How to calculate income tax if 7 months in India and 4 months in new Zeland

[Asked by Guest]

Hi there,

In FY 2012-13, my Indian income was from 01-04-2012 to 09-11-2012 and overseas (New Zeland) income was from 06-12-2012 to 31-03-2013. Both incomes are from salary only. My queries are:

1. Which ITR from I should use to file the return? (for previous years I had sued ITR-2 form)

2. I have a house property with three floors. I had rented out ground floor fully in FY 2012-13 and rented out 1st & 2nd floors for a period of 3.5 months (Dec 15, 2012 to 31-03-2013) since I have moved with my family to New Zeland in December 2012 and presently living in New Zeland. I have a houisng loan and earlier years I used to take interest of 1.5 lakhs into my calculations. In the present situation, do I have to consider 1.5 laksh or can I consider full HL interest in to calculations (I have paid 2.26 lakhs as interest on the loan in FY 2012-13)?

3. Is my income earned in New Zeland taxable in India? I receive my salary here after 25% tax is deducted by my employer every month. Please note I am still a RESIDENT of India. I am here on a WORK VISA.

4. How to combine indian and overseas income and file my return.

Your advise will be of great help.

Thanks & regards,

Prasad

AI Summary

Residency-based taxation: foreign salary included in worldwide income with tax credit relief under the tax-treaty mechanism.
Residency-based taxation makes worldwide salary taxable if the taxpayer meets the stay-based residency test. Double taxation relief under the tax-treaty/relief mechanism is calculated by adding Indian and foreign salary to compute tax on total income, deriving an average tax rate, applying that rate to foreign income to get the allowable creditable amount, and allowing relief equal to the lesser of that amount and foreign tax actually paid; a numerical example illustrates the tax credit method. Questions on the correct return form and housing loan interest treatment were raised but not resolved.