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Posted Thu, 30 May 2024 16:09:24 GMT by Jaikrat Singh
Dear Sir/Madam, I am writing to bring to your attention an issue regarding the taxation of my income as an expatriate employee. My name is Jaikrat, and I relocated to the UK in February 2022. Since my move, I have been employed by a single employer, with whom I was also employed in India. Under the ICT VISA, I transitioned to the UK. I wish to address the company policy that dictates the deduction of an amount equivalent to my basic income in India from my UK salary. For instance, if my basic income in India is 50,000 Rs per month, a deduction of 500 GBP is made from my UK salary (based on the exchange rate of 1 GBP = 100 Rs) and credited to my India bank account. However, before this deduction in the UK, income tax is withheld. Subsequently, when the same funds are remitted to my account in India, my employer also deducts income tax there. I possess written confirmation from my employer indicating that the same income is being taxed twice – once in the UK and then again in India. During the previous year's filing of my Income Tax Return in India, my chartered accountant advised me that the funds should be claimed in the source country. I kindly request your assistance in understanding the appropriate steps to take to claim the deducted funds. This marks my third financial year in the UK, and I have encountered challenges in finding the necessary support to address this matter. I appreciate your attention to this issue and look forward to your guidance on how to proceed. Sincerely, Jaikrat
Posted Tue, 04 Jun 2024 08:31:08 GMT by HMRC Admin 21 Response
Hi Jaikrat Singh,
Please have a look at article 16 (dependent personal services) of the UK / India tax treaty at UK/ INDIA DOUBLE TAXATION CONVENTION SIGNED 25 JANUARY 1993.  
As a UK tax resident with foreign employment income from India, you are only taxable in the UK on this employment income.  You will need to claim a refund of tax paid in India from the Indian tax authorities.
 You should apply for a certificate of residence at How to apply for a certificate of residence to claim tax relief abroad, which you would submit to the Indian tax authority in support of your repayment claim. They should be able to advise your employer not to deduct tax.
Thank you.

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