Foreign inward income

This query is : Resolved

RAHUL MALHOTRA (Querist)
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12 March 2013 Hello

I received foreign remittance from various countries. Purpose showing on Foreign inward remittance certificate is Tour and Travel. Now i am not understanding shall i show this income or not.It is someware about 7 to 8 lacs. Also please let me know section if it is taxable. I am not sure whether they have deducted tds or not. Please suggest what to do?

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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17 March 2013 consult a person who knows about how to deal with the situation.

Anuj
Femaquery@gmail.com

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RAHUL MALHOTRA

RAHUL MALHOTRA (Querist)
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18 March 2013 Sir can you advise some person who can able to help me in this regard??

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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25 July 2024 If you have received foreign remittance for "Tour and Travel" purposes, it needs to be assessed to determine its taxability in India. Here are the steps you should follow:

### 1. Determine Taxability:

- **Nature of Income:** Income received as foreign remittance for "Tour and Travel" could potentially be taxable in India depending on the specific circumstances.
- **Taxability Criteria:** Foreign income is generally taxable in India if it accrues or arises in India or is received or deemed to be received in India. However, specific provisions under the Income Tax Act, 1961 govern the taxability of such income.

### 2. TDS Deduction:

- **Check for TDS Deduction:** Verify if TDS (Tax Deducted at Source) has been deducted on the foreign remittance. This information is typically mentioned in the Foreign Inward Remittance Certificate (FIRC) issued by the bank handling the transaction.

### 3. Reporting in Income Tax Return:

- **Income Tax Return (ITR):** Report the foreign income received under the appropriate head in the Income Tax Return (ITR). In your case, if the income is related to "Tour and Travel" and not connected to any business or profession, it may be considered under "Income from Other Sources."

### 4. Taxation and Compliance:

- **Tax Rate:** The foreign income will be taxed at the applicable slab rates under the Income Tax Act.
- **Documentation:** Keep the FIRC and other supporting documents (like bank statements showing receipt of funds) for audit and verification purposes.

### 5. Consultation:

- **Professional Advice:** If you are unsure about the tax implications or if TDS has been deducted, consult with a qualified chartered accountant or tax advisor. They can provide guidance tailored to your specific situation and ensure compliance with tax laws.

### Conclusion:

It is crucial to accurately report and pay taxes on foreign income received to comply with Indian tax regulations. Ensure you understand the taxability of the income, whether TDS has been deducted, and report it correctly in your ITR. Seeking professional advice will help you navigate the complexities and optimize your tax obligations effectively.