Taxation of NR becomes resident

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An Indian person working in USA becomes a Resident for FY 17-18. He received salaries abroad deposited in his NRE account also he has some NRE FDs on which interest is accrued for the year 17 - 18. Now he received notice us 148 to file the return. Now Tax plus interest is coming in lakhs of rupees. Is there any way to save the tax .. ?? say any tax treaty between India & USA. Any good advice will be highly appreciated 🙏
Replies (9)

Check if the status is 'Resident Not Ordinary Resident" i.e RNOR.. In that case all foreign income will not taxable in India.

Secondly tax paid in US over these earnings will be deductible...in case of ROR

Ok sir .. he is R & OR. No tax paid in usa

How come salaries paid by US companies were non-taxable in US?

If he has not paid any tax there, he needs to pay it here. There is no other option left.

Okay sir.

Good Luck ...                                      

@ honourable Dhirajlal Lal sir, what is mean by bank reconciliation statement,for what purpose we are using this bank reconciliation statement in our auditing field and business field please give me a elaborately example and explanation
Residential status SEC 6(1)
1. 182 DAYS OR MORE IN THE PRECEDING FEW years.
2.stays in India for 365 days or more in a period of four preceding years.
3.


2.

A bank reconciliation statement could be defined as the summary of the banking and business accounts that reconciles a company's bank account with its financial record. The statement contains a record of all the deposits, withdrawals and other financial activities with a bank over a certain period of time. It is a useful tool to control fraudulent activities.

To complete a bank reconciliation statement, the accountant needs the following data.

  • Current and previous month's bank statement
  • The closing balance of the bank account
  • Any outstanding payments or withdrawals (cheques that haven't been processed yet)
  • Any fees charged by the bank on the account.

Benefits of a Bank Reconciliation Statement

  • A bank reconciliation statement ensures that all payments made by the company are processed and all deposits are correctly made on time.
  • Bank reconciliation statements are great for detecting frauds in financial transactions of large companies (which are difficult to keep track of, otherwise).
  • Bank reconciliation statements also help to analyze errors that can affect the financial transactions of a company or business.
  • Such statements help to assess the financial health of a company and take adequate financial decisions for the betterment of business
  • Bank reconciliation statements are also a key to accurate tax reporting. Without a proper financial statement, a company may end up paying too much or too less taxes.


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