28 July 2018
I am Indian resident. Paying tax in India. My income as under; >a) I have Indian income of 12,00,000 (interest income, rent of 2 lac, and other income) >b) further have i have following foreign income; i) foreign commission income of 4.50 lac (can i deduct foreign travel+visa expense of 45000), ii) foreign dividend income 2,50,000 (from shares of foreign venture fund investment*) and iii) Loss = 8,50,000 (from foreign venture fund investment) So total foreign income= 4,50,000 + 250,000 = 7,00,000 and loss= 8,00,000. . so net is -1,00,000 (loss) Net effective foreign income is loss of 1,00,000
My queries as under; 1) How do i compute my income tax 2) Is my foreign commission (4.5 lac ) treated as business income ? 3) Which form do i need to fill up ITR2 or ITR4? 4) Can I club all my foreign income including commission under one head foreign income? 5) can i deduct my foreign loss from Indian income?
29 July 2018
1 Loss on foreign income can be claimed in Indian income. Subject to set-off rules. 2 yes treat it as business income. 3 File ITR 3 . 4 Head wise income to be disclosed. 5 yes foreign loss can be deducted in Indian income.
CAclubindia
