Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: VAT RATES :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: due date for vat payment :: ACCOUNTING STANDARDS :: empanelment :: VAT Audit :: articles on VAT and GST in India :: TDS :: ACCOUNTING STANDARD
 
 
News Headlines »
 Invoking Writ Jurisdiction For Income Tax Matters
 How to file income-tax returns online
 How Income Tax Returns Are Scrutinised
 All About New Income Disclosure Scheme to make Demonetisation successful
 Your deposit may draw income tax notice
 Accepting payment under IDS 2016
 New disclosure scheme could see 50% tax and 4-year limit on cash use for unaccounted deposits
 Pay 50% tax on unaccounted deposits, or 85% if caught, says Modi government
 Deadline to pay property tax in old currency extended
 Cabinet clears amendments to Income Tax Act
 Have you got interest on your income tax refund?

Taxpayers must disclose income derived from foreign source
September, 13th 2008

The growing spate of overseas acquisitions and increasing incomes for Indian residents from foreign jurisdictions has prompted the Central Board of Direct Taxes (CBDT) to set the record straight on disclosure and taxability of such incomes.

Resident taxpayers are now required to disclose in their income tax returns all incomes derived in treaty countries and where such income may be taxed.

Such foreign source incomes have to be included in the total income chargeable to tax in India, but the Indian resident would be allowed to avail himself relief of double taxation through the elimination method or any other method specified in the DTAA (Double Taxation Avoidance Agreements), according to a CBDT notification issued here.

This is a clarificatory notification. It provides a formal mechanism to allow double taxation relief for taxes paid abroad (in treaty countries). So far, the relief was being given on the basis of treaty. There were arguments in certain quarters that there was nothing specific in the Indian law to allow the relief, Mr Uday Ved, Head of Tax and Regulatory Services, KPMG told Business Line.

He highlighted that most of the DTAAs that India had entered relieve double taxation through the credit method.

Taxation methods


There are two kinds of double taxation relief unilateral relief and bilateral relief. When two countries negotiate an agreement for providing double taxation relief, such relief is provided through DTAA and is known as bilateral relief. A DTAA seeks to eliminate double taxation through exemption method (also known as elimination) or credit method.

In credit method, the residence country grants credit for taxes paid by its resident in the source country. In exemption method, the residence country exempts the income that has arisen in the source country. The exemption of income may be subject to compliance of certain conditions by the taxpayer.

The CBDTs clarificatory notification will improve disclosures by resident taxpayers to the tax department and ensure levy of appropriate tax in India, in respect of their global incomes. Residents are taxable in India for their global incomes, Mr G. Ramaswamy, Central Council member of the Institute of Chartered Accountants of India (ICAI) said.

He noted that employees sent abroad by Indian companies and continuing to be a resident here had disputes with assessing officers on admissability of tax deducted from the salaries paid abroad.

 

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Portal Design Website Design Portal Designing Website Designing Web Design Professional Portal Design Professional Website Design Professional Web Design Portal Design India Website Design India Portal Designing India Website Designing India Web Design India Professional Portal Design India Professional Website Design India Chicago Professional Web Design New York Professional Web Design California Website Design Florida Website Design New Jersey Website Design Britain UK Website Design London Manchester Website Design

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions