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TMI BlogHow to calculate income tax if 7 months in India and 4 months in new ZelandX X X X Extracts X X X X X X X X Extracts X X X X ..... Hi there, In FY 2012-13, my Indian income was from 01-04-2012 to 09-11-2012 and overseas (New Zeland) income was from 06-12-2012 to 31-03-2013. Both incomes are from salary only. My queries are: 1. Which ITR from I should use to file the return? (for previous years I had sued ITR-2 form) 2. I have a house property with three floors. I had rented out ground floor fully in FY 2012-13 and rente ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d out 1st 2nd floors for a period of 3.5 months (Dec 15, 2012 to 31-03-2013) since I have moved with my family to New Zeland in December 2012 and presently living in New Zeland. I have a houisng loan and earlier years I used to take interest of 1.5 lakhs into my calculations. In the present situation, do I have to consider 1.5 laksh or can I consider full HL interest in to calculations (I have p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid 2.26 lakhs as interest on the loan in FY 2012-13)? 3. Is my income earned in New Zeland taxable in India? I receive my salary here after 25% tax is deducted by my employer every month. Please note I am still a RESIDENT of India. I am here on a WORK VISA. 4. How to combine indian and overseas income and file my return. Your advise will be of great help. Thanks regards, Prasad - Rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly By rinki todi - The Reply = Dear Sir, BEing in new zealand on work visa will not be considered as the Income tax act determines the residential status on the basis of stay in India. In your case you have not mentioned the date when you left india. However I would like to Comment that: If you were in India for more than 182 days in the F.Y. 2012-13, than your global income will be taxable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in India and you can claim relief under section 89 as regards the income earned in new zealand and taxes paid there. for further clarification you can contact me at [email protected] - Reply By Prasad Pagadala - The Reply = Hi Rinki Todi, Thank you very much for your clarification. For your info I had left India in first week of December 2012 which emans that I was in India fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r more than 182 days in the FY 2012-13. Can you please help me in eloaborating on how to claim relief under Section 89? I under stood from your response that if the income is taxed in New Zealand, then we need not pay tax in India. Is this correct? regards, Prasad - Reply By rinki todi - The Reply = Sir soory for quoting you the wrong section. relief will be available under section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 90. 1. Relief under section 90: Eg. - In case of Resident individual. Income earned in india = Rs500000 Income earned from foreign = 200000 (tax paid there = Rs.50,000) 1. Total income is = 500000 + 200000 = 700000 2. Tax calculated on 7,00,000/- is Rs. 71000/- 3. averge rate of tax is ( 71000 / 700000) = 10.14% 4.Calculate average tax on foreign income i. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. 200000 x 10.14% = Rs. 20800/- 5. TAx paid in foreign country is Rs. 50,000. 6. Hence relief u/s 90 is lower of 20800 and 50000, i.e 20800/- Therefore tax statement is, TAx on total income = 71000 Less: relief u/s 90 = 20800 Tax payable 50200/- - How to calculate income tax if 7 months in India and 4 months in new Zeland - Query Started By: - Prasad Pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gadala Dated:- 31-7-2013 Income Tax - Got 3 Replies - Income Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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