Hi, I am a resident Indian and do not qualify for as an NRI (more than 182 days). I work in an an MNC in Singapore and my salary is credited to my Indian Bank account in US Dollars. What is my taxable status when: 1. If my company deducts tax as per Singapore law 2. If no tax is deducted by my company and payment is made as professional service fees
RE:Foreign Currency Income
by Amitabh on May 05, 2007 10:37 AM Permalink
If you are resident and ordinarily resident in india,you will be taxed in india for income earned and received anywhere in the world.However,if the income is also taxed in Singapore on your salary or professional fees,you can claim relief in India for the tax paid/deducted at singapore in terms of Double taxation Avoidance Agreement,if any between India and Singapore or if none exists,interms of sec 91 of the income Tax act.This section allows unilateral relief to an Indian resident for the tax on doubly taxed income at the rate at which tax is paid abroad or Indian rate,whichever is lower.
