Do I need to pay income tax on foreign income?

Do I need to pay income tax on foreign income?

I am an Indian and has been working in India since last 12 years. Now, I am moving to Singapore on 15-November-2017 for work (got job offer from company in Singapore) and will be getting salary from Singapore employer directly to the salary account to be opened in Singapore. I have below 3 questions.

1) Do I need to pay the income tax to Indian government for salary, which I will get for remaining fiscal year that is November-2017 to March-2018?

2) Also, I will be working in Singapore for next 2 years. Do I need to pay income tax to Indian government for the entire employment period in Singapore?

3) If the answer to question 1 is YES, then are there any options/alternatives to save the huge tax on foreign income?

Asked 7 years ago in Income Tax

Based on the India Singapore DTAA,

1. The income earned in Singapore shall not be taxable in India.

2. No income tax in India.

Lakshita Bhandari

CA, Mumbai

5687 Answers

943 Consultations

Talk to Lakshita Bhandari

Hi,

It will require study of India Singapore DTAA to conclude whether you would be liable to pay tax in India or not.

If you are liable to pay tax in India for your Singapore income then you will also be eligible to take credit of taxes paid in Singapore.

Abhishek Dugar

CA, Mumbai

3576 Answers

183 Consultations

Talk to Abhishek Dugar

Hi,

For this fiscal year, you would have stayed in India for 182 days or more. Hence, you would have to pay tax on the entire income including Singaporean income. However, the taxes that you have paid in Singapore will be reduced from the tax liability in India, and the difference if any will be payable or refunded to you.

For the next 2 years, since you would be in India for less than 182 days, tax will not be payable in India on the Singaporean income.

Regards,

Keerthiga Padmanabhan

M.Com., CA, LL.B