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Reporting us social security income

Peter Boxer (Consultant) (103 Points)

16 June 2013

I am asking this question on behalf of a relative who is a US citizen (of Indian origin) living in India permanently on OCI status. He is retired and gets US Social Security Income.

As we understand it, per the US-India DTAA treaty US Social Security Income is not taxed in India. However, the question is, does it still need to be reported on the India Tax Return? If so, where does it get reported (which form and which line on the form) and how does it get excluded from taxable income?

Thanks for the assistance on this.

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7 Replies

gbalakrishnan (owner) (1373 Points)
Replied 16 June 2013

indian tax form if does not contain, why to report? pls ask this querry to Assessment officer he will be confused but P chidambaram will bring in some retrospective amendments, as he wants more ax payer moneys my dear consultant!

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CA Sripal Jain (Associate Finance) (709 Points)
Replied 17 June 2013

Hi,

As per recent budget,one needs to disclose foreign assets and disclose income dervied from aborad ,the revised ITR forms will let u know whether you need to fill the treaty related information or reliefs,but going by the interpretation and revised ITRs,you need to disclose the income in ITR if there is any point in revised ITR,,just wait for revised ITR.

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Peter Boxer (Consultant) (103 Points)
Replied 17 June 2013

Thank you, Mr. Jain for your quick and thoughtful response. Follow-up question -- how do I know if the forms that I am currently downloading from IT Dept e-filing webiste if they are the old or revised? Was there some announcement on this from govt and when are the revised forms expected? And what happens if one has already filed? Thanks.

Peter Boxer (Consultant) (103 Points)
Replied 17 June 2013

Also, do foreign assets and income have to be reported only if you are Resident or even if you are RNOR?

CA Sripal Jain (Associate Finance) (709 Points)
Replied 18 June 2013

if you are NR or Resident,whatevr be the status,you must still disclose in ITR,however we are still awaiting revised ITR forms,till then you dont need to worry at all,next year you might need to show,this year revised forms havent come as far as i undersntd WITH RESPECT TO ITR-2,3,4,you can ask IT dept too about the update regarding revised forms.

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Peter Boxer (Consultant) (103 Points)
Replied 18 June 2013

Mr. Jain,

Thank you for your continued help. Of course geting any info from IT Dept is practically impossible, they never reply!

I did look again at the latest ITR forms on the e-fling website. For ITR-1 it says it cannot be used by residents with foreign assets, so presumably for non-residents it is OK, but not clear for RNOR.

In ITR-2 I saw 3 schedules: FSI (Foreign Source Income), FA (Foreign Assets) and TR (tax relief under section 90/90A & 91). For FA it says not applicable for Non-Residents, so presumably FSI also not applicable to non-residents, but again unclear for RNOR. Here are my questions:

1. What is Section 90/90A and 91? Is that DTAA?

2. If these schedules are in ITR-2 does that mean this reporting is now required for AY2013-14 and we cannot wait until next year?

3. How to clarify RNOR requirements?

Thank you.