Personal Finance
At the time of filing income-tax return in India, you can claim exemption from the payment of tax in India and pay the required tax in Dubai only
Updated : Aug 21, 2018, 06:50 AM IST
As per Section 90 of the Income Tax Act, a taxpayer resident in one of the two countries can claim the benefit of the tax treaty signed amongst them, if its provisions are more beneficial in comparison to the domestic law. Accordingly, if you qualify as a resident in India, you can claim the beneficial provisions of the tax treaty and claim that the capital gain tax shall be paid in Dubai only. At the time of filing income-tax return in India, you can claim exemption from the payment of tax in India and pay the required tax in Dubai only.
Obligation to file the income-tax return arises when income exceeds the threshold limit specified in this behalf (that is, Rs 2,50,000 if the age is up to 60 years and Rs 3,00,00 if age is more than 60 years). In your case, you shall not be required to file income-tax return as your income is below the threshold limit.
To claim the salary benefits, there must exist the employer-employee relation and most importantly, salary income should be earned. Since, the amount earned by you is a fixed amount which is not salary, you will not be eligible to claim any salary related tax benefit.
Suraj Nangia, partner, Nangia Advisors LLP
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