Income tax payment
prasanta kumar parida
(Querist) 28 September 2011
This query is : Resolved
MY CLIENT WHO IS AN INDIAN IS HAVING A COMPANY HOUSE IN LONDON &THERE IS SUFFICIENT DOCUMENTARY PROOF TO PROVE THAT, HE HAS PAID INCOME TAX AS PER THE TAXATION LAW OF UNITED KINGDOM, WHEN THE MONEY AFTER DEDUCTION OF TAX IN UK IS TRANSFERRED TO HIS BANK ACCOUNT IN INDIA, WHETHER HE IS LEGALLY BOUND TO PAY INCOMETAX AGAIN IN INDIA AS PER INDIAN LAW?
Guest
(Expert) 28 September 2011
No. Your client would simply need to show in his return the details of tax paid in UK with proof of payment.
Sankaranarayanan
(Expert) 28 September 2011
yes obsolutly mr ps dhingra explained, yes with the proof of payment is evidence.
prasanta kumar parida
(Querist) 28 September 2011
MR. DHINGRA SAAB,
ACTUALLY I AM A CIVIL &SERVICE LAW EXPERT & MY INITIAL VIEW WAS SEND THE PERSON TO SOME INCOMETAX PRACTITIONER,BUT BEFORE COMING TO ME DUE TO OLD ACQUINTANCE HE HAD APPROACHED ONE OF THE LOCAL I TAX PRACTITIONER, WHO ADVISED HIM TO GO SOME COMPLICATED WAYTO SAVE TAX, BUT MY CLIENT HAS NO INTENTION TO AVOID PAYING I TAX, IF HE IS LEGALLY LIABLE TO PAY SO.AFTER HIS REPEATED REQUEST, I AM ASKING MY FRIENDS & I HAVE NO QUESTION OF DOUBT ABOUT YOUR KNOWLEDGE, BUT SIR, YOU KNOW THE SENTIMENT OF THE CLIENTS & ACCORDINGLY PLZ. HELP ME SO THAT, I CAN SATISFY HIM SHOWING SOME AUTHORITY.
Sanjeev
(Expert) 28 September 2011
The Income earned in UK will not be taxable in India as this is covered under the Double taxation Avoidance agreement with UK but if any Income is earned on that money in India than that will be chargeable to tax in India. This means that if he earns Interest on the funds from bank deposits that are transferred from UK then that will be chargeable to tax here in India.
prabhakar singh
(Expert) 29 September 2011
Expert : Sanjeev has already given you the right answer,it is only the Double taxation Avoidance agreement with UK,if it is there of which i am not aware,can keep you away from paying the tax in india.
prasanta kumar parida
(Querist) 29 September 2011
MANY MANY THANKS PRAVAKAR SAAB,FOR EXECUSING MY AADAMENT BEHAVIOUR TOWARDS YOU& FOR VOUCHING THAT, 'THE ANSWER OF EXPERT SANJEEV IS CORRECT'WHEN I HAD EXPECTED THE DISCUSSION IS OVER
Guest
(Expert) 29 September 2011
Dear Prasanta,
Under double taxation avoidance system, your client is not legally liable to pay any tax on any amount that has already been taxed at his hands, may that be in any other country (UK here). So, he need not worry about that. He just need to show the income receipt proof from UK in his Income tax Return and attach proof of tax paid on that amount in UK.
However, as has rightly been advised by Mr. Sanjeev, any income derived as interest earned in India on that amount, would definitely be taxed in India.
prasanta kumar parida
(Querist) 30 September 2011
I HAVE NOTHING MORE TO SAY THA NAMASKAR MY ELDER BROTHER(IN ORIYA LANGUAGE)FOR ALL SUCH BLESSINGS BESTOWED ON ME BY SUCH AN IMPORTANT PERSONALITY OF MY COUNTRY
Guest
(Expert) 30 September 2011
Dear Prasanta,
Your satisfaction is important to us.
