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Have Foreign Assets and Income? Do I require to show it in ITR return

 

Mr. Manish is a resident in India since August 2013. Prior to this, he was working for a MNC at USA for 2 years. Out of his savings at USA, he has invested money in NASDAQ stocks and also holds a bank account. Now Mr. Manish is working for a startup company earning an annual salary of Rs.30 Lakhs. While filing his return for the Financial Year 2013-14, we asked him about his assets abroad. He wanted to know whether it is mandatory under the law to this disclose his overseas assets to Indian Income Tax authorities.

 

Declare Foreign Assets 

 The Schedule FA of Income tax return requires resident assesse to disclose overseas assets. It need not be filled up by a ‘not ordinarily resident’ or a ‘non-resident’.

 

Following particulars relating to overseas assets is to be filled.

  1. Foreign Bank Accounts: Name and address of the Bank, location, the account holders name and the peak balancemaintained in the bank during the year after converting the same into Indian currency.
  2. Financial Interest in an Entity: Name, Address and nature of entity such as firm, company, trust where the interest is held and the total investment held at cost during the year after converting it into Indian currency.
  3. Immovable Property and other Asset: location of the property along with total investment.
  4. Details of any account located outside India in which the assessee has signing authority. Along with address of the institution where the account is held.

 

Declare Foreign Income

 

In case of resident Individuals, the global income is taxable in India. The Schedule FSI to be filled by such taxpayers. The details to be given are –

  • Fill the details of income (with the breakup of such income from abroad under the heads of income from salary, house property etc.) forming part of total income, accruing or arising outside India.
  • Tax paid outside india under various heads of income
  • Relevant article of DTAA if tax relief is claimed
  • For country code use the International Subscriber Dialing (ISD) code of the country.
  • The Tax Payer Identification Number (TIN) of the assessee in the country where tax has been paid is to be filled up. In case TIN has not been allotted in that country, then, passport number should be mentioned.

 

An individual (qualifying as a resident) who holds assets abroad is also required to file his I-T return even if he does not have any income in India.

 

 

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About CA Prakash Chartered Accountant Bangalore

CA Prakash Chartered Accountant Bangalore
CA Prakash is a practicing chartered accountant and partner in Bangalore -based CA Firm. For further information or query, please email it to [email protected]
  • Manish

    Hi,
    I worked in India from April’15-Oct’15, and moved abroad from November onwards. What tax / income shall i highlight for my foreign income for this assessment year?

  • jasbinder

    Hi,

    I was working in India and having salary income when I was in India, from Apr14 to Jun 14 (3 months) and accordingly TDS was deducted by Co. Then I shifted to foreign and earning salary income and became NRI status. Because this salary is exempt no TDS was deducted.
    Now when I file return for Apr14 to Jun15 salary do I have to disclose the foreign salary also ?

    • simplifiedlaws

      Hello

      As per your query, you have stayed less than 182 days in India during the FY 2014-15. Hence your status become non-resident for the FY 2014-15. Non-resident don’t need to show global income in his return. I mean it is sufficient to show only income from Indian source in your return.
      Thanks and Regards,
      CA Prakasha | Partner
      Balakrishna & Co. | Chartered Accountants,
      No.24, Comfort Towers, 10th Cross, Wilson Garden, Bangalore – 560 027 Mobile : 9448080886
      skype: caprakasha
      Web: http://www.balakrishnaandco.com
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