Query regarding declaration of income for tax payment

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  1. abhisince82

    abhisince82 New Member

    Hi,

    I have shifted in end of Nov '15 to Dubai as a change of employment from India, and was working in India prior to this. Thus need to understand which all income I need to declare for I-T submission for AY16-17. I already having F16 from my previous employer in India. So need to understand if anything i am earning in my new job needs to be declared in my submission and if i am liable to pay any tax on this earning in India.
    As i understand if i was in any other country and paying the taxes over there then i shouldn't have been paying taxes in India, and similarly if Dubai i not having any taxes whether I have to pay any in India is what i need to understand?
    Thank you for your help in advance.
     
  2. V K Khanna

    V K Khanna Active Member

    Payment of tax in India on foreign income earned would depend upon the residential status of the individual during the relevant assessment year.

    Since you have been in Dubai since November 2015 and your total stay in Dubai for employment purposes during the financial year 2015-16 (AY 2016-17) is not more than 182 days, your status as per section 6 of the Income Tax Act will be resident individual. Therefore, your foreign income will be clubbed with your income in India and you will be liable to pay tax on the total income as per the slab rate applicable to you.
     
    ZED likes this.
  3. abhisince82

    abhisince82 New Member

    thank you for your advice it will really help me with my filing. have a great day.
     
  4. abhisince82

    abhisince82 New Member

    Just to add one more query to my above query, can you also confirm if i need to declare this as my income even if i have not remitted any amount to india in that particular financial year to either of mine or my parents account. As the salary which I am getting in Dubai is consumed for my expenses in Dubai itself and is not sent back to India for AY 16-17.
     
  5. ZED

    ZED Well-Known Member

    Dear Sir, when V K Khanna sir said that
    It means that this income will have to be considered as your income and will have to be shown in total income liable to tax in India.
    You must be earning tax free income in Dubai, therefore its not like that you are being taxed two times.
     
    V K Khanna likes this.
  6. abhisince82

    abhisince82 New Member

    Thank you for your revert on my query. I am aware that in Dubai there is no tax but then again this depends on country to country as the other expenses which we bear here although not showing any tax break up but are not comparable in price with India or other countries. But irrespective of this point what i would like to understand more on is that there is a dual taxation rule and it is documented in I-T from country to country on the applicability and claim. Thus can you help me understand this rule which can be referred from the below link:
    http://www.incometaxindia.gov.in/Pages/international-taxation/dtaa.aspx

    For UAE.
     
  7. V K Khanna

    V K Khanna Active Member

    Foreign tax relief is admissible u/s. 90/91 only if you have paid taxes on your salary income abroad. The relief in your case is not admissible.

    It is unfortunate that DTAA doesn't take into consideration the cost of living expenses abroad to provide relief to the taxpayer in India
     
  8. V K Khanna

    V K Khanna Active Member

    Pl go through Article 25 of the DTAA with UAE and it will answer your query whether relief is admissible to you or not.
     
  9. abhisince82

    abhisince82 New Member

    Thank you for your response. I have gone through the same but it is too technical for me to understand. But I got the point made by you earlier above, and I hope the same is clarified further in Article 25.


     
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