the Income earned in India so being a resident if you have earned 6.5 Lacs as salary till December, then it will be taxable at slab rates. Further, the salary you received in Indian account is also taxable in India as you are Resident in India but you can get the relief of Taxes deducted by your employer in that country as Federal Tax or Direct Taxes. VAT will not be deducted from you Taxes payable as it is of Indirect Tax nature.

Therefore, in conclusion you have to pay taxes on 6.5L + Foreign Income (less taxes paid there and section 80 deductions).

Thanks,

CA Sourabh Pahuja

1) You were in India during the period from 1st April 2017 to 6th January 2018, which is more than 182 days during the financial year 2017-18. Hence,your income earned in India as well as outside India will be taxable in India, as you are a Resident during the FY 2017-18.

2) The income earned by you in India as well as outside are in the nature of salary income. Salary income is to be taxed on due basis. Thus, even if you have received your salary in April 2018 in respect of salary earned during FY 2017-18, the entire income is taxable.

3) You can claim double taxation relief, if you have tax liability on your income earned in Dubai.

4) You could have save tax on another Rs 1 L, if you had opened an account National Pension Scheme before 31/03/2018. Now its not possible to do so. Whatever allowances are given to you will be exempt to the extent as permitted under the IT Act.