Hi Guys,
I need an urgent help as the due date to file the return of income of Individual is today.
Following is my case :-
A resident of India leaves India for employment in the month of January 2022. He has earned Salary Income in Germany for the month January, February and March 2022. Since he is a resident of India, his global income would get taxed.
However, as per Para 2 of Article 15 of India-Germany DTAA, it is my understanding that such salary income is not taxable in India. I’ll quote below the relevant extract for your ready reference
"ARTICLE 15
DEPENDENT PERSONAL SERVICES
1.Subject to the provisions of Articles 16, 18, 19 and 20, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable in the other Contracting State only if the employment is exercised there.
2.Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if :
(a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in the fiscal year concerned, and
(b)the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State, and
(c)the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State."
Now, my question is, can I say that the income is not chargeable to tax in India? (Since, the treaty or the act, whatever is beneficial to the assessed is followed?)
OR
Do I need to file Form No. 67 and claim credit of the taxes paid in Germany? (The assessee does not have any tax deduction certificate, he has only the payslip where in tax has been deducted - Further, if I have to file Form 67 - it has to be filed before or on the due date of Original return).
Request you all to please guide on the same. Thanks a ton!