BIG DOUBTS ON COUNTRY SPECIFIC EARNING: PLZ HELP ME

[Abhaya]

Hi All,

I am planning for tier1 general highly skill program from India.
I have doubts on country specific earning.
Describe my case briefly below.

I was in UK in workpermit from july 2007 to march 2008.In that period I am getting my salary from India. My Indian salary contain

Earning Amount in RS

BASIC xxxx
HRA xxxx
Special Allowance xxx
convenyence xxx
extragatia xxxx
Hot skill xxxx
TAXABLE OVER SEAS ALLOWANCE xxxx
---------------------------------------------------------------------------------------
Gross Earning -xxxxx
------------------------------------------------------------------------------------------
Deduction Amount in RS
Provident Fund xxxxx
Professional Tax xxxxx
Incometax xxxxx
OVER SEAS ALLW REIB xxxx
----------------------------------------------------------------------------------
NET DEDUCTION xxxxxx
==============================================
Net Pay -xxxx

Apart from this I was not getting anything from UK. even my form 16 contains taxable over seas allowance entries. and I have paid tax for it in India. My bank statement also contains the same entry.

Now my doubts is
1. Shall I show this earning from Indian earning or UK?
2. If it is from UK earning then, How can I show the proof. Since I don't have other proof.
3. One consultant is saying since you are 8 months(maximum time in a year) in UK so they will calculate according to UK earning.



Please any one already faced this type of situation help me what can be the best solution for it.

Thanks in Advance

Regards
Abhaya

[punitsahni]

Para 43 in Annexure C of the HSMP Guide states "If you are living and working in a country but having your income paid into a bank account in another country your income will be considered against the country code where you are living and working".
Regards

[rajesh9pl]

Thats right! I endorse what punitsahni has quoted.

[hussainkothari]

Hi Abhaya,

Calculating salary in a country that you have stayed most was according to the old HSMP rules. Now you would be applying in the Tier1 catagory. First is that your consultant does not know about this and this is very dangerous for you!

To answer your question - What punitsahni has said is correct. If you were living in India you could multiply your salary with a factor of 5.3 . Since you were living in UK you cannot do this now. You have to convert INR to GBP as per the conversion rate and thats it.

-H

3. One consultant is saying since you are 8 months(maximum time in a year) in UK so they will calculate according to UK earning.