HOW TO FILE ITR FOR INDIAN AS WELL AS FOREIGN INCOME

QUESTION

FROM-MILAN SAHU

Hi Akhay,

Greeetings!!

In the FY-2013-2014 for the first 6 Months  I have professional income of 990000 INR from Indian company and then for the next six month I stayed overseas and have my income from outside of India. I have couple of queries.

1.       How can I file the ITR ? Which form to be used?
2.       If in case this year I earned the income from overseas do I have to file  ITR?

Kindly help .

ANSWER-

Hi Milan ,

Thanks for posting query, please get your answer below:

1. For taxability of Indian and Foreign Income, you will first have to find out your Residential Status, read the article from link given below, and first determine your residential status:

http://www.ngoandtaxconsultant.in/2014/06/residential-status-for-individual.html

2. After determining your Residential Status, please see below:

If you are Resident and Ordinarily Resident, Taxable Income= Income from India + Income From Overseas

If you are Resident But Not Ordinarily Resident, Taxable Income= Income from India + Income From Overseas (Only if Business connection is in India)

3. Now coming to your queries, you will have to use ITR 4 as you have Income from Business and Profession. If your foreign income is also taxable, then club it with Indian Income, pay tax and file your return and if it is not than file return after paying tax on Indian Income.

4. Don't worry if your Both Income is taxable in India, you can claim Double Taxation Avoidance Benefit from country overseas and you will not have to pay taxes there.

Hope this will help you, feel free to ask further queries.