Please clarify the following,
A person working in USA and receiving salary there. and he is transfering the same to his parent in india. When filing the income tax of his parent how we can treat the same.
Naman
(Accountant)
(339 Points)
Replied 14 October 2011
It is just remittance of income, which has already been taxable in foreign, where the income was earned and received. Therefore, Parents are not liable to pay any tax thereon. As the ITR does not have any specifice coloumn for this, no need to disclose the same. It is advisable to maintain proper documents showing its source, if dapartment assesses, it may be taken as income of the receipant by him, if proper documents are not produced before him.
Kashif Mulla
(CA Final Student)
(38 Points)
Replied 19 October 2011
it is just remittnaces rrcd by parents...no need for tax or any disclosure in return
CAclubindia
