First, I want to ask if having money in Foreign Banks like USA or Canada is legal if Foreign Assets are declared in India? And how do I file Tax and what kind of Tax on these asses?
Do I need to bring the money to India and then transfer money to foreign Bank account or can I deposit money directly into Foreign Bank Account after taking payment from clients... Remeber I am located in India... Where can I read in detail the Laws applicable to this matter?
Declaration of Foreign Asset including Foreign Bank Accounts is applicable to "Resident Individual". If you are a "Resident Individual" then this might be an interesting read...
The finance minister has proposed a key change in the Budget which mandates reporting of assets held outside India by a 'Resident' individual.
Such individuals should file a tax return to report such foreign assets, including any foreign bank account or any financial interest in an entity, or in cases where the 'Resident' is a signing authority for an account outside India
Subsequently, new tax return forms have been notified by the government for Financial Year 2011-12. A new section and schedule FA has been inserted in the Forms ITR-2, ITR-3 and ITR-4 requiring the disclosures with respect to foreign bank accounts, signing authority in any account located outside India, financial interest in any entity, immovable property or any other asset held outside India.
How Do I pay Tax on Income I earned and received directly in Bank Account outside India? I am living in India makes me Resident of India?
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