My daughter worked in India from April 1, 2010, till October 31, 2010. Thereafter, she left the job on February 2, 2011, and went to London for the first time and joined a company there on March 15, 2011. She got her 15 days’ salary after paying the taxes under the UK law. Now, her income tax return for the assessment year 2011-12 has to be filed in India. Shall she show her foreign income in the return?

Sumeet Jain, Calcutta

If a person leaves India for the purpose of employment, business or for any other purpose that indicates his/her intention to stay outside India for an uncertain period, he/she become a non-resident from the day he/she leaves the country under the Foreign Exchange Management Act (FEMA) of the Reserve Bank. However, since she had stayed for more than 182 days in India in 2010-11 financial year, she will be considered as resident Indian under the Income Tax Act. She will have to submit the income tax return for her income earned in India only, the tax-paid salary income in the UK will be tax exempt. So, she can show her foreign income and claim a deduction of the same in the income tax return.

PF refund

I retired in February 2008. Of the Rs 27,687.84 arrear salary payable from November 2007 till February 2008, the employer had deducted an amount of Rs 4,316 as employee’s contribution to provident fund. On December 9, 2010, I got a refund of Rs 8,632 as the PF contribution of employee and the employer. Can I claim deduction on my PF contribution of Rs 4,316 under Section 80CC and whether the employer’s contribution of Rs 4,316 would be excluded from my annual income?

Sadhan Sengupta, Calcutta

If you have got the refund of Rs 8,632 from the Employees’ Provident Fund Organisation, there will be no tax liability on the amount and you can claim deduction of Rs 4,316 as well. But if you have got the refund from your employer only, you shall have to pay the tax. Because, the deducted money, that is your contribution plus your employer’s contribution has not been deposited in the provident fund.

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