CA-ASPIRANT (CA-STUDENT ) (650 Points)
26 November 2009
P-A-W-A-N
(TAX - MANAGER AT GURGAON)
(541 Points)
Replied 26 November 2009
In case of a person resident in India, income from property situated outside India is taxable whether such income is brought into India or not.
Citation :- Arunachalam Chettiar Vs. CIT (1945) 13 ITR 183 (Mad).
CA. Savitha vijayan
(Chartered Accountant)
(212 Points)
Replied 26 November 2009
Yeah .......agree to Pawan... its computed in the same manner as in th case of a property situated in india.... In the case of a Non resident or resident ordinarily resident income frm foreign house property is taxable only if the same is received in india during the relevant accounting year...
Sunil
(Trader)
(2611 Points)
Replied 26 November 2009
Savithaji,
In case of Non Resident, only income that accrues in India is taxable in India. Ditto for NRI. In case NRI has any income abroad, merely remitting the same by himself to India for credit of his NRE accounts does not make it taxable in India. Usually Article VI of DTAA for USA (for others it may be numbered something else) deals with immovable properties.
If you take an example of NRI residing in USA, his property in USA can be taxed only in USA while he is resident in USA. It will not be taxed in India by Indian law. Once NRI is resident of India again, his property is taxed in both countries. It will be taxed in India as per Indian rules and deductions given per Indian laws will be allowed. However, he will be given relief of tax suffered in USA only on account of the House property and if the tax suffered is more, he will not get refund and excess will not be adjusted to his other tax liabilities in India.
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