Income Tax TDS on Salary of Non Resident
(Contact us on taxheal@gmail.com) . Income Tax TDS on Salary of Non residents paid in India
Following is calrification as per Salary TDS for FY 2021-22 (AY 2022-23 ) CBDT issued CIRCULAR NO 04/2022
Matters pertaining to the TDS made in case of Non-Resident
4.15.1 Under section 192 of the Act. any person responsible for paying any Income chargeable under the head Salaries, sha ll at the time of paymen t. ded uct income tax on the amount payab le. This section doe s not distingu ish betwe en the sa lary paid to a resident or a non resident. Hence all payments taxa ble under the head Salaries are liable for deduction of TDS irrespective of the residential status of the recipient.
4.15.2 In respect of non-residents, the sa lary paid for services rendered in India shall be regarded as income earned in India. It has been specifically provided in the ex planation to section 9(1)(ii) ofthe Ac t that any sa lary payable for rest period or leave pe riod which is both preceded or succeeded by service in India and forms part o f the service contract of employ ment will a lso be regarded as income earned in India
4.15.3 Where Non-Residents are deputed to work in India and taxe s arc borne by the employer, if any refund becomes due to the employee after he/she has already left India and has no bank account in India by the time the assessment orders are passed, the refund can be issued to the employer as the tax has been borne by it [Circular No. 707 dated 11.07.1995].