TDS on salaries to non resident

[Guest]

Sir,

Suppose the Private Ltd Company situated in India pays the salary in Foreign Currencies i.e. in Singapore Dollar to the employee whose nationality is Malesia of Rs. 14000 per month net of taxes. Whether  this company has to deduct the tax if yes, at what rate. Also let us know whether the company has to furnish every month form CA and form 15CB for such remittance. Please provide us the detailed calculation sheet.  You are also requested to advise us whether deduction under section 80C is available or not for such NRI employee.

[Anuj Gupta]

Here the applicable section is 192 and not sec 195.

Also the important question is where the employee is posted or rendering his services , that only shall decide about taxability of such NR employee.

Also if the salary is Rs.14,000/- net of taxes then there is no liabilty of TDS as net income of NRI shall not exceed the minimum income not chargeable to tax i.e. Rs. 1.8 lakhs.

Yes deduction u/s 80 C is available to NR employee.

 

Anuj

AI Summary

TDS on Foreign Salaries: Section 192 Applies, No Liability if Income Below Rs. 1.8 Lakhs, Deductions Under Section 80C. A query was raised regarding tax deduction at source (TDS) on salaries paid in foreign currencies by an Indian company to a non-resident employee from Malaysia. The employee receives a net salary of Rs. 14,000 per month. The response clarified that section 192, not section 195, applies, and the taxability depends on where the employee is rendering services. Since the net income does not exceed the minimum taxable limit of Rs. 1.8 lakhs, there is no TDS liability. Additionally, the non-resident employee is eligible for deductions under section 80C.