Hypothetically, if I were to win 10 million dollars in a lottery in America,
1. Will I be liable to get exemption under DTAA agreement between India and USA and be required to pay tax only in America and not in India.
2. Can I park the said 10 million usd dollars in foreign currency in an account with a foreign bank and use it to invest and buy property abroad and not bring it back to India?
Thank you in advance.
@ Godam,'
It depends on your residential status. If you are Resident and ROR in India then your global income is taxable in India and accordingly taxation provisions will apply to win of the lottery.
I understand. but will I be required to remit the USD winnings back to India or can I keep it in an American bank account after paying the taxes to the Government of India?
CAclubindia
