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Income Tax Return Filing 2024: Most of the tax payers in our country earn income in different ways. Some people earn while staying at home, while others go abroad and earn by doing jobs. There are many people who work in India for a while and then fly overseas with a good offer. Now, should such people pay income tax or not?. If you have to pay tax, how to file ITR, what items to report?
A person is considered a resident if he stays in India for 182 days in a financial year. Global income earned by an Indian resident is subject to the Income Tax Act of India. The tax rates applicable to that person are the same as if they were employed in India.
A person with foreign income should report this in ITR
Salary received abroad should be shown under the head ‘Income from Salary’. Salary received in foreign currency should be converted into rupees. The details of the working company should be given. If advance tax is deducted on salary, it can be shown in IT return and claimed for refund. With the benefit of ‘Double Taxation Avoidance Agreement’ (DTAA) one can avoid the hassle of paying tax in both countries. If India does not have a DTAA with the country where you are working, you can get relief under Section 91.
IT notices can be received
If deduction or exemption is applicable in our country, they can be used freely. Investments made under section 80C or 80D are tax deductible. Deductions availed abroad cannot be availed here. If the income is earned abroad, information about FA (Foreign Assets) should be given in the income tax documents. If you have any property or bank account abroad, give correct information about it to the Income Tax Department. If it is found that you have hidden the information then you will get a notice from the IT department.
A fine of ₹10 lakh!
The Income Tax Department regularly alerts the taxpayers about the income earned abroad. The IT department has suggested that while filing the tax return for the financial year 2023-24/ assessment year 2024-25 if you have bank account, assets, income etc. outside the country, you must fill ‘Foreign Assets Schedule’.
If, the taxpayer does not disclose the foreign earnings, the Income Tax department can take action against him as per law. Under Black Money (Undisclosed Foreign Income & Assets) & Tax Act 2015 Rs. A fine of up to 10 lakhs can be imposed.
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