Tax liability

The salary received from Indian company and from US, both is taxable.

Originally posted by : Mihir
	The salary received from Indian company and from US, both is taxable.

Thanks for the reply.

  I am aware that transactions are recorded via PAN Card, but do we have any chance of tax exemption.  

 I have been advised by other ppl that as the check is deposited in personal account, they may not track it. 

Sorry that I have asked about tax exemption.

All the tax deductions/exemptions options to any resident of India are available to you. It is true that while filing ITR you can show some other bank account, and you use another bank account for US cheques. But there is always some risk involved since cases of money laundering is growing rapidly. There could be ways to hide this transaction completely but I am not aware of it yet.  

Dear Santhosh,

This is to inform you that RBI has all records of foreign currency transaction.

Income Tax - A.O. can easily trace the same. Then, A.O. may issue penalty for concealment of income i.e. 300% of concealed income and some other penalty according to case.

You may have some obligation under FEMA.

For futher information - rahul @ carahulmahajan.com

Amount received from US, sERVICE TAX SHALLL BE APPLICABLE