Accounting period of Foreign Income in ITR

Save Share

This query is : Resolved

Quick Summary

This discussion addresses the correct accounting period for reporting foreign investment income in an Income Tax Return (ITR) for Assessment Year 2022-23. Specifically, it clarifies how to handle income from the USA (which uses a calendar year) and Hong Kong (which aligns with the Indian financial year). The consensus is to include foreign income from 1st April 2021 to 31st March 2022, regardless of the foreign country's financial year, though Schedule FA's mention of 31st December 2021 for US income requires careful consideration.

Rakesh Mital

Rakesh Mital (Querist)
Follow

14 April 2022 Hello Sirs,

My client has income from investments in the USA and Hong Kong. While USA works on a calendar year (1st Jan to 31st Dec), Hong Kong works on a financial year same as ours. Please confirm that for AY 2022-23 accounting period for USA will run from 1st Jan 2021 to 31st Dec 2021, i.e. income for the period 1st Jan 2022 to 31st March 2022 will not be included in the ITR. Whereas for Hong Kong income for the period 1st April 2021 to 31st March 2022 will be included. Please confirm. Thank you