INCOME FROM FOREIGN COUNTRY

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This discussion guides an Indian tax professional on filing an Income Tax Return (ITR) for a client residing and earning income in Australia, who is an Indian non-resident. The advice clarifies that for non-residents, foreign income is generally exempt from Indian tax. If the client has Indian business income, ITR-3 is recommended over ITR-2. Crucially, disclosure of foreign assets and bank accounts is not mandatory for non-residents, though it can be done voluntarily under specific schedules if desired.

Teerth

Teerth (Querist)

07 July 2020 Hello All,
I have a client who is located in foreign country. Lets say Country Australia. His origin is in India but shifted to other country few years back for his studies and now professionally working in the same country for his earnings.
He wants to file Indian Income Tax Return. He is earning over there. He is filing his income statement over there.
Since this will be my first Income Tax Return for an assessee having foreign Income.
Kindly guide me how to file such income tax return and what all things should I take into consideration while filing this income tax return.
Thank you.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

07 July 2020 You have to file ITR 2 in such a case if he is having any Indian income other than business. Foreign income is exempt in case he is non resident.

Teerth

Teerth (Querist)

07 July 2020 Okay sir. If he is partner in his one of the business in India. Will require to file his ITR-3?
And as the Foreign Income is exempt in case of Non-Resident, Do I require to show his Foreign Assets and Foreign Bank Account as Foreign Assets??

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

08 July 2020 1 yes file ITR 3.
2 Disclosure of foreign assets and bank account not required in respect of non resident.

Teerth

Teerth (Querist)

27 July 2020 Sir, With due respect Please let me know can i File the Income Tax Return by showing Foreign Income which is not Taxable, showing Foreign Assets and Bank Account Voluntarily. If Yes where shall i Show it??
It is to note that The Foreign Income is not Taxable here. He has already paid tax on Foreign Income in its respective country where he earned. Please guide??

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

27 July 2020 In case of non resident no need to show foreign income and foreign assets and liabilities.

Teerth

Teerth (Querist)

28 July 2020 Right that I agree sir. What if I wish to show voluntarily their Foreign Income and Foreign Assets in our ITR??

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

28 July 2020 Show foreign income under exempt income schedule.
Assets and liabilities can be shown in assets and liabilities schedule of ITR.

Teerth

Teerth (Querist)

28 July 2020 Okay right Sir. So what I wish to ask is that there is no issue if I voluntarily show Foreign Income Foreign Assets and Liabilities right??

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

28 July 2020 Yes you are right...........

Teerth

Teerth (Querist)

28 July 2020 Okay Thank you so much sir for your kind Help.. Thanks a lot. Your Help in need helped me indeed..

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

28 July 2020 Welcome.............

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