Salary from a foreign Comapny

[Shama Sarin]

A RNOR receives salary from a foreign company not having any setup in India.He is the only employee in India working from his home in Delhi.He gets the salary credited to his bank account ever month.The employee wants to have the breakup of salary in such a manner that he gets the maximum benefit out of it.Is it necessary that the company issues Form 16 & Is it possible for a foreign company to take a PAN & TAN no?& What is the procedure for the same?

AI Summary

Foreign Salary Taxable in India for RNOR; Consider Consultancy Fees to Avoid TDS Deduction Obligations Under Section 192. An individual residing in India and classified as a Resident but Not Ordinarily Resident (RNOR) receives a salary from a foreign company without an Indian presence. The individual seeks to maximize tax benefits and inquires about the necessity of Form 16 issuance and the possibility of the foreign company obtaining PAN and TAN numbers. Responses indicate that salary is taxable in India as services are rendered there. It is suggested that the company categorize the payment as consultancy fees to avoid tax deduction obligations. If designated as salary, the company must deduct TDS and obtain a TAN.