Income tax on global income / DTAA for FY 2017-18

Hi,

- As you were resident in India in F.Y. 17-18 therefore your global income is taxable in India. You can claim the credit of taxes paid in UK from the tax payable in India under DTAA.

Thanks

Hi Surabhi,

Hope you are doing well !

Taking benefit of a DTAA involves obtaining a TRC or a tax residency certificate, that helps identify and certify your tax residency status to make sure the correct DTAA has been applied. This is also required by the tax laws in India.

While taking TDS credit make sure you are referring to the correct DTAA. Under DTAA, there are two methods to claim tax relief – exemption method and tax credit method. By exemption method, income is taxed in one country and exempted in another. In tax credit method, where the income is taxed in both countries, tax relief can be claimed in the country of residence.

We may help you for the same.

Thanks & Regards,

Payal Chhajed

Hi Surabhi,

Since you were resident in India in FY 17-18, your global income will be taxable in India. You can get the bwnefit of DTAA and claim credit for whatever taxes were paid by you in UK from the total tax payable in India.

Regards,

Nikhil

Dear Surabhi

You can claim credit of taxes paid in UK in the Indian income tax return. You need to have tax paid certificate with you.

Also, the time limit for filing return of income in India has already lapsed. You can file belated return. Please note that belated return cannot be revised so file your return very carefully.

Hi,

For F.Y. 17-18 you were resident in India therefore your global income is taxable in India.

Now, claim the credit of taxes paid in UK from the tax payable in India under DTAA.

Please note that it is a belated return so file carefully. Belated return can not be revised.

Since you shifted to UK in Jan 2018 you are a resident of India for FY 2017-18 as you correctly mentioned and therefore your global income will be taxed in India.

Now it needs to be made clear what type of income you are earning in UK because DTAA mentions different treatment for different income.

I am assuming you are earning salary income and for salary income it is covered in other income article of DTAA which says that income not covered above and arising in other state will be taxed there itself which means your salary income will be taxed in UK itself.

However if it's teaching income or other professional services income the treatment will be different.

Yes we provide online filing of ITR if you provide all details over eMail but you need to keep it mind that due date for filing return of income has gone and so you will be charged interest and penalty for filing return of income.

The fees will be discussed once we know all the details of income.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

I think this follow up question is meant for Mr Naman.

Please let us know if you need any further assistance.

Hi Surabhi,

Let us know if you have any other queries which we can clarify.

Regards,

Nikhil

Hi Surabhi,

If you need any further clarification, please let me know.

Thanks for your kind words ma'am.

I hope taxfull people helps you.

I have mailed you my opinion.