Income earned from outside india is taxable or not?
Here assessee is a Moulana, 30yrs old, has been teaching in Tehran University(iran) for last 8 years. His nationality is indian. Actually he went to Iran as a student & on visa it is clearly mentioned as a student but after getting degree he continued & has started teaching in University, for this Govt of Iran pays him tax free salary. I have some points:-
1) Whatever he is earning in Iran, is taxable in India or not.
2) If taxable in India, what slab rate should I take ?
3) Investment which he has made in india for his wife, himself, children like LIC, medical, education is deductibele u/s 80c & 80D or not becoz his income source is out of india.
There is one more issue.....as below...
As he is a moulana he gets some charity amount in cash in his personal account in india from indian only not outside person which exceeds Rs 10 Lac in cash in his account. I asked him to stop taking cash directly in his personal account as whole of cash is deemed to be his income then he said, people hardly release charity amount & most of them are unable to give in cheque. I want to know in that case what points should I consider to calculate, amount as charity in cash in his account is not his income. Plz advice me to make tax planning....What should I do to make income tax dept. that cash in his personal account is charity as his not a personal income.....Plz advice me...
Mayur Kadam Nashik
Maulana is not liable to pay tax in India bcs he is not a Resident of India. Also his income is not received or deemed to be receive in India.Income recived from Investment made in India is liable to tax.