23 March 2026
Promotion of hindu deity by an NRI. He got income and credited to NRO a/c in india. Tax deducted in united kingdom for that income. Also he collects donations from various persons through his NRO account and utilise the amount for the promotion of hindu temples and donate such amount in his name. He wanted to offer income u/s 44AD or 44ADA. Youtube colletion received in sizeable amount. I want to know whether donations taxable under which head ? Also the you tube taxability and tax collected at uk is eligible any credit in tax liability?
24 March 2026
If the NRI collects donations in their personal NRO account and spends them in their own name, these receipts are generally treated as taxable income under the head "Income from Other Sources" Under Section 56(2)(x), any sum of money received without consideration exceeding ₹50,000 in a financial year is taxable as income in the hands of the receiver. Since the individual is not a registered trust, they cannot claim the standard 85% exemption available to charitable organizations.
24 March 2026
YouTube earnings are classified as "Income from Business or Profession". As an NRI, you are generally not eligible to opt for the PRESUMPTIVE ASSESSMENT schemes u/s. 44ADA/44AD..
24 March 2026
Under the India-UK Double Taxation Avoidance Agreement (DTAA), you can claim a credit in your Indian tax return for the tax paid in the UK on that specific income. Requirement: You must file Form 67 on the Indian Income Tax e-filing portal before filing your ITR to claim this credit. Limit: The credit is restricted to the lower of the tax payable in India or the tax actually paid in the UK on that income.