Expatriate workers' entire salary taxable

Foreign Enterprises

 As per Section 9 of the Act, or arise in India if it is earned in India.

 The salary relating to the period during which service is rendered in India shall be treated as earned in India and, therefore, will be liable to tax in India.

 The implication of this provision is that an expatriate employee, who receives his salary wholly outside India, or partly in his home country and partly in India, is liable to pay tax in India on his entire salary, including the portion of salary received outside India.

 These provisions are, however, subject to any specific provision contained in the tax treaty between India and the foreign country to which the employee belongs.

 The meaning of the term

image
Business Standard
177 22
Business Standard

Expatriate workers' entire salary taxable

Foreign Enterprises

H P Agrawal  |  New Delhi 



 As per Section 9 of the Act, or arise in India if it is earned in India.

 The salary relating to the period during which service is rendered in India shall be treated as earned in India and, therefore, will be liable to tax in India.

 The implication of this provision is that an expatriate employee, who receives his salary wholly outside India, or partly in his home country and partly in India, is liable to pay tax in India on his entire salary, including the portion of salary received outside India.

 These provisions are, however, subject to any specific provision contained in the tax treaty between India and the foreign country to which the employee belongs.

 The meaning of the term

RECOMMENDED FOR YOU

Expatriate workers' entire salary taxable

Foreign Enterprises

Income is taxed in India on the basis of receipt or accrual. The income from salary, however, stands in a peculiar position under the Income Tax Act.  As per Section 9 of the Act, or arise in India if it is earned in India.

 The salary relating to the period during which service is rendered in India shall be treated as earned in India and, therefore, will be liable to tax in India.

 The implication of this provision is that an expatriate employee, who receives his salary wholly outside India, or partly in his home country and partly in India, is liable to pay tax in India on his entire salary, including the portion of salary received outside India.

 These provisions are, however, subject to any specific provision contained in the tax treaty between India and the foreign country to which the employee belongs.

 The meaning of the term
image
Business Standard
177 22

More News

  • Manufacturing growth outlook rises
  • Railways seeks FinMin nod to raise $500 mn via Masala bonds Railways seeks FinMin nod to raise $500 mn via Masala bonds
Widgets Magazine

Widgets Magazine

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard