Tax liability based on residential status

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Y. Satya (Querist)

08 June 2016 Suppose a business managed and controlled outside India i.e., in Bangladesh has generated profits worth Rs. 60,000 in the current previous year. Out of these profits, Rs. 20,000 were remitted to India. What will be the tax liability of Mr. X if he is (i) Resident & Not Ordinarily Resident or (2) Non Resident in the current previous year when he receives the amount i.e., Rs. 20,000 in India.

Amol S Joglekar

Amol S Joglekar (Expert)

09 June 2016 just to ensure clarity......what is the location of the business and what is the location of Mr X.?

Y. Satya

Y. Satya (Querist)

09 June 2016 Thanks for your response. Assume that the business is in Dhaka only and Mr. X is a Bangladeshi but make regular visits to India as a part of his business promotion.

Amol S Joglekar

Amol S Joglekar (Expert)

10 June 2016 Ok. Thank you.
Since the person is citizen of Bangla Desh and comes to India regularly as a part of his business promotiion.....
remittance to India is NOT taxable in either case...(Even if he become RESIDENT and ordinarily resident of India, the remittance of INR20,000 is NOT taxable)
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