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

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This query is : Resolved

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This discussion clarifies whether a portion of March salary, received in April 2024, should be included in the FY 2023-24 income for Indian tax purposes. The consensus is that since the salary was received and taxed in April 2024 (a new tax year in India), it generally shouldn't be declared for FY 2023-24. If you become an NRI next year, foreign income is not taxable in India, simplifying the declaration process. However, it's advisable to maintain clear records, such as bank statements and employer certificates, to support your declaration for the correct financial year.

AJAYI

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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