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Double taxation prevention?

I am working in UK since 27th june 2007 and will be returning india in 2nd Feb 2008.

Can you please explain double taxation prevention specific to my case and I would also like to know that how can i prevent the double taxation and what all documents i would require for it.

If you are working in the UK for 7 months, you are treated as tax resident here as you will have spent over 183 days here. Therefore, any work carried out in the UK is liable to UK tax. However, if you go back to India in Feb 08, you may also be liable there.

When you leave the UK, you should fill in form P85 and attach parts 2&3 of your P45 from your employer. Your time spent in the UK is in 1 tax year, Apr07-Apr08. So, if you have earned less than the personal allowance of 拢5225 from June 07-Feb08, you will be due a repayment of all of the tax taken from you. There will be no issue of double taxation then, as you will have paid nothing to the UK. If however, you have earned more than 拢5225, you may still have overpaid, but you will not get the whole amount of tax back. If this is the case, when you declare your income to the Indian authorites, you should also declare the tax which was due to the UK authorites. They should then give you a credit for the tax paid in the UK.

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