Disclosure of foreign income in itr 2

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Querist : Anonymous

Querist : Anonymous (Querist)

22 July 2013 I have US salary income of around Rs. 150000 for FY 2012-2013 and my employer has deducted federal tax, medicare tax, social security tax and state tax accordingly. Also, I do have Salary Income in India for which my employer has deducted tax and issued Form 16. As per recent amendment, one has to disclose foreign income and assets and tax paid in the sheets FSI and TR_FA. But when I fill in US Salary Income in FSI sheet of ITR 2, it states that the declared income should be included in PART B-TI sheet.

My Questions are

i) Where should I declare this US salary income in PART B-TI sheet? Is it
correct to add my US Salary Income to my Indian Salary mentioned in Form 16
by my employer and show it as Salary under Schedule-S? If so, salary mentioned in Sch. S in this sheet would be different than that reported in my Form 16 and would that be a problem?
ii) Do I need to have any document proof if I disclose US Salary income?
iii) Also, when I show US tax amount in TR_FA sheet, can I include Medicare tax and Social Security tax along with Federal and State Tax?
iv) In case I don't disclose this US salary income as the tax deducted in US
is more than what I would pay if I had to show that income in India, would that cause any problems later on?

Any advise on this would be really helpful.

Regards

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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23 July 2013 Anywhere you have not mentioned that whether you are a non resident or resident for FY12-13 nor you have mentioned the period of your stay in india for FY 12-13.

Querist : Anonymous

Querist : Anonymous (Querist)

23 July 2013 Apologies. My status is Resident. Have resided in India from 18th April 2012 to March 2013. If any other details required, please let me know.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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24 July 2013 Ans1.
yes you need to disclose foriegn income from salary since you are resident its taxble in india and you need to disclose it with indian salary only in itr, though the final figure in form 16 will differ frm itr as you will have both aggregate salary.

Ans2.
With itr you dont need to attach any proof. only when i ITO demands you should make it available, till that time preserve all documents of foreign salary.

Ans 3. Yes.

Ans 4.
If you dont disclose and if dept issues you notice then u may have to pay hefty penalty ranging from 100%- 300 % for income sought to bbe evaded under income tax act.it is advisable to disclose to save from dire consequences and detailed scrutiny assessment.

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