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2022 (10) TMI 711 - AT - Income TaxIncome deemed to accrue or arise in India - salary income as accrued to the assessee for work performed in UK - Period of stay in India - Scope of India-UK Double Taxation Avoidance Agreement (DTAA) - assessee has stayed in India for 63 days during this year - HELD THAT:- We would hold that salary income as accrued to the assessee for work performed in UK would not be taxable in India. However, the salary received for work performed in India would be taxable in India. Accordingly, we direct Ld. AO to re-compute the income of the assessee. The above proposition is also supported by the fact that upon perusal of UK tax return, it could be seen that the assessee has offered earnings from employment for£24184 on net basis which has been tax grossed up for £6046. This is in view of the fact that OFSSL has paid provisional payment of £9062 to UK revenue authorities since the employer has undertaken to meet the UK income tax liability arising from employee’s earnings in UK. Accordingly, the assessee has claimed refund of £3016. On the basis of the above, it could be seen that separate tax payment has been made by OFSSL to UK revenue authorities to discharge the tax liability of the assessee in that country. The assessee has also placed on record Tax Residency Certificate - As per this certificate, the assessee has claimed relief for foreign earning not taxable in UK for £7952. The same shall be considered by Ld. AO while computing the quantum of income taxable in India as directed by us in preceding para-7. The appeal stands partly allowed.
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