Depositing my European Salary to Indian account would be taxable?

Hi

Since your period of stay in India for FY 19-20 would be more than 182 days, you will be a resident. Being a resident, you will have to report all your global income in ITR and pay taxes in India.

1. If tax has also been paid in Germany, you can claim FTC and file form 67 before filing ITR.

2. Yes.

3. Yes.

Hi

1.Yes  you have  to pay tax on income because you are a resident as your stay in India  more than 182.  You have to report global income. But you can claim FTC on tax paid in Germany in file form 67 before filling ITR.

2. Yes

3. Yes

No issues.

Interest earned on such deposits shall be taxable in India.

Would you like to know about FY 2019-20 or 2020-21?

As you were in India for more than 182 days in previous year and I am assuming you were in India before Dec 2019 so you are ordinary resident and hence your global income would be taxable in India.

You can get credit of tax paid in other country depending on DTAA.

Yes you can transfer and create FD.

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

Thank you

Yes it will be taxable

Hi

Yes return on FD will be taxable.

Your income will be taxable in India as per your tax residential status.  Since, you have been away only for a short period and I would assume you have been in India prior to Dec 2019 as well.  Hence, you will be ordinary resident in India for Year ended March 2020.  Ordinary resident is taxable in India on worldwide income.  

Whether you transfer that money in India or not, you are liable to tax on that amount in India.  However, you can claim tax credit for taxes paid in Germany in India, hence, you would not be liable for additional tax.  

You can transfer that amount to your saving account in INdia.  Also, you may create FD, the interest earned on FD will be taxable in India 

Hello,

You would be considered a resident for the F.Y. 2019-20. Your global income would be taxable in India. Taxes paid in the foreign country would be available as a credit against the income tax liability in India.

You can transfer the funds to your savings account and utilize it for investment in FDs.

I hope this answer satisfies your requirements.

Regards,

CA Hunny Badlani

Interest earned on the FDs would be taxable.

1. If you are working for German employer, income will not be taxable.

2. You can transfer to your savings account.

3.You can create FD. But income from FD will be taxable in your hands.

1) Since you went to Germany in Dec 2019 and came back in Feb 2020, it is assumed your period of stay in India during previous year 2019-20 was more than 182 days and you were also fulfilling the two additional conditions for being a resident and ordinary resident in India. In case of ROR, global income is taxable in india subject to foreign tax credit relief. If any tax has been deducted on your salary in Germany, it would be considered as FTC subject to Indian income tax law. You need to file form 67 before filing of ITR. ITR-1 is applicable in your case.

2) Yes you can repatriate the amount. You can convert the NRO account to normal saving bank account. Interest on NRE account is exempt. Retain the withholding tax certificate if any.

3) Yes you can create the FD. Interest on FD will be taxable

Dear Sir,

Hope you are doing well !!

-You can claim the credit of taxes paid in Germany while filing ITR in India.

As per the tax laws of India, sections 90 and 91 of the Income-tax Act deal with the concept of FTC. Section 90 discusses claiming of FTC in a case where India has entered into a Double Taxation Avoidance Agreement (DTAA) with another country.

Under these sections, if the taxpayer is a resident of India, and he has paid taxes outside India, he can claim a credit of such foreign taxes paid against his tax payable in India.

In accordance with Rule 128, in order to claim FTC, the taxpayer is required to file following documents on or before due date of filing of return:

1. A statement of :

• foreign income offered to tax
• foreign tax deducted or paid on such income in Form No. 67

1. Certificate or statement specifying the nature of income and the amount of tax deducted therefrom or paid by the taxpayer :

• From the tax authority of the foreign country
• from the person responsible for the deduction of such tax
• signed by the taxpayer

1. Proof of payment of taxes outside India

2. Yes.

3. Yes.

We may assist you in entire procedure.

Yes, interest on FDs will be taxable.