Thursday, May 30, 2024
HomePersonal FinanceIncome Tax Return: Attention taxpayers! Now the taxpayer will have to give...

Income Tax Return: Attention taxpayers! Now the taxpayer will have to give information about these assets and sources of income, notification issued

Tax on Foreign Income: Many people earn outside this country as well. In such cases, some additional work has to be done while filing the Income Tax Return, otherwise the department may send a notice…

Time is going on to file Income Tax Return. In such a situation, it is time to show the income and pay tax on it. People have income in many ways. Some people earn by living in the country and some earn money by doing jobs abroad. There are many people who work in India for some time and go abroad after getting a good offer. There is a problem in front of them that whether they have to pay income tax or not, if they have to pay then how to pay, what are the things to be kept in mind?

If you stay in the country (India) for 182 days in a financial year, then you are considered a resident. Global income of a resident Indian means worldwide income comes under the purview of tax. If you are an Indian citizen, then your earning will be taxable both in the country and abroad. The same income tax rates as applicable to a person employed in India.

This is how you can report

Salary received abroad has to be shown in Income From Salary Head. You have to convert the salary received in foreign currency into rupees. Employer details have to be given. If any kind of tax has been deducted on this salary, then you can claim tax credit by showing it in the return. You can avoid double tax by taking advantage of Double Taxation Avoidance Agreement (DTAA). If there is no DTAA with the country where you are working, then relief can be taken under section 91.

Income tax notice can be received

In case of deduction and exemption available in the country, tax exemption can be availed. If you have made any investment under 80C or 80D, then you can take tax exemption. You will not be able to use the discount received abroad here. On earning abroad, you have to give information about FA i.e. foreign asset in the income tax return. If you have any property or bank account abroad, give proper information about it to the Income Tax Department. Failure to do so may result in a disclosure notice.

The department again alerted

In this regard, the Income Tax Department has again alerted all the taxpayers. The department has said in a recent tweet that taxpayers who have a bank account outside the country or have any other asset or income, must fill the foreign asset schedule while filing income tax return for the assessment year 2023-24. Taxpayers should ensure that they have declared all their foreign assets and sources of income in such cases.

10 lakh penalty will be imposed

If a taxpayer is unable to do this, then the Income Tax Department can take action against him. The department says that in such cases a penalty of Rs 10 lakh can be imposed under the Black Money (Undisclosed Foreign Income and Assets) and Taxation Act, 2015. Remember that the deadline for filing income tax is 31 July 2023.

Shyamu Maurya
Shyamu Maurya
Shyamu has done Degree in Fine Arts and has knowledge about bollywood industry. He started writing in 2018. Since then he has been associated with Informalnewz. In case of any complain or feedback, please contact me @informalnewz@gmail.com
RELATED ARTICLES
- Advertisment -

Most Popular

Recent Comments