Income tax liability in India for working for abroad being in India

Hi Mayank

Since you will be a resident for FY 21-21 in India, your global income shall be taxable in India. You can claim Foreign tax credit of taxes paid in Phillipines.

For claiming FTC, you need to file form 67 before filing ITR.

We may assist you with the filings.

Dear Mayank,

Hope you are doing well !!

In your case, you will be treated as resident because you have spent more than 182 days in India.

-You need to pay taxes on global income i.e. income earned in India as well as income earned outside India.

-However,You can claim the credit of taxes paid in Philippines 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

We may assist you in entire procedure.

It is advisable to take a phone consultation for detailed discussion.

- While filing ITR in India, you can claim benefit of tax paid in Manila. File Form 67 before filing of ITR.

Hi

As your residence status will be resident india iherefore your global income will be taxable.

However you can get credit of tax paid outside india .

You need file form 67 before filling ITR.

Hello,

For F.Y. 20-21, you would be a resident Indian and hence your global income would be taxable in India.

Foreign Taxes paid would be available as a credit against the income tax liability in India.

I hope this answer satisfies your requirements.

Regards,

CA Hunny Badlani

I appreciate your kind words.

Yes, it will be termed as the income sourced from India.

However, you can claim the credit of taxes paid in Philippines while filing ITR in India.

No, there won't be any double tax liabilities.

It is advisable to take a phone consultation for detailed discussion.

Hi

Yes your understanding is correct income from 'April to July' was earned being in India, it will be termed as income sourced from India

You would be eligible to claim FTC. The same income would not be taxed twice in accordance with the DTAA.

Dear Sir,

Your Salary will be taxable in India, If you were resident in India for the F.Y 2019-20.

If you fulfil below given Conditions then it will be taxable in India.

You are considered an Indian resident for a financial year: i. When you are in India for at least 6 months (182 days to be exact) during the financial year ii. You are in India for 2 months (60 days) for the year in the previous year and have lived for one whole year (365 days) in the last four years If you are an Indian citizen working abroad or a member of a crew on an Indian ship, only the first condition is available to you – which means you are a resident when you spend at least 182 days in India. The same is applicable to a Person of Indian Origin (PIO) who is on a visit to India. The second condition is not applicable to these individuals. A PIO is a person whose parents, or any of his grandparents were born in undivided India.   You are an NRI if you do not meet any of the above conditions.

Thanks and Regards

Shiv Kumar Agarwal

This income was paid by your employer after deducting taxes, so you are eligible to claim FTC on this income in India.

I need to go through your terms and conditions of employment and also check DTAA to give you a proper reply.

Generally any income is taxed in resident country and if tax has been deducted in other country one gets a credit of same in resident country.

So you should get the credit of that taxes but you will have to pay tax on same in India.

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

Thank you.

I need to properly read language of the DTAA but if tax has been deducted in other country when same was taxable in India then there are strong chances you will get its credit.