Receipt of salary from Foreign Comoany

[Mukund Honkan]

Resident  Indian receive salary from foreign company for services rendered from India.

Pl. let us know TDS complainces foreign co should follow & tax implication of individual thanks

[Reshma kochar]

Hi Mukund,

In reference to your query, for salary remitance from Foreign Co.,Withholding of taxes would imply as per local laws of Foreign Co. If there is any provision for withholding of taxes before payment to a non-resident.

As far as Indian taxation is concerned, being a resident his global earning would be taxable in India. However he can claim examption of tax deducted by foreign Co. ( taking into consideration DTAA )

AI Summary

Taxation of global income: resident taxed on worldwide salary with foreign tax credit available under DTAA. A resident Indian receiving salary from a foreign company is taxable in India on worldwide income; the foreign employer's withholding obligations follow its local law. The resident may claim relief for tax deducted abroad by asserting treaty or domestic credit/exemption mechanisms, requiring documentation of foreign tax withheld and application of the relevant double taxation relief provisions in India.