Resident earning income outside india

Tax queries 484 views 2 replies

CA Shalini Prakash

Chartered Accountant

41 Points Joined September 2008

Sir,

One of my clients is a resident Indian. He is a director in a pvt. ltd in some other country. The company is owned, controlled and situated in that other country. My client goes there every two month, for around a week. He earns directors remuneration. He has not transferred the money to India. My query is, is he liable to be taxed in India for this Income?

If he has been earning such remuneration since past few years, what wll be the status if he transfers the entire amount, including the current year remuneration, in the current year?

Replies (2)

Guest

SINCE THE PERSON IS IN ROI STATUS HE REQUIRES TO MENTION THE INCOME IN HIS RETURN IRRESPECTIVE OF THE FACT THAT THE SAME AMOUNT IS TRANSFERRED TO INDIA OR NOT...

CA Jignesh

176 Points Joined July 2008

In your case, the director is resident of India so all his income i.e. Indian and Foreign Income are taxable in India. The residential status of Company is irrelevant so far the taxability of directer is concerned.

Also you have not stated whether the Tax has been deducted or paid income other country since on such income since in this case he can avail the tax credit on such. income if he has paid the tax in that country. In such case please go through the DTAA provisions.