Income tax on foreign funds

POSTED BY Invest ON April 12, 2013 7:29 am COMMENTS (5)


Quick questions, need latest info

1) If I understand correctly if money is deposited from other country in your Indian bank savings a/c, no Indian income tax is applicable on it, right? I mean the original inward payment.

1.1) Is there a limit on how much amount it is allowed or how many times such inward payment in one year etc

1.2) any other rule?

This is basically about a home in foreign country, given on the rent and that rent /money is transfered to Indian (in India) bank and tax implications on that.


5 replies on this article “Income tax on foreign funds”

  1. Dear Invest, please keep asking. This forum belongs to all of you.



  2. Invest says:

    Thank you Ashal.

    You are always helpful and have answer to all 🙂

    I really appreciate your answers.

  3. Dear Invest, the rental income from your hous eproperty ‘ll be taxable as per your normal slab rate. Yes there are deductions allowed like property taxes paif to local minucipal bodies in actual, standard deduction at 30% towards the maint. & upkeep of the house.

    Regarding Consultancy related income, as you are living in India, any income earned by you outside India is taxable in India due to your residential status.

    If your relatives are gifting you some amount or if you are already working abroad (not living in India) & remitting your own income, such transactions are free of tax.



  4. Invest says:

    Thank you for the clarification, Anshal.
    Any idea what is the tax rate for such income or is it calculated as personal income and taxed according to the slab?
    If there is a consultancy income from abroad, how is it taxed in india?

    Last but not least, as what type of inward payment from foreign country, it won’t be taxed in India?

  5. Dear invest, as the amount is coming due to Rental income, the same is taxable in india. if you are already paying any Tax on this rental income in the country of income generation & at the same time, there is any Double Taxation Avoidance Agreement between India & that country, you can claim the benefit of already paid tax there upto the extent of tax paid by you in that country.

    Your original understanding is not correct for your case, as it’s not normal remittance of own money from a country to India. You are receiving your income (rental) from abroad.



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