one of my friends working in Japan wants to remit 70 lac rs back home. He stayed in India for more than 182 days in the year FY 2011-12. Now whether this amount will be taxable in India & what if he transfers this money to his fathers account. Plz Help. Also if he has to open some special account or in saving account he can transfer the money. Amit
02 May 2012
Dear Friend, The taxability of an Individual will be decided on his residential status . In your case the person is residing in India for more 182 days , then he is resident and ordinary resident. His income form all over world will be taxable in India. Thanks
02 May 2012
If your friend is "resident and ordinarily resident" in India, the amount your friend earned in Japan is taxable in India subject to DTAA. (70 lac must be the remittance out of the earnings) The amount of earnings is taxable and not the remittance.
CAclubindia
