I am a government employee. I am on deputation abroad on loss of pay since august 2005 and will be returning in june 2007. I have filed the income tax returns for the financial year (April 2004 to March 2005) in India. Then, I have filed income tax returns abroad for the year 2005 (jan 2005 to dec 2005, since the financial year is same as the calender year here) and 2006 (jan 2006 to dec 2006). Once I come back to India in June, I am not sure how to go about my income tax filing. For the period Jan 2007 to June 2007, the tax has been deducted at source monthly and paid to the income tax office here. Any refunds will be obtained only after I file the income tax returns. Can u advice me on this.
RE:income tax filing
by Amitabh on May 03, 2007 07:40 PM Permalink
For the year 2004-05 you were Indian resident so you had to file the return.For 2005-06 you were a non resident so you did not have to file any return assuming you did not have to pay any tax in India.Now for 2006-07 you are again a non resident as you returned only in June 2007.But tax has been deducted from Jan 2007 itself.So if the tax to be paid by you is less than what has been deducted for the period Jan to mar 2007,you are advised to file return and claim the refund.You must be having PAN.Even if filing the return is not mandatory you can still file it.And you are in any case advised to do so even for 2006-07 as without this you cannot claim refund of the tax deducted at source.You may show all your foreign income as exempt from tax as you were not a resident in 2006-07.
RE:income tax filing
by snehidhan on May 03, 2007 08:43 PM Permalink
Thanks for ur advice. But, still I have some doubts.
1. Should I have to file income tax returns for the year 2006-07 in India for the income received abroad (April 07 - June`07) and the income I will be receiving from (july 07 to March 07) in India. In this case, how I will get back the tax deducted (the tax amount is calculated assuming 0% rebate, the rebate is claimed only on filing the return) by my foriegn company and paid to the income tax department abroad. Secondly, can I get any exemption for the income obtained from the foriegn country for April 07 to June 07.
2. Will it be alright (I am sure it may not be so) if I file income tax returns in both the countries separately ie., for the income from Jan 2007 to June 2007 abroad (I stress again, the financial year is Jan to Dec)and for the income from July 07 to March 07 in India. In this case, I can get back the excess tax from the income tax department abroad.
RE:income tax filing
by Amitabh on May 04, 2007 07:19 AM Permalink
The question is - are you being doubly taxed for the same income - abroad as well as in India ? If that be the case,you can get the relief for the same in India when you file your return as per the double taxation avoidance agreement if any exists between india and that counrty,or as per the provisions of Sec 91.Bur Sec 91 allows relief only if you are an Indian resident in the relevant financial year and you have earned income abroad which has been taxed in the other country.As you are Indian resident,you will be taxed in India too for the same income so you can get credit in India of that tax paid abroad as per sec 91.For availing this relief you have to file your return for those years.
