Taxation problems for my french wife

Hi,

I am an indian and my wife a french citizen who has time for acquiring a PIO card until the next 12 months is working as a consultant in an american online gaming company. Her company has deducted only 10% as income tax, while in the indian income tax law her income tax should have been atleast 30%. The company says that being a french citizen she is entitled to pay only 10%. Does any one of you know any thing regarding this?

Arjun Shiroor

Hi Arjun Shiroor!

I hope that you will soon be given replies to your question.

Harmonie. :)

Hello Arjun,

So, what is the problem or your question? Aren't you happy that your wife is paying only 10% tax! If you want her to pay an additional 30%, why don't you donate the remaining % to charitable institution.

Regards

Hi Yud,

Its not that i am not happy we are saving lots of money by paying less tax. You must be aware that the FRRO is very strict now a days and i do not want us to get into problems later for tax evasion etc. My wife Sonia a french citizen is a consultant in an organisation and tax is deducted at only 10% under Non-Resident (French Citizen) under U/S 195 of income tax act. I am trying to browse the net to know more income tax laws. If you know more let me know.
Thanks & Regards
Arjun

Hi, Tax being deducted has nothing to do with Final Tax Liability.

If she is being subject to TDS @ 10% but her final tax slab rate comes at 30% , she needs to pay the balance 20%.

For more info contact : [email protected]

Hi...
Her tds has been cur as if they are paying an outside professional... By outside i dont mean foreigner.. I mean outside the organization.. That figure is fine of 10% as a professional. But when she is filing her returns that time she has to show her total annual income, and then recalculate her amount. The indian govt has dicferent % income tax for different slab of income.. Eg a person earning 4 lak per annum has to pay less tax % than a person on 8lak income annually.
also a lady has some benefits also. So pl check any income tax sight for better info...

Also if she has paid tax (copmpany has deducted as per rule) but is not qpplicable as per her annual total, she can even claim the money back from govt, and not the company
Hope yhis helps
Reg
Amitabh

Hi Arjun,

well, my answer is not actually related to ur question but jst wanted to know why your wife is trying to obtain a PIO.
Why not just go for an OCI (Overseas Citizenship of India).
I have one myself and the advantage is that it is a lifelong visa and it will never expire.
You dont have to even register every year.
It has the same benefits as the PIO but is lifetime validity.
Have a look into it
you cab have a look here

http://mha.nic.in/foreigDiv/OCI.html

hope this info helps

arjunshiroor wrote:

Hi,

I am an indian and my wife a french citizen who has time for acquiring a PIO card until the next 12 months is working as a consultant in an american online gaming company. Her company has deducted only 10% as income tax, while in the indian income tax law her income tax should have been atleast 30%. The company says that being a french citizen she is entitled to pay only 10%. Does any one of you know any thing regarding this?

Arjun Shiroor