Dear Sir, My boss is a foreigner. His salary is divided into two parts. One indian part is of some 1.5 lakh rupees. And foreign part is 1 million rupees a month. Now he wants his foreign part of salary that is 1 million rupees to be transferred to the bank account in India. So, he wants to know that if he transfers his 1 million rupees(which is roughly 12,500 Euros) every month to India, will it be taxable? If yes then what is the percent? He is 77 years of age . He files ITR in India for his Indian salary. Regards, Neeraj Kumar
Dear Sir,
Hope you are doing well !!
No tax is applicable on the money being transferred from abroad to India. None at all.
This is because you’d have already paid tax on the income you are earning in the country abroad.
India has signed the Double Taxation Avoidance Agreement with foreign countries.
If you have already paid tax on the income earned abroad, then you need not pay tax when transferring that money back to India.
Hello,
Income Tax in India is applicable based on the residential status of the assessee. Assuming that your boss is a Non-Resident and earns the salary from his employment abroad, such income from employment won't be taxable in India.
I hope this answer satisfies your requirements.
Regards,
CA Hunny Badlani
If he is an NRI and source of income is abroad then the amount transferred will not be taxable.
Is he a resident?
If not such remittance won't taxable.
If he is ordinary resident his full income will be taxable.
We can discuss it further over call.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
Hi
In most of India's tax treaties, you dont find receipt bases taxation. This, just because salary is received im Indian bank account, should not make the salary taxable in India. I have assumed that your boss is a non resident and salary is earned for the employment exercised out of India.
Having said that, one should look into the tax treaty of the country with India where your boss os resident.
Hi
If your boss is a non resident it will not be taxable in india.
IF he earn or recd any income in india then laible to pay tax thereon but if he is Non resident and transfer foreign salary from his own bank a/c to india bank a/c then not be part of indian income, but ensure residential staus carefullu
