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Income tax return with foreign income with tax paid in foreign country

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Gaurav

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32 Points Posted on 01 January 2023

Hi,

In FY-2022-23, I have moved to USA and have earned income on which I have already paid tax in USA. USA and India has already signed DTAA (Double Tax Avoidance Agreement), hence, this income earned in USA should not attract any tax in India.

My question is that, how can I show my income earned in USA while filing income tax return in India (for income occurred in India) so that if in future I remit this amount to India, the source of income is not questioned.

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Quick Summary

This discussion clarifies how to handle foreign income earned and taxed abroad when filing your Indian income tax return. It explains that if you are considered a Non-Resident Indian (NRI) for the financial year, you generally do not need to declare your foreign income in your Indian tax return, as per Section 6(1) of the Income Tax Act. This approach helps ensure the source of funds remains clear should you decide to remit them to India in the future, especially given the Double Taxation Avoidance Agreement (DTAA) between India and the USA.