Income tax on foreign income

Dear All,

I have one question regarding the income Tax should be charged on foreign income the details are as follows,

One person worked in abroad 3 year and he come back to india in Nov 2011, and earned income in india from Nov-2011 to March 2012. 

Income Tax on foreign income from April 2011- Oct 2011. should be charged, and also the income earned from him in the abroad for the year 2008-09, 2009-10 and 2010-11 is also taxable in india.

 

Replies (2)

As per Sec 6 of income tax act,the chargibility is depend upon person resident in india.Again if person is non resident ,then nexus or source of inco,e should be check.in your ques for year 08-09,09-10,10-11 should depens upon Residental stauts  of person and nexus theory ,then any charability should decided.And in year 2011-12 the income  should be charge as normal provisions.

 

Assuming that the person is citizen of India, in the year 2011-12 as he has returned in November which come out to be less than 182 days as per section 6 he will be non resident and income from outside india will not be taxed. In the next year  again depending on section 6, residential status needs to be checked.

When the person was abroad in 208-09, 2009-10, 2010-11 then his status wuld have been non resident and thus  India vont have nexus to that income.

 

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