Reg : Income tax payment
This query is : Resolved
28 December 2010
Hi,
I am Gopi working as a software engineer in a reputed company in chennai.
I need some details about the tax payment for the Fiscal 2009-10.
On March 16,2009 I went to UK stayed there for 12 months and returned back to India at the end of february 2010. During this period I worked in the same company which I was working with in India.
During this period of 12 months I received salary in pounds after deduction of appropriate taxes. I have opened an NRI account and deposited all my savings in that account.
Now my questions are
1) Am I the resident of India for the Fiscal 2009-10 ( I read that if we stayed more than 180 days outside we are not a reisdent for that fiscal)
2) Do I need to pay the Tax in India again for the savings that I have made in UK ( My employer has applied TDS based on the UK tax rules and deducted the tax that I need to Pay to the UK govt and i have filed the tax returns in UK for the Fiscal 2009-2010 already )
3) How can I show the income that I got in the tax returns that I need to submit in India.
Please clarify these points
Thanks in advance
Gopi
I am Gopi working as a software engineer in a reputed company in chennai.
I need some details about the tax payment for the Fiscal 2009-10.
On March 16,2009 I went to UK stayed there for 12 months and returned back to India at the end of february 2010. During this period I worked in the same company which I was working with in India.
During this period of 12 months I received salary in pounds after deduction of appropriate taxes. I have opened an NRI account and deposited all my savings in that account.
Now my questions are
1) Am I the resident of India for the Fiscal 2009-10 ( I read that if we stayed more than 180 days outside we are not a reisdent for that fiscal)
2) Do I need to pay the Tax in India again for the savings that I have made in UK ( My employer has applied TDS based on the UK tax rules and deducted the tax that I need to Pay to the UK govt and i have filed the tax returns in UK for the Fiscal 2009-2010 already )
3) How can I show the income that I got in the tax returns that I need to submit in India.
Please clarify these points
Thanks in advance
Gopi
28 December 2010
During the period from 1.4.2009 to end of Feb 2010 you were remained out of India for the purpose of employment. For the Income of FY 2009-10 Assessemnt Year is 2010-11.
Your status is NRI.
You need not to pay tax on UK income or savings made there as your status is NRI (and you have already paid tax in that country. )
You are supposed to pay tax for your Indian Income only excluding NRI A/c s Interest.
Your status is NRI.
You need not to pay tax on UK income or savings made there as your status is NRI (and you have already paid tax in that country. )
You are supposed to pay tax for your Indian Income only excluding NRI A/c s Interest.
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29 December 2010
Thanks Paras for ur quick help.
Based on your response I need some more clarifications :
a) Initially I transferred all the savings into NRI account. But after returning back to India I have used that for LIC premium and Fixed Deposit in a bank. Do I need to pay any tax after transferring the money from NRI to my normal accnt.
b) How I need to show the foreign income in the IT returns that I have to submit in India. Do I need to include any specific forms or proofs.
Based on your response I need some more clarifications :
a) Initially I transferred all the savings into NRI account. But after returning back to India I have used that for LIC premium and Fixed Deposit in a bank. Do I need to pay any tax after transferring the money from NRI to my normal accnt.
b) How I need to show the foreign income in the IT returns that I have to submit in India. Do I need to include any specific forms or proofs.
29 December 2010
The amount deposited in NRE A/c is once taxed in UK and there is Treaty between UK and India tfor Avoidance of double taxation.
In my opinion there is no tax liability arises on remittance as transferring the balance or utilisation of NRE A/c money is a transaction of this nature only.
Applicable form for filing return is ITR 2 in which you have to give details of Indian Income only.
As the income earned and received outside India by an NRI is not taxable in India,
you need not to show the foreign income.
However , while filling this form take care to show your Residential Status as Non-Resident.
In my opinion there is no tax liability arises on remittance as transferring the balance or utilisation of NRE A/c money is a transaction of this nature only.
Applicable form for filing return is ITR 2 in which you have to give details of Indian Income only.
As the income earned and received outside India by an NRI is not taxable in India,
you need not to show the foreign income.
However , while filling this form take care to show your Residential Status as Non-Resident.
29 December 2010
If I dont show the foreign income then how can I show the source for the asset.
For example In the last Assessment, I have shown 25 lakhs as my current assets. Now while filing the returns my current assets would be 30 lakhs ( including the foreign income I earned) . so with out giving those details how can I justify the increase in the assets value.
For example In the last Assessment, I have shown 25 lakhs as my current assets. Now while filing the returns my current assets would be 30 lakhs ( including the foreign income I earned) . so with out giving those details how can I justify the increase in the assets value.
29 December 2010
If you are showing any business income then only you have to show your details of assets and liabilities.
As you have mentioned that you are getting salary then you would not require to furnish such details in the return.
As you have mentioned that you are getting salary then you would not require to furnish such details in the return.
30 December 2010
Sorry I forgot to mention. I have other business income as well and I showed my assets and liabilities in all my previous assessments. That is the main thing I am worrying otherwise I would show for this year alone.
30 December 2010
Form ITR-4 is not perfectly designed and as such have many lacuna.
You have to show such income under the Schedule EI -Details of Exempted Income in Item No 6. I think, this will be a sufficient compliance in the absence of any suitable column in the form.
You have to show such income under the Schedule EI -Details of Exempted Income in Item No 6. I think, this will be a sufficient compliance in the absence of any suitable column in the form.
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