Foreign income of a Resident Indian

A resident of India is having investment in US. He has filed Federal Income tax return for the year 2010 in US for dividend income and capital gain from sale of securities claiming a refund of certain amount which was deducted in the nature of Income tax withheld (TDS). 

Whether it is mandatory to include this foreign income in his Indian return ? What about the income taxed in Jan to Mar 2010, as for Indian return it will not make part of the previous year income for AY 2011-12 ? Whether the credit of Tax deducted in US be taken in Indian return because he has already claimed it as refund in US return ? Would the long term capital loss arising from such foreign investment be allowed to be carried forward to the assesse in Indian return?

Replies (1)

I presume the investment in USA was done in accordance with the LRS under FEMA .

It is mandatory for Indian Resident to declare its world wide Income in the Indian Income Tax return.(sec. 5 read with sec. 6 of IT Act)

Income fromJan 10 to Mar 10 should have been a part of return for prevoius year 09-10.

I have doubts regarding the credit of taxes paid as refund on the same has been claimed and the purpose of DTAA stands defeated when refund and tax credit are obtained simontaneously.

Anuj

+91-9810106211

 

 

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