Foreign inward remittance & taxation

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 November 2012 I am likely to be appointed a consulting advisor by a foreign resident (not an NRI or PIO) for his ongoing and proposed business activities. Accordingly, I am expecting to be paid a monthly compensation/honorarium by inward remittance through banking channel. In this regard, I wish to know:

1. How many times such remittances can be sent to India as per RBI rules?

2. What could be the maximum amount of individual remittances?

3. Is their a restriction on the total amount of remittance in a year?

4. Are such remittances automatic or approval of RBI is required?

5. If RBI approval is required, what kinds of documents are to be submitted?

6. Taxation of such remittances?

7. Any other relevant information which I need to know?

Amol S Joglekar

Amol S Joglekar (Expert)

03 November 2012 01. No restriction on number so far as the money is flowing into INDIA through banking channel.
02. No limit of amount so long as you are able to prove the source of transaction (which you are if it is done through banking channel).
03. No restriction on remittances per year.
04. "Banking channel" is the key. Since they are authorised dealers... RBI permission is GENERALLY granted.
If you are resident in India, your income is taxable in India. (In this case remmittance is your income)

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CA. Anuj Gupta

CA. Anuj Gupta (Expert)

04 November 2012 Here the duty of foreign Company paying you salary is to deduct and deposit TDS on the payments made to you.

Anuj
femaquery@gmail.com

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)

17 November 2012 Anmol has given you the proper answer but since you are working from India you are liable for tax in India and the employer has to deduct tax as per terms of appointment and you have to file the return in India other questions have properly been replied by the experts. No RBI permission is required when remittance is inward. If it is outward then only RBI intimation is required alongwith the CA Certificate.

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