I would like to request you to clarify my doubts about payment of income tax on the global income of a resident.
I am an employee of the Govt of India. With the approval of the Govt of India, I am on secondment ( deputation) to the Govt of UAE to work on a pilot project of the Govts of India and UAE. In fact, I am on an employment visa of the Govt of UAE and getting salary from UAE Govt. I joined UAE Govt on 3rd January, 2010. I will go back to India on 2nd January, 2011. I get a lump sum salary( all inclusive). I send remittances to my wife’s savings bank account. Now my questions are— (i) For the FY 2009-10, will I be treated as a resident for the purpose of Indian Income Tax? (ii) Do I have to pay income tax to Indian Govt on my salary from UAE Govt for Jan-Mar, 2010? (iii) If (ii) above is yes, how my taxable income will be calculated? I mean, whether any documentary proof is required or not. Further, how the conversion of currency will take place, i.e. at what rates ( Is there any official rate or depends on the market rate of exchange). (iv) Will I get any exemption in determining my taxable income? Because the house rent here is around Rs 50,000 per month. (v) How will I pay the income tax, who will calculate and how to file a return? (vi) Here, there is no tax on my salary. They do not even issue any pay slip. Gagan Rawat
