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Dividend reinvestment - queries

Sunder (Manager) (95 Points)

28 December 2013

Hello,

I am foreign national and living here for last saven years. I have investments in US equity and Debt mutual funds and there are dividend reinvestments. Do I need to declare these dividend reinvestments as part Indian income tax filing?

Thank You

Sunder

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2 Replies

SAURABH NENE (Chartered Accountant) (226 Points)
Replied 28 December 2013

Since you are staying ou of India since last 7 years, you are a Non Resident for Income tax purpose in India. Hence your income which has accrued and arised outside India and which is received outside India, is not liable to Tax in India. Hence you do not need to declare such income in India.

Sunder (Manager) (95 Points)
Replied 28 December 2013

Hello,

Thanks for the reply. Let me clarify.

I am US Citizen living in India for last 7 years. I have Dividends and Dividend reinvestments to be declared from USA based mutual funds (Vanguard). The question is how do we handle this? Since this is foreign mutual fund, this requires special handling hence this query.

Thank You

Sunder