INCOME TAX

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CA shainan shah (Querist)
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01 July 2009 MY CLIENT'S SON WAS WORKING IN U.S.HOWEVER THEY WERE FILING HIS RETURN IN INDIA ALONG WITH THEIR RETURN WITH THE STATUS OF RESIDENT.NOW HE RETURNED BACK TO INDIA PERMANENTLY.HE EARNED AROUND RS.30 LACS IN U.S.NOW MY QUERY IS THAT CAN I DIRECTLY TAKE THIS 30 LACS INTO HIS CAPITAL ACCOUNT AS HE HAS ALREADY PAID TAXES IN U.S.MY CLIENT WAS SHOWING INTEREST INCOME IN HIS RETURNS.

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)
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01 July 2009 If you were earlier filing the return of Income in the status of resident, then you will have to calculate tax on US income also and will have to go according to DTAA or Unilateral/bilateral relief. I will suggest you to go according to Incoem tax provisions. You can show this income as credit to the capital account but still you will have to calculate tax accodingly and claim the tax paid in US as rebate from the tax paable in India.