Foreign partnership income

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Arpit (Querist)

10 February 2012 Hi,
Dear Sir,

A person who is Retired (Indian Resident) and have Interest from Bank and getting income from USA partnership firm as passive foreign partner and filled return as NR at USA and paid tax over there.

Now my question is income from partnership firm is business income or dividend?

and in which IT form we have to file?

Reply Soon

Thanks
Arpit

Vishal D Shah

Vishal D Shah (Expert)

11 February 2012 ITR3. it is not dividend. But business income. If remuneration then taxable in India. If share of profit then exempt from tax.

CA. Anuj Gupta

CA. Anuj Gupta (Expert)

13 March 2012 I doubt whether an Indian resident can become partner in USA Partnership Firm.

Anuj
+91-9810106211
femaquery@gmail.com

Vishal D Shah

Vishal D Shah (Expert)

13 March 2012 Why Anuj, What restricts a resident? LRS permits.

Let me know your apprehensions if any.

regards.. vishal

CA. Anuj Gupta

CA. Anuj Gupta (Expert)

13 March 2012 Vishal, can you please bring out the phrase in LRS scheme which allows Indian resident to form partnerships outside India.

Also LRS permits only those activities which are otherwise permitted under FEMA. Regulation 120 doesn't permit individuals to form partnerships outside India,hence the same can't be permitted under LRS.

Anuj
+91-9810106211
femaquery@gmail.com

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