Assessee, a tax resident of both India and US, employed with Indian-company was on an international assignment to US. He stayed and exercised his employment in US and received salary income. He\u00a0\u00a0 claimed that as he had stayed in India only for 16 days, salary income earned by him was not taxable in India but was taxable in USA as per provisions of article 16 of Indo-US DTAA.\u00a0 Assessing Officer placing reliance on provisions of section 90(4) rejected assessee’s claim of exemption from taxation of salary in India and made an addition of same. CIT(A) held that the remuneration is\u00a0 paid by the employer who is\u00a0 always\u00a0 a resident of India and therefore, the assessee\u2019s salary is\u00a0 taxable in India. On appeal the Tribunal held that the\u00a0 assessee had not made any submissions relating to status of assessee of cumulative stay of less than 365 days in four years preceding year in question, therefore, assessee by virtue of provisions of section 6(1) had failed to establish his status of non-resident. During year, assessee did not have permanent home in US, whereas, he had a permanent home in India. The Assesseee is\u00a0 in permanent employment of Indian-company and bank account of assessee i also in India, wherein, salary is\u00a0 deposited. Address of wife of assessee mentioned in income tax return filed in USA for year 2019 is also in India.\u00a0 In view of provisions of section 6 read with article 4 of Indo-US DTAA, assessee is\u00a0 to be treated as a resident of India. Since assessee is a resident of India, however he had exercised employment and received remuneration in US, income of assessee is\u00a0 taxable in USA and not in India. Therefore, additions made by Assessing Officer is\u00a0 deleted. (AY. 2019-20 )<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 6(1) : Residence in India-Individual-Income from employment-Salary payments outside India-Exercised employment and received remuneration in US-Salary income is taxable in USA and not in India-India-USA [S. 9(1)(i),90(4) Art.4, 16] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-48640","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-cEw","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/48640","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=48640"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/48640\/revisions"}],"predecessor-version":[{"id":48641,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/48640\/revisions\/48641"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=48640"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=48640"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=48640"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}