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Tax treatment for India (stay over 182 days)/Hong Kong salary income in a single year

Personal Finance & Money Asked by Vaibhav on April 16, 2021

What is the tax treatment for salary earned in India (stayed over 182 days) and Hong Kong? Hong Kong tax rules provide for some standard deduction before computing net chargeable income.

What is the amount that will be charged to tax in India? Whether total income earned in Hong Kong will be included or only the ‘net chargeable income’ (which is calculated after adjusting for standard deduction based on number of family members)?

One Answer

Please consult a professional CA.

India and Hong Kong have recently in March signed a DTAA [Dual Tax Avoidance Agreement]. As per DTAA; in your case, the Salary in India will be taxable only in India. The Salary you get in Hong Kong, provided you are in Hong Kong will be taxed only in Hong Kong. Any other income [interest, dividends, capital gains, etc] earned in India during your stay in Hong Kong will be taxed in India.

Answered by Dheer on April 16, 2021

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