Schedule FOREIGN ASSETS of ITR

Save Share

This query is : Open

PRARTHANA PATIL (Querist)
Follow

05 July 2021 I have a query regarding the calculation of gross taxable income in India and mentioning of foreign income in schedule FA for FY 2020-21.
FY India -1st April 2020 to 31st March 2021
Accounting period of US-1st January 2020 to 31st Dec 2020, so
1. Foreign income for a period from 1st April 2020 to 31st March 2021 is to be considered for computing gross taxable income and tax liability for FY 20-21 in India.
2. But, while mentioning the foreign income under schedule FOREIGN ASSETS, I have to mention my foreign income for a period from1st January 2020 to 31st Dec 2020 i.e. accounting period of US, even though I mentioned foreign income for a period of 1st Jan-31st March 2021 for calculating tax liability in India for FY 20-21.
3. And, in case of foreign income for a period from 1st Jan-31st March 2021, I have to mention it under schedule FA for FY 21- 22 in India.
Is this correct?

Deepa B

Deepa B (Expert)
Follow

06 July 2021 1.Yes. Income from 1.4.2020 to 31.3.2021 needs to be considered for computing Gross taxable income for AY 2021-22.
2. Yes. It's a disclosure schedule which will not have any impact on your tax liability.
Apparently there will be mismatch in income reported for taxability purpose and disclosure made in schedule because of different reporting period . But the Tax authorities' intent is to know and have track of foreign assets held by assessee. Hence said reporting would not have any adverse affect
3.Yes

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now