Should I include march foreign salary received in April in my income for FY 2023-24?

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AJAYI (Querist)
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27 November 2024 I am paid biweekly in foreign company in USA. Half of my March salary I received in March that I offered to tax. The second half I received in April, 2024. My CA told me that since the salary was received in April, and the tax was deducted in April 2024 in the foreign jurisdiction(Which is a different tax year in India), I won't be able to claim FTC on this amount and that's why I should not include it in FY 2023-24 income. Is my CA correct?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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27 November 2024 Yes, you have option to declare the balance salary amount in next year ITR.

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AJAYI

AJAYI (Querist)
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27 November 2024 Thank you so much sir. So I consider it income for next year? I shall be a NRI next year and as such my foreign income is not taxable in India so how do I show that?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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28 November 2024 For NRI no need to declare foreign income in ITR. Only income earned or accrued in India need to be declared.

AJAYI

AJAYI (Querist)
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28 November 2024 Thank you sir. So can there be issues if the remaining balance is not shown in ITR or that will be considered my income for next year and thus I don't need to show it?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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28 November 2024 As such it is disputable issue. You can stand on ground that the salary received till March 2024 has been declared. You can produce the details as per your bank statement, and if possible, through a certificate from your employer to authenticate your stand.
You are required to declare the income in next FY only if you are ROR as per IT act.

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