Mumbai: The recent decision on the Tax Bench Appellate Tribunal (ITAT) will be very helpful for the nonresident, such as global cellular employees, which because the original causes cannot submit a certificate of foreign tax residency (TRC) along their income tax (IT) Return in India, but train it after the assessment stage.
It has been holding back the rejection of a lower tax rate according to the Indian-US agreement, in the hands of US tax citizens, in the income of India’s income “is truly wrong and wrong place,” only because the TRC from the US authorities is not equipped with IT officers during the assessment, But it is produced at the next stage before the commissioner (appeal).
Non-citizens are generally taxed in India, only regarding their Indian source revenue – said bank interest, interest in remained deposits, rent from property in India, dividends from investment in India.
Taxpayers can choose to be regulated by Indian Income Tax Act or Tax Agreement, which is more profitable.
In this case, which was heard by itat, in FY14, Haresh C Seth, a non-resident, had received bank interest and interest in remained deposits minus RS17.9 Lakh.
However, I-T officers refused to apply a tax rate of 10% lower and 15% available under the Indian US tax agreement.
Commissioner also uphold this action, because he concluded that Seth failed to submit a TRC and FORM10F (which provided details of the foreign tax residency) with I-T officers during the assessment.
Itat considers sincere challenges like a very short period of time provided to give TRC to I-T officers.
Itat upholds the tax agreement assistance on the delayed TRC
