Income earned from outside india is taxable or not?

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  1. Neha Agarwal

    Neha Agarwal Member

    Here assessee is a Moulana, 30yrs old, has been teaching in Tehran University(iran) for last 8 years. His nationality is indian. Actually he went to Iran as a student & on visa it is clearly mentioned as a student but after getting degree he continued & has started teaching in University, for this Govt of Iran pays him tax free salary. I have some points:-
    1) Whatever he is earning in Iran, is taxable in India or not.
    2) If taxable in India, what slab rate should I take ?
    3) Investment which he has made in india for his wife, himself, children like LIC, medical, education is deductibele u/s 80c & 80D or not becoz his income source is out of india.
    There is one more issue.....as below...
    As he is a moulana he gets some charity amount in cash in his personal account in india from indian only not outside person which exceeds Rs 10 Lac in cash in his account. I asked him to stop taking cash directly in his personal account as whole of cash is deemed to be his income then he said, people hardly release charity amount & most of them are unable to give in cheque. I want to know in that case what points should I consider to calculate, amount as charity in cash in his account is not his income. Plz advice me to make tax planning....What should I do to make income tax dept. that cash in his personal account is charity as his not a personal income.....Plz advice me...
     
  2. Karan Batra

    Karan Batra Well-Known Member

    The income would be taxed in India based on his Residential Status. You can ascertain his residential status by referring to this link - http://www.charteredclub.com/residential-status/

    As he has been outside India for more than 8 years, I'm assuming he would not be a resident in India for tax purposes and therefore his income earned outside India wont be taxed here in India.

    I would still advise you to ascertain his residential status based on the criteria mentioned in the above mentioned link.
     
    Neha Agarwal likes this.
  3. Neha Agarwal

    Neha Agarwal Member

    1 more I need to know, approximately per year he used to come India to stay at his residential place with family for 2 to 3 months....If we consider this then residential status would get change or not?
     
    Last edited: Aug 12, 2016
  4. Karan Batra

    Karan Batra Well-Known Member

    If he comes to India only for a period of 2/3 months - then it is highly probable that he would be considered as a Non Resident Indian and his income arising outside India wont be taxable in India.

    I would still advise you to kindly check by following the criteria mentioned in this link - http://www.charteredclub.com/residential-status/
     
    Neha Agarwal likes this.
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