Tax on onsite earning

ashokkumar (Querist) 20 April 2014 This query is : Resolved
Hi,

I worked as a contract employee with a IT company in Kuwait through India based IT company for more than 2 years.

My current company provided work permit for Kuwait and got my monthly salary in my Kuwait local bank account.

But they used to credit the salary after deducting 10% from my salary for first 6 months of the financial year. They used to deposit the 10% amount as tax in India and provided me form 16A(195J).

I want to know whether the 10% tax has to paid, even though the salary is earned from tax free country and also not in India account?

How I can get the tax returns by showing as foreign earning?

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Devajyoti Barman (Expert) 20 April 2014
Since your company has outsourced you in foreign soil, it can deduct TDS.

Rajendra K Goyal (Expert) 20 April 2014
Your contract terms in view of tax rules has to be seen, specifically when you got the status of NRI as per Income tax rules. consult your tax consultant.