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

Indian Employee's Foreign Salary: Tax Implications & DTAA Exemption Considerations for Global Income Taxation A resident Indian receiving a salary from a foreign company for services rendered in India must consider tax implications. The foreign company should comply with its local tax laws regarding withholding taxes for non-residents. In India, the individual's global income is taxable, but they may claim an exemption for taxes deducted by the foreign company, considering any applicable Double Taxation Avoidance Agreement (DTAA).