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: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company :: TDS :: VAT Audit :: VAT RATES :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: due date for vat payment :: empanelment
News Headlines »
 CBDT releases Income Tax Return statistics for last two fiscals
 CBDT issues second round of Certificates of Appreciation to tax payers for their contribution towards Nation building
 FinMin looks at cut in corporation tax
 Draft Rules for prescribing the method of valuation of fair market value in respect of the trust or the institution-Chapter XII-EB of the Income-tax Act, 1961- reg.
 India is moving towards a flawed GST
 ICAI to organise two-day international conference in Hyderabad
 Here's how to calculate tax payable on your capital gains
 Income Tax calculations for the financial year 2016-17
 CPE Events 17 October - 22 October 2016
 High Court raps I-T Department for wrong tax demand
  CBDT signs 5 advance pricing pacts with Indian taxpayers

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