09 April 2013
If I am earning income from an Indian resident but from abroad i.e the person sending money lives in foreign country,an he directly transfer amount into my account from there.Is there any benefit i can get in IT or any problems will be faced by me.Benefit in the sense,as i am getting foreign currency in India. Eg; A person Has gone to Dubai and while going i have lent him some money and for that he is going to pay me interest but he will send me from Dubai i.e he will transfer me money in Dirams in to my bank account. In this case what will be the tax treatment and should i have an account with nationalized bank only or its ok with the private bank. Please tell me all the Permutation(benifits & losses) that can happen in this case.
10 April 2013
As you are a resident in India, the entire income from any source in the world is taxable in India. I do not see any benefits available from this.
30 May 2013
You have to go through your letter of appointment. If the place of work is outside India then you have to open an account out of India and the money should be transferred in that account. In this way no tax in India as you have not rendered any services in India.
If you are working in India and the employer is sending money in your account then the Indian Income Tax Act will apply to you and you can claim the benefits as available by paying money in LIC, PF or PPF etc. the balance amount is liable for tax in India.
CAclubindia
