Double taxation

Dear Sir,

As per Indian income tax, you need to show house rent amount in Indian income tax return and pay income tax in India. Further, for bonus, please let us know this bonus pertains to which work? Whether it pertains to work performed in India or in Canada.

Please feel free to call/revert in case of any doubts

Thanks and Regards

Abhishek Dugar

CA CS B.Com

Hi,

You are a Non-resident for Indian Taxation. So, only those incomes accrued or arising in India or Deemed to accrue or arise in India will be taxable in your hands.

From your question, prima facie, the following incomes will be taxable in India:

1. House Rent (Since the property is situated in India)

2) Bonus from Indian Company (Since it is paid by an Indian Company)

Note: Kindly look into the India-Canada DTAA since you may have to declare the same in Candian Income Tax Return also, especially the Bonus. In most tax treaties, Income from immovable properties is usually taxed exclusively in the country where the property is situated. So, I assume you may not have to declare Rental Income in Canada

Dear Sir,

please note that in following cases tax need to paid on the country where income earned.

- House Rent

- Bank Interest

So if this income total exceeds your basic exemption limit than you need to file return and pay tax in india.

Bonus will not be subject to tax in india.

Nope. If you are Non Resident. If you are indian resident than total income earned all over the world is taxed in india and tax if any paid outside india shall be available as credit.

Yes you need to declare the income earned in India and if taxable pay taxes in India.

Yes. You don't have to pay any tax in India for your Canadian Income

Note: This is applicable only if you are a non-resident. As you have stayed in Canada for almost the entire Financial Year (Apr 2016 to Mar 2017) you will be a Non-resident for the purposes of Indian Income Tax.

Dear Sir,

Yes, you have to add bonus along with the rent in your income.

Please feel free to call/revert in case of any doubts

Thanks and Regards

Abhishek Dugar

CA CS B.Com

No, considering you are an NRI, you don't need to declare your candain income in India tax return.

Please feel free to call/revert in case of any doubts

Thanks and Regards

Abhishek Dugar

CA CS B.Com

As you are a Non Resident during the FY 2016-17, your Indian income only will be taxed and your income earned in Canada will not be taxed.

As you are resident in Canada, you need to offer your Indian income also in Canada but you can claim Double Taxation Relief.

Hello Sir,

If you are a non resident in any previous year then your foreign income shall not be taxed in India, but only Indian income shall be subject to tax.

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, ACA, LLB-GEN, CERT. FAFP

Hello Sir,

If you were a Non Resident for any financial year then you are not required to pay taxes on the same in India.

Regards

Keerthiga Padmanabhan

M.Com., CA, LLB