[binand]

Originally Posted by vinodh_eee

But closing value is the current value. I thought we have to put the cost price in schedule AL.

Oh sorry! You are right. Please disregard.

[vinodh_eee]

Originally Posted by binand

Oh sorry! You are right. Please disregard.

No problem. I managed to get an approx cost from CAMSonline (https://mycams.camsonline.com/) and Karvy's investor portal (https://mfs.kfintech.com/investor/).

[volkman10]

The inevitable has happened:

ITR filing deadline for FY 2020-21 extended to Dec 31.

[arpanjha]

I need some advice, does income from sources abroad in foreign currency credited into an Indian bank account taxable in India for IT? I believe a lot of techies get paid in foreign countries and then they transfer their money back to Indian accounts of theirs or their parents, are those taxed in India?
I do some consulting work for which I get paid in US Dollars, earlier before covid I used to travel frequently, and I used to take that fee in cash and upon return just exchanged them, but those amounts were not significant. Since the world has started working online, my work too has increased and so has the frequency of my fees being paid. I have been using PayPal and sometimes Western Union to get paid, but I am not sure about the tax liability in India, since most of my fees are already taxed abroad and I get the tax deducted amount from that country. My CA told me foreign income earned by an Indian individual is not taxable in India, is that true?
Also, all my transactions show up as credit in INR in my bank accounts since the currency conversion happens at PayPal or Western unions end. Can anyone please help me get some clarity on this?

[SatJordan]

Originally Posted by arpanjha

My CA told me foreign income earned by an Indian individual is not taxable in India, is that true?

For an Ordinarily Resident Indian, global income is taxable. However, there is an option to claim Foreign Tax Credit (FTC). This includes the taxes paid or withheld (WTH) in the foreign country in respect of the income earned in the respective country. Further, credit can be claimed for the taxes paid in those countries where India has entered into a Double Taxation Avoidance Agreement (DTAA).

Relief of the FTC can be claimed while filing your ITR under Section 90 to 91 - your CA may be able to help you out with this. All you need to do is file Form 67 - online in the portal and disclose the amount of income and taxes paid or WTH thereon in the foreign country. Please note that FTC shall be limited to lower of 1. taxes paid abroad or 2. tax payable on that income in India.

I hope this helps.

[SatJordan]

Originally Posted by KL01toKA03

Is it possible to select the new tax regime for the current year, and switch to the previous regime the next year (will have a home loan)?

Yes, for a person having income from salary, he/she may choose to switch from old to the new regime for the current Assessment Year (AY) and new to old for the subsequent AYs. However, unlike under the old regime, if you are having a home loan, you will not be able to claim any deduction in respect of the interest as well as principal paid in the new regime. So, it is better not to opt for the new regime as you will lose out on the deduction.

Originally Posted by m8002?

Also if you have a home loan ( unless its a very small interest component), the old one will result in a lesser tax outgo.

You are absolutely right.

Originally Posted by KL01toKA03

What is business income? Does it include capital gain from shares?

Here are examples including but not limited to income from business or profession - the business of buying and selling of goods, supply of goods, retail or wholesale shop, manufacturing of goods, logistics, consultancy services, any profession like a doctor, lawyer, engineering or technical consultancy. Income from business or profession does not include capital gains from shares. However, if there is any profit or loss are arising from intraday trading, the same amounts to income or loss from speculation business.

[rjainv]

Originally Posted by SatJordan

For an Ordinarily Resident Indian, global income is taxable. However, there is an option to claim Foreign Tax Credit (FTC). This includes the taxes paid or withheld (WTH) in the foreign country in respect of the income earned in the respective country. Further, credit can be claimed for the taxes paid in those countries where India has entered into a Double Taxation Avoidance Agreement (DTAA).

Relief of the FTC can be claimed while filing your ITR under Section 90 to 91 - your CA may be able to help you out with this. All you need to do is file Form 67 - online in the portal and disclose the amount of income and taxes paid or WTH thereon in the foreign country. Please note that FTC shall be limited to lower of 1. taxes paid abroad or 2. tax payable on that income in India.

I hope this helps.

I'll just add a note of caution, I have burnt my fingers doing this.
This will always make your ITR go to AO for assessment as they can't automatically verify your claim of FTC and then it will linger around for 2-4 years.
And this becomes arbitrary at discretion of AO.
I got it accepted once, and twice after that got rejected and had to pay double tax with interest penalty as AO reasoned that tax withheld is not same as tax paid unless I have also filed returns in the foreign country.


I say double tax, as there are two choices when declaring foreign income with part tax already withheld.

Let's say your foreign income was Rs 100, and tax withheld was Rs 25.

Let's say your applicable tax rate is 30%.


1. If you want to claim FTC, you'll declare income of Rs100, FTC of Rs 25, and pay additional Rs 5 as balance tax in India. Net in pocket is Rs 70.

2. If you don't want to claim FTC, you will declare Rs75 as foreign income, and pay Rs 22.5 additional tax on it. Net in pocket is Rs 52.5.

However if your FTC claim gets rejected, then you would have to pay Rs 30 additional tax on the declared income of Rs 100. Net you got Rs 45 in pocket.

[arpanjha]

Thanks for the advise and opinions, but one doubt for me still remains unsolved, payments received via money transfer companies such as PayPal and western union do they automatically qualify to be declared as income from foreign sources?

[rjainv]

Originally Posted by arpanjha

Thanks for the advise and opinions, but one doubt for me still remains unsolved, payments received via money transfer companies such as PayPal and western union do they automatically qualify to be declared as income from foreign sources?

1. Any income you had has to be declared.
2. Medium of payment is immaterial. Its the origin which matters (and gets categorised as salary, capital gains, dividend, interest etc...).
3. In particular to DTAA, there is a whole chapter on each country basis that talks about nature of income and applicable law of taxation.

https://www.incometaxindia.gov.in/pa...tion/dtaa.aspx

[arpanjha]

Thanks for this, I found out from the income tax country specific DTAA website, that my income falls for a 10% taxation here in India. Will pass on the same information to my CA and do accordingly.

[roadjourno]

Quiet bizzare incident happened
Yesterday i spent almost 2 hrs to file the ITR and pay the rest of self assessment tax. Everified it as well.

Now today i cannot see the ITR filed yesterday. I didnt even recieve the email. Now i am wondering what to do. Should i wait or refile it again..

Any one faced such problem ? any thoughts, way forward ?

[neelkumar]

Originally Posted by roadjourno

Yesterday i spent almost 2 hrs to file the ITR and pay the rest of self assessment tax. Everified it as well.

Now today i cannot see the ITR filed yesterday. I didnt even recieve the email.

I've filed mine on 9th Aug and it happened to me as well. No email/SMS, like I never filed it. But then after a day/two that ITR appeared on my dashboard and the history as well.

Strangely, one of my friend filed it in July and even he wasn't able to see his ITR on Aug 9th. And it came back for him at the same time when mine was displayed.

So, just wait for a day or two and then file a complaint if you still don't see it. I hope you downloaded acknowledgement and the soft copy, just in case.

[bluevolt]

I filed my return in way back in July first week while some of my colleagues filed in Sep first week and their ITR got processed and refund was issues as well! Whereas I am still waiting and my ITR still stuck in ITR e-verified.

Don't they follow first come first serve i.e. first filed first refund policy?

[whitewing]

Originally Posted by roadjourno

Quiet bizzare incident happened
Yesterday i spent almost 2 hrs to file the ITR and pay the rest of self assessment tax. Everified it as well.

Didn't you even get an SMS notification? Because on everification we get an SMS almost immediately.
Since there is some more time before the last date for filing, suggest you raise a grievance in the portal and give it a week or so.
Post that if you still haven't received any notification (mail/sms/portal) I assume you can resubmit.

[pramods]

Don't worry, the data is already in Income Tax system, seems like they are processing and updating the system in batch mode. If you try to refile, it will error out with message you have already filed the ITR.
I tried to refile and then connected with ITR and they said it will shown up and not to worry, which happened after 2 days and you will also receive email and SMS notification of that

Originally Posted by roadjourno

...

Now today i cannot see the ITR filed yesterday. I didnt even recieve the email. Now i am wondering what to do. Should i wait or refile it again..

Any one faced such problem ? any thoughts, way forward ?