A person residing in Abroad from the last many years. He transfer money from abroad to India in his Bank Account. That money is used by the family members for making FDRs in his name and for making PPF deposit or LIC savings.
What will be the Gross income if we have to file his Income Tax return?
Will Money receiced from abroad be included in his gross taxable income or that money is exempt from tax?
Please clarify...
enjoying a NRI status , his abroad income will be exempt , but income earned in india by him ( in his name ) will be taxable ,such as fdr interest etc. but ppf interest is exempt
The amount transferred to India will not be taxable just for being received in India.If he is an NRI and the source of Income is situated outside India then it will not be taxable in India.
The income earned from investing such amount in India will be taxable. But we need to see what type of FD he has opened. If he is maintaining NRE Account, then this income will be exempt. Income from NRO FD will be taxable.
Deductions upto 1.5 Lakhs for payment to PPF and LIC will be available only against taxable income.
Any remittance from abroad is not taxable. But interest accruing from those deposits which are made out of NRI inputs are taxable, since such interest accrues or arises in India
Thank you everyone
I want to know whether money received from abroad will be showed in ITR under exempt income head or not?
All guys u r little confuse here.
If money received in Bank accounts (Jointly Owned With Family) - then whole sum will be liable to tax in india u/s 9(1).
If money received in Bank accounts (Family memebrs not him) - then whole sum will be exepmt from tax.
CAclubindia
