Foreign bank deposit
as a NRI Mr X was employed overseas by an International firm. His all bank deposits are from earned income on which that country taxes are paid. Hence it is not 'black money'
Now Mr X is resident Indian for tax purposes. my question is:
when this money is brought back to India later on say after 3-5 years of changing status. How principal amount will be treated for tax purposes. I understand that on interest income I have to pay tax in India every year.
Asked 2 years ago in Income Tax from Delhi, Delhi
Yes , As per the clarification by the Government , the income earned outside India in the form of salary and tax in that country is not taxable in India and not a undisclosed income . However , any interest accrued thereon shall be covered here and that is to be reported here if not shown in the ITR filed earlier . Similar provision also exist for the Pension fund and interest on the pension fund has to be disclosed here . If the interest on the pension fund has already been taxed , the person can claim the relief for the tax paid in the foreign country .
Talk to Prakash Sinha
4.9 on 5.0
Income Earned outside India by a non resident is not taxable in India as long as the same is not received directly in your Indian bank account when your earned it. It is apparent from your question that the said amount is not received in India and you want to bring the same to India.
The principal amount when remitted to India will not be considered as income. In fact even the interest amount is also not considered as income at the time of remittance. Interest would be taxed in India the year of accrual depending on whether you were resident at the time of such accrual.
If you were resident at the time of accrual of interest but you have not disclosed this income in your Indian Income tax return, although above the taxable limit, then perhaps this will amount to black money and not otherwise.
Talk to Sagar Jayawant
5.0 on 5.0
Principal money represents savings from income taxed outside India and it is certainly not black money. Interest on money braught to India will be taxed when gross total income exceeds basic exemption limit under I T Act.
Talk to Vijay N. Kale
4.9 on 5.0