Home |Tax returns filing | I am working as a representative of a foreign company in India. My salary is transferred in foreign currency into my Indian savings account and is net of taxes paid by the company in its country. Do I need to pay tax in India?

I am working as a representative of a foreign company in India. My salary is transferred in foreign currency into my Indian savings account and is net of taxes paid by the company in its country. Do I need to pay tax in India?

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Jithu Jithu
Answered on February 10,2020

Indian income tax laws specify that salary, which is paid for services rendered in India, is considered as income earned in India. Without regard to where it may have been paid, in India or outside India, it shall be taxed in India. Therefore, you must report this income while filing your tax return in India (refer Section 9(1) of the Income-tax Act, 1961). However, relief may be available from paying tax on the same income twice, if a DTAA (Double Tax Avoidance Agreement) exists between the two countries. By applying the provisions of the relevant DTAA, you can avoid paying tax on the same income again.

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