Income tax on roeign income
This query is : Resolved
26 April 2012
I was a person of India Origin and Indian Citizen till 2010. after that I went abroad acquired a foreign citizenship now that I have returned to India I need to get a OCI. my business is settled outside India and I am a trader and investor that earn through internatonal financial market(share market) as I am not a citizen of India but Plan to live in India will my income be taxed? I do not use the Indian bank my money is stored in the foreign bank . but I want to bring in India to buy property and regular needs please provide with in detail
27 April 2012
In INDIA, the taxability of income depends upon "RESIDENTIAL STATUS" and not CITIZENSHIP. Your residential status shall decide the taxability. While you will be regarded as "RESIDENT BUT NOT ORDINARILY RESIDENT" (subject to sec 6 ), the income earned outside India from a business controlled outside India shall not be taxable in India ecven if you bring that income into India in due course. (I request you to contact a good consultant who knows the intricacies of sec 6 as well as 9)
27 April 2012
Right now you are a citizen of a foreign country and governed by the income tax rules of that country. When you start living in India and start earning in India either through business or employment, certain foreign countries like USA expects you to report global income. India depending upon your residential status would expect you to pay taxes. If you are interested to know about the actual liabilities, certain nations have tax treaties with India and that would also affect your tax liability. Kindly come with
actual earnings to know the real position. Kindly consult a CPA like myself for USA taxation or any good CA from India when you have actual tax liabilities. Please do not attempt to solve the problems directly.
actual earnings to know the real position. Kindly consult a CPA like myself for USA taxation or any good CA from India when you have actual tax liabilities. Please do not attempt to solve the problems directly.
04 May 2012
Both the experts have given you the correct reply and I agree with them. So as soon as you start earning in India you will be required to pay tax in India but in US you have to disclose and submit the income earned by you in India and assets held by you also.
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