Hi, I'm working with a US company, and we don't have any registered office in India. They make monthly payment directly to my account. Can I break up my salary and claim, HRA, conveyance fee and all ?
Dear Sir,
I would not suggest you adopting such measures as your Company is a Foreign Company and is not issuing you either a Salary Slip or a Form 16.
It will be a bit difficult to substantiate, to the Income tax people if in future you receive a notice from them.
Hope this clarifies your query.
Feel free to get back for further clarifications.
Regards,
CA Rohit R Sharma
BCom, CA, LLB - Gen, Cert FAFP.
Thanks for your response :) What if my company can provide break up salary slips ?
Yes we need to verify the Pay slips and the terms of your engagement.
So if my company provides me a break up salary slip, i can get exceptions right ? Please let me know what you need to see. As of now, my slip doesn't breakup but I can get it splitted if it works.
Dear Sir,
You may ask your Company to Provide you a Salary Slip with all the necessary deductions and also deduct appropriate taxes. After the end of Financial Year, they may have to issue you a TDS Certificate as well, to claim your Tax component.
Hope this clarifies your query.
Feel free to get back for further clarifications.
Regards,
CA Rohit R Sharma
BCom, CA, LLB - Gen, Cert FAFP.
If you can get your salary split into various components like HRA/CLA and other perquisites, you can claim deductions/exemptions as applicable to you.
Though your employer has no registered office in India, tax is yet to be deducted u/s 192. If you are the sole employee, you may also be considered as PE(Permanent Establishment) to comply with the tax laws on behalf of your employer. Otherwise, the premises from which the company is operating in India will be treated as its PE.
You can do the same while filing your tax returns