Tax on income from a Foreign source

[Sushil Rawal]

Hi,

Can I please get someone to answer as to what are the Tax obligations on an individual and a company where in an individual, an indian resident, gets paid for his services from a Foreign company directly money getting credited into his bank A/C and Foreign compnay has no local presence in India taking services of this individual from remote?

Many thanks in the anticipation of a prompt response !!

 

Thanks/Sushil

AI Summary

Indian Resident's Global Income Taxable Despite Foreign Company Payment; No Tax Deduction Required by Foreign Entity. An individual, an Indian resident, inquired about tax obligations when receiving payment for services from a foreign company with no local presence in India. A tax advisor clarified that the individual's global income is taxable unless exempted by the Income Tax Act. The advisor further explained that the foreign company is not required to deduct tax, as the law does not extend beyond its territory. Despite the services being considered an export, they are taxable with no exemptions. The individual sought further clarification on the company's tax responsibilities under these circumstances.