@Sakshi_Shah1 can you help ?
Hey @dipu
DTAA credit can be claimed by a taxpayer irrespective of the residential status. Credit of foreign tax paid can be claimed as per the provisions of the DTAA Agreement between both the countries. If the same income has been taxed in both the countries, you can claim the credit of foreign tax paid when you file your ITR in India.
You can connect with a tax expert if you need more help with your taxation - Ask an Expert
What if i claim from both the countries ?
Hi @HIREiN
DTAA Tax Relief cannot be claimed in both countries. If you claim tax credit in India, ITR does not get successfully processed unless you file Form 67 alongwith the proof of tax paid in foreign country.
Hey @Sakshi_Shah1,
I live in NYC, and come under RNOR so I pay high state tax and city tax on top of the federal tax and social security tax. I need to figure out what the right path forward is in terms of claiming tax relief while filing taxes in India. The US-India DTAA agreement Sec 25 is ambiguous about the relief that can be claimed in terms of Income tax.
Which part of my US income exactly can I claim tax relief for?
Is it Federal or Federal + State or Federal + State + Social Security.
Please advise
The income earned in the US (NYC) is not taxable in India as you are an RNOR and hence you cannot claim any tax relief in India.
Hi,
I am being transferred to our company’ Singapore Branch effective 1st Dec 2023.
I will not be paid anything in India but in Singapore effective 1st Dec 2023.
I came to know that I will have to pay tax for this income in Singapore in both the countries.
Dec 23 to March 24 in India as income from foreign country
As Singapore follow the tax cycle as Calendar year Jan to Dec. and whatever I will be earning in Singapore will also be taxed there.
Kindly help me understand how can I avoid this tax implication on me.
Also is there any tax relief on me for this salary income under DTAA between India and Singapore?
Looking forward to your expert advices.
regards
Pawan
Hello @pawan2paw
First, since you stayed for more than 182 days in India, you will be resident of India for FY 2023-24. Thus, salary income received for a period from December 2023 to March 2024 will be taxed in India and Singapore both.
There is DTAA between India and Singapore and thus you can claim the credit of taxes paid/withheld in Singapore for the aforesaid period when you file your taxes in India.
For detailed understanding of tax implication on the same, you can also Book a MEET with our tax expert who shall understand the situation and help you with the taxes on Salary income earned in Singapore.
Thank you.
1 Like
Thanks for explaining.
What I understand is that I will have to pay taxes in Singapore and while filing ITR in India, claim refund or pay the excess liability.
But I guess I will be paying tax in Singapore at the end of Dec 2024 for Jan 24 to Mar 24.
ITR filing in India for Dec 23 to Mar 24 will be somewhere around July or sep 24
Please guide
Regards
Pawan
Hi @pawan2paw
In our opinion, we recommend to take TDS credit only upto December 2023 which is being paid in Singapore and not for January 2024 to March 2024. The same you can claim next year in India.
Thus, in your case, Tax paid in Singapore for December 2023 can only be claimed while filing ITR for FY 2023-24 in India in June 2024.
Thank you.
Great. Thanks for help. Really appreciated.
Will keep.this.8n.m9nd and will work with my support team in India and in Singapore