Income tax
Querist :
Anonymous
(Querist) 03 August 2011
This query is : Resolved
A Indian is employed in Nigeria from 1.4.2006 to 31.10.2007 and during this period his Salary income was taxed in Nigeria. He has no earnings except interest income in India on his Deposits held with Banks during the above period.
He received a bonus payment from his previous employer in India, relating to the earlier years when he was employed in India in May 2006 with TDS deducted at Source.
Should he file his return in India including the Salary received in Nigeria which is already taxed there? Is there a DTTA with Nigeria in those years?
What is his Status during the period under IT.
What would be the components or Heads of Income of his tax returns in India and with what status.
Could the incometax experts clarify the position please.
Vineet
(Expert) 04 August 2011
The person was resident in India during AY 2008-09 (relevant to Financial Year 2007-08) for tax purposes and therefore his global income including salary earned in Nigeria was taxable in India (of course he was entitled for double taxation credit benefit for taxes paid in Nigeria).
The person should have filed his return for AY 2008-09 in India if his total income including Nigeria Salary, Bonus and interest income was more than the taxable threshold limit which I remember was Rs 1 Lakh. The income heads are Salary and Income from other sources.
In any case now the return cannot be filed as last date for filing belated return was 31-3-2010.
Querist :
Anonymous
(Querist) 05 August 2011
Thanks Mr.Vineet. But for AY 2007-08, he was not in India throughout the 365 days. What will happen to the salary received at Nigeria and the Bonus received in India in May 2006, though the period for which Bonus was paid relate to the year he was employed in India.
Also, was the double taxation treaty with Nigeria prevalent during AY 2007-08 and 2008-09. I think it is not so. In that case, the Salary received in Nigeria for which tax was paid in Nigeria cannot be added to the Income earned in India during those A.Years.
Pl clarify if the above are correct surmise.
Thanks once again
