What is to be filled in Schedule FSI for residents in Kuwait?
Since January this year, I've been working for a company in Kuwait (And I'll be continuing to work here). Till september, I was working for an Indian private company. I have the form 16 from the Indian company which allows me to fill the ITR with income earned in India.
I've come to understand that since, from January, I was working in Kuwait, I'm still a resident of India for the FY 2014-15 and I've to declare the income earned in Kuwait. The income earned in Kuwait is still in a Kuwait bank in Kuwait currency (KWD) - that is, the income hasn't been remitted to India. Therefore the salary income earned in foreign currency (KWD) would have to be converted into rupees using the SBI TT buying rate as on the last day of the month immediately preceding the month in which the salary was paid(a). This exchange rate amount has to be got by paying a service charge to SBI Branch dealing with foreign Exchange transactions, on payment of certain service charge. (b)
When filling the income tax, I've declared the Indian salary, Kuwait salary in ITR2 under schedule s in salaries. Under Schedule FSI, after filling the 'Country Code', 'Taxpayer Identification number' (filled with Passport number) & Salary 'Income from outside India(included in PART B-TI)' converted using the exchange rate, the 'Tax paid outside India' is ?0. This is because Kuwait doesn't take any tax from salary.
Now, I'm not sure what needs to be filled for 'Tax pay on such income under normal provisions in India' and what is to be filled for 'Relevant article of DTAA if relief claimed u/s 90 or 90A'. Some sources indicate that for these fields I'm supposed to find relief mentioned in the DTAA article and the article number and fill the above fields respectively if there's a bilateral agreement between the two countries. However, I'm not sure where I can find this information. I know this much that Kuwait and India have signed the DTAA agreement.
I've also noticed that since 'Tax paid outside India' is ?0 there won't be any tax relief calculated.
Therefore my questions are:-
What is supposed to be filled in fields 'Tax pay on such income under normal provisions in India' and 'Relevant article of DTAA if relief claimed u/s 90 or 90A'?
Since I don't have to pay an tax in Kuwait, will I have to pay the complete tax on the amount earned in Kuwait without any relief?
Looking forward for any assitance I can receive on this.
Asked 3 years ago in Income Tax from Mumbai, Maharashtra
I presume you are a resident in India for f y 2014-15 by virtue of your stay for 182 days in india and since there is no tax payment in Kuwait there will not be any relief under DTAA.
As there is no tax liability on your income earned in Kuwait, DTAA relief will be NIL for you in India.
Yes as per our view you need to pay tax in india.
In that case, I suppose only 'Schedule FSI' needs to be filled in ITR2. 'Schedule TR' should be left blank.
a) Is the above statement correct?
b) And while filling 'Schedule FSI' what should be filled for 'Tax pay on such income under normal provisions in India'?
c) Should 'Relevant article of DTAA if relief claimed u/s 90 or 90A' be left blank?
Kindly assist with this queries.
Asked 3 years ago