Ever wondered how foreign income is different from Indian income? Let us find out.
Indian Income
Any of the following three is an Indian income:
i) If income is received (or deemed to be received) in India during the previous year and at the same time it accrues (or arises or is deemed to accrue or arise) in India during the previous year;
ii) If income is received (or deemed to be received) in India during the previous year but it accrues (or arises) outside India during the previous year;
iii) If income is received outside India during the previous year but it accrues (or arises or is deemed to accrue or arise) in India during the previous year;
Foreign income
If the following conditions are satisfied, then such income is foreign income:
i) Income is not received (or not deemed to be received) in India; and
ii) Income does not accrue or arise (or does not deemed to accrue or arise) in India.
The provisions of residential status are tabulated as below:
INCIDENCE OF TAX FOR DIFFERENT TAXPAYERS
Incidence of tax in India for Individuals and Hindu Undivided Family (HUF)
Do you have more queries regarding foreign income and Indian income? Are you looking for Chartered Accountants in Bangalore who deals in such assignments? If yes, then get in touch with us.
