I am an Indian, deputed to my Co's subsidiary in Nepal, for a few yrs. My salary account is at India where the salary gets credited - subsequently the amount gets debited to the subsidiary at Nepal. What should be my status as far as IT is concerned? Thanks in anticipation of response/ guidance. Regards, Sam
RE:Income Tax Liability
by Amitabh on Apr 29, 2007 11:13 AM Permalink
You are a non resident in India but since you are receiving the salary in India,you have to pay tax thereon in India.As you are a resident of Nepal,you may also taxed for the same there.If that be the case,you have to take recourse to the double taxation avaoidance agreement if any exists between india and nepal to get relief.However,sec 91 of income Tax act allows tax credit for doubly taxed incomes even where no DTAA exists bbut that relief is avilable only to indian residents.
RE:RE:Income Tax Liability
by Jagdish Nagdev on Apr 29, 2007 12:19 PM Permalink
Dear Sir I wish to clarify here fuether that if income is transfered to Indian a/c by the subsidiary co. in foriegn currency the same will be exempted from being taxed. If the local co. tranfer the salary here in INR the same will be taxed. Regards
