22 December 2010
According to Indian RBI, an indian national is permitted to remit $200000 outside india. I wish to know if we are permitted to remit to an account of a broker(set up outside india) to avail of services. And if yes, then to the profit earned, do we pay any tax? and if yes, then what is the slab?
23 December 2010
Yes you can avail the services of broker and even purchase, house, shares from the money so remitted. For the profit earned on that income we need to pay tax in India.The slabs shall depend on the type of income .
23 December 2010
Thanks for the quick response. I want to know further, if the profit earned outside india is already tax exempt, then are we still liable to pay tax? if yes, then under which section of the P & L do we classify them.
23 December 2010
The income should be exempt in India , and exemption in the country of investment has no value. Also you are not very clear in your query.
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