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Income from UAE

Tax planning 363 views 4 replies

Pradeep Kumar

24 Points Posted on 31 December 2021

Hello,

My mother is a senior citizen.

This year she started some consulting service for a UAE based company. This is a UAE registered company.

She gets money credited into her India based savings bank account, directly from the company in Indian Rupees. This happens every month.

I would like to know if this must be treated as a regular salary for her and file her taxes accordingly.

OR if this must be considered as Schedule FSI: Details of Income accruing or arising outside India.

Please let me know, appreciate it.

Thanks, Pradeep

Replies (4)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211715 Points Posted on 31 December 2021

It is income accrued in India, should be declared as consultation fees under head PGBP.

sabyasachi mukherjee

Profession Business

28207 Points Posted on 01 January 2022

Please mention the nature of income , is it from investment from trading I'm commodities or else anything.

Pradeep Kumar

24 Points Posted on 01 January 2022

Thanks Sabyasachi for your response.

The income is related to the consulting service. The amount is about 1.5 lacks per month.

It's paid directly by the company in Indian Rupees into her savings account.

Thanks and appreciate your help.

Pradeep.

Hemant Sony

Chartered Accountant

32 Points Posted on 08 February 2022

If she received such consulting fees under an employment contract, in that case you can consider it as salary income otherwise it will be treated as PGBP income and as she received it directly in their saving bank account maintained in india, it will be taxable in her hand in india.