Request you all to help me with the below mentioned query:
There is an individual whose current residential status is Resident and Ordinary Resident, however he was in Dubai some years back and was there for approx 8 years. He worked there & Earned Money & paid the applicable taxes (in Dubai). At the end of 8 years, there was some saving in Dubai Bank A/c.
The individual then left Dubai and returned to India in 2006, since then he is working / doing business in India and Paying the taxes regularly. However some money is being deposited in Dubai A/c Periodically ( say 2/3 times in year ) as some commission etc.
The concerned individual now in 2014, wants to transfer the funds in the bank account held in Dubai to his bank account in India and close the Dubai bank account.
Will this transfer be Exempt or taxable, if taxable, will it be taxed according to the slab rates or any special rate of tax ?
16 October 2014
For a resident and ordinary resident in India the income earned outside india is taxable in India since the aforesaid income is not being taxed so there is income escapement in such case there should be filing of revised return but the revised return can also be filed only for the last 2 FY only. So, atleast not to have problem from Income Tax dept. you must show all the income in the current year and not claim the tax credit as the tax being paid in Dubai can be claim only for the current year so which will again put you in problem. My opinion, show all the income in the year of receipt and claim no tax credit on the income since you have already done the mistake by not paying tax.
The income earned from the period 2006-2014 have been taxed in India.
My major query is what about the funds that were lying in the Dubai bank account at the end of 2006, when the assessee had left Dubai and came back to India, he wants to transfer those funds now in 2014, can he do that, if yes what will be the tax implications on that?
16 October 2014
Please see your query above as you have not mentioned that the taxes has been paid in India on the income earned in Dubai. Bringing the funds in India is not a problem if the taxes are paid on the same. When bringing the money into India you will have to give an explanations to AD.
16 October 2014
Please understand if the tax has already been paid then why it will be taxed again. Income tax act does not prescribes levying of Double taxation.please read DTAA chapter on this.
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