Foreign income earned and converted in different fy

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This query is : Resolved

Shikha Mahawar (Querist)

14 July 2017 I have a query related to taxation on foreign income if earned and converted in two different FY.

If an individual has been out of India for employment purpose for 187 days in a FY, the status of individual turns to NRI. The salary income earned by that individual for that FY becomes exempt from tax.

But what if the individual carries some amount of salary received in foreign currency itself and do not convert to INR and converts the same in INR in next FY when the individual status will be Resident.

Will that foreign currency converted to INR in next FY becomes taxable in that FY although the income earned outside India when the individual was NRI.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

14 July 2017 Foreign currency converted to INR in next FY not taxable.

Shikha Mahawar

Shikha Mahawar (Querist)

14 July 2017 Thanks for the confirmation. One more query.
Do I need to declare foreign income while filing return for the FY when the income was earned and resident status is NRI.
If yes, how should I evaluate the amount in INR when the salary income is still in foreign currency and not yet converted.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

16 July 2017 No need to declare foreign income while filing return for the FY when the income was earned and resident status is NRI.

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