Hello,

I am in Germany since 10 months now and for the last Indian financial year (2016-17), I was assessed to be a Resident- Ordinary resident (ROR) of India (since I stayed in India more than 180 days as per the norms), according to which all my global income need to be taxed in India. Hence my German gross remuneration for the period (Oct 2016, when moved in Germany to Mar 2017) was included along with Indian income before that (Mar 2016 to Sep 2016) and total tax liability was computed on this amount. However, the taxes which I paid here in Germany was given "Foreign tax credit" in India as part of avoidance of double taxation treaty and hence the remaining tax liability is computed which I need to pay now.

When the taxes paid here (in Germany) is exempted for tax calculations (in India), only the "employment tax" was considered for this benefit.  My question is that I pay considerable amount of my salary for "Health insurance" and Pension insurance" here, which is not taken into consideration for exemption. Do anyone aware of the possibility of excluding these components as part of India-German double taxation avoidance treaty"? Have anyone come across such situation in the past?

Thanks and Regards
Senthilkumar