My friend received Salary in India of Rs. 10,50,0000 and in Bangladesh of Rs.10,65,000 in the F.Y 2013-2014. He stayed in India 142 days in the said financial year. What will be the taxation? Is the income from Bangladesh exempted ?
Subrata Bose (Indipendent) (45 Points)
06 October 2014My friend received Salary in India of Rs. 10,50,0000 and in Bangladesh of Rs.10,65,000 in the F.Y 2013-2014. He stayed in India 142 days in the said financial year. What will be the taxation? Is the income from Bangladesh exempted ?
Jaikishan
(CA)
(168 Points)
Replied 07 October 2014
If your friend has lived in India for 182 or more days in a financial year, then only he will be considered a resident of India under the Income Tax Act. In that case income, earned abroad, will be taxable in India.
Since he has stayed less than 182 days his income outside India is not taxed.
Subrata Bose
(Indipendent)
(45 Points)
Replied 07 October 2014
Should he file IT return (ITR2) only for income in India?
Thanks in advance.
Jaikishan
(CA)
(168 Points)
Replied 08 October 2014
He has to file ITR2 as salaried individuals earning exempted income of more than Rs 5000 cannot use ITR1 and are required to file ITR 2. Also ITR form 2 cannot be used by individuals earning from business and profession
Hence in your case ITR 2 will be filed as exempt income.
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