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The Economic Times
The Economic Times
Business
Neelanjit Das

Employee wrongly declared Rs 14 lakh Australian salary in Indian ITR: ITAT grants tax relief but denies Rs 3.4 lakh foreign tax credit

When Mr Gupta from IP Extension, Delhi got the opportunity to work in Australia, he jumped at the opportunity and earned a salary of Rs 14.16 lakh for his work. However, he mistakenly reported this income in his income tax return (ITR) in India. The ITR was for AY 2020-21 and was filed on September 29, 2020.

Since he was abroad for the entire year and got the salary from the Australian company for his services rendered over there, technically Indian tax authorities could not demand any tax from him. But since Gupta himself declared the Australian salary as taxable in India when filing his income tax return for AY 2020-21, even though, under Article 15 of the India-Australia DTAA, it should not have been taxed in India, it caused trouble for him.

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