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Tax rate for foreign income in India

Tax queries 1263 views 5 replies

I am an Indian Resident. I am current working as a affiliate marketer. The nature of business is that i am a publisher of several affiliate networks in USA. Then i spend money in advertising company's (USA Company) . As a result i get money in Affiliate network.  After that they bank wire my money to Indian Bank Account. Currently i am earning around $5000 Per Month (3Lakh). How much is the tax rate for this foreign income.  The expenses  is paid to USA company, The income is from USA Company and also i am permanent Indian Resident.  So 30% income tax rate  is applicable for me? 

Replies (5)

the whole of your income net of expenses is taxable in India.  Since your an individual, your income shall be taxed at slab rates:

  Income Slabs Income Tax Rate
i. Where the total income does not exceed Rs. 2,00,000/-. NIL
ii. Where the total income exceeds Rs. 2,00,000/- but does not exceed Rs. 5,00,000/-. 10% of amount by which the total income exceeds Rs. 2,00,000/-.
Less: Tax Credit - 10% of taxable income upto a maximum of Rs. 2000/-.
iii. Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-. Rs. 30,000/- + 20% of the amount by which the total income exceeds Rs. 5,00,000/-.
iv. Where the total income exceeds Rs. 10,00,000/-. Rs. 130,000/- + 30% of the amount by which the total income exceeds Rs. 10,00,000/-.

Surcharge: 10% of the Income Tax, where total taxable income is more than Rs. 1 crore.

Education Cess: 3% of the total of Income Tax and Surcharge.

You can claim deduction for the taxes, if any, deducted by the US companies against the payments made to you.

Originally posted by : Nikhil Kaushik

the whole of your income net of expenses is taxable in India.  Since your an individual, your income shall be taxed at slab rates:

 

This is applicable when a individual generate income in India. But in my case the income is generate in USA . So 30% tax applicable above 10 lakhs income

Since you are a resident, where you earn income is not relevant.  You shall be taxed on your global income at the normal tax rates. 

 

 

I am Indian Resident. I am also partner in an LLP but has no income from that LLP. I am also an affiliate marketer. I am earning approx. Rs. 10,000 per month in last financial year through affiliate marketing. Can u suggest that which ITR form should I use. Thanks ina advance

you need to File ITR 4.  


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