Income earned in India and Abroad

Hi,

I have been working in India till 31st Jan 2015. After this I was transferred (resigned in India and joined in Finland) and working in Finland from Feb 1st.. my work here is not a project or Short term transfer but a permanent employment in Finland. I got salary and relocation package in Finland in Feb and Salary in March and both were taxed in Finland. Should I show this income for ITR in India. The relocation package is high and was highly taxed in Finland. Is it also taxed in India? Should I show the income earned and received in Finland, in India also. In the same year, I have 3 Form 16's for India itself (Nokia India Pvt Ltd - April to Sep, Nokia Sales Pvt Ltd - Oct to Dec, and Microsoft India - Jan). In the Form 16's the Loss from HP has been incorrectly calculated. While ITR filing, can I file with updated numbers or should I get form 16 corrected and then file the return. From above points, things are very complex to understand for a normal person like me. Need the experts help here please.
Asked 1 year ago in Income Tax from Chennai, Tamil Nadu
From the above submission , it seems that for the assessment year 2015-2016 , you were a resident India as your stay as more than 182 days .  since you are resident , your global income will be taxed in India .  However there are scope for the credit of the tax , you have paid outside India .  India should allow the tax credit as per the DTAA . Thus you can get the relief for the tax that you have paid in Finland under their Income tax laws , provided all the terms of the DTAA are satisfied .

Regarding your income from house property , it has to be recomputed correctly and then loss if any should be claimed as per the law .
Prakash Sinha
CA, Delhi
112 Answers
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Your form 16 will serve the purpose of salary income . So if the correction is required in form 16 for the purpose of salary , you can ask for the corrected one . However for the house property , you can go the recalculation in the ITR irrespective of your Form 16 . however such difference should be  bonafide and  legally explainable .
Prakash Sinha
CA, Delhi
112 Answers
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As you have been working in India till 31st Jan 2015, your residential status is most probably "Resident" (assuming that you were in India for more than 182 days during FY 2014-15). Your entire global income is taxable in India for the FY 2014-15.

As there is Double Taxation Avoidance Agreement with Finland, you will be entitled to claim rebate on taxes paid in India/Finland  as the case may be. 

As regards loss from HP, which is not properly disclosed in Form No. 16, you can claim correct amount in your IT Return. 

Your IT return for FY 2014-15 is not simple but requires proper understanding of your factual and legal situation. Hence, I suggest that you can take appropriate advise from a CA and file the return.   
B Vijaya Kumar
CA, Hyderabad
290 Answers
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In the above case first of all your are resident in India since your stay in India was more than 182 days in the F.y. 2014-2015. In case of income in Finland you need to declare the same at the time of filing Tax returns in India and claim relief U/s.90 of the Income Tax Act,1961.

If you are having 3 form 16 you need to compute your tax liability by taking into account all the income received from 3 companies. The loss from house property wrongly considered in form 16 can be taken care at the time of filing Tax Returns. You can give the interest on Housing Loan certificate to your tax consultant along with 3 form 16  who will calculate the same and arrive at correct tax figures by taking into account all the allowances and TDS.
Shyam Sunder Modani
CA, Hyderabad
955 Answers
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Ok , thanx for appreciation
Shyam Sunder Modani
CA, Hyderabad
955 Answers
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All the best
B Vijaya Kumar
CA, Hyderabad
290 Answers
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For filing your income tax return we have to determine your residential status in India.yHave you left india for the first time or  in earlier years also you were moving in and out of India. For assessment year 2015-16 you have left india on 15-01-2015, it means you were resident in India, as you were  living in india for more than 182 days ie from 01-04-2015 to 15-01-2015. If you have left out of india for the first time, then you will have to offer income earned in india and abroad. for income earned abroad, the tax paid in finland can be claimed as deduction from the tax payable in India based on DTAA between India and Finland. But in case you have left india in earlier years then we have to examine your stay in India in earlier years and if you are a not ordinarily resident in india for asst year 2015-16, then you need not offer income earned abroad in the ITR for asst year 2015-16. Kindly check your stay in India in earlier years.
Vijay N. Kale
CA, Hyderabad
248 Answers
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