Tax Rules for Residents Living in a Foreign Country

When an individual is residing in Foreign country and earning in dollars but having some of his amount invested in Indian banks in the form of FD’s & RD’s, it will be termed as “Person living in a foreign country”.

Tax Rules for Residents living in a Foreign Country

For example - Rahul is living in US from last 3 years and earning in US dollars. He has some of his amount invested in Indian bank accounts in the form of savings and fixed deposits. He bought an apartment and given on a rent to a tenant for Rs. 40000. He gifted a car to his parents and started transferring Rs. 10000 to their parent’s account every month in order to meet the household expenses during a year. He also transferred the amount of Rs. 20000 to his father’s account in order to pay the cost of Insurance policy which he has purchased for his parents.

Rental Income Rs.4,80,000
Less: Standard 30% deduction under Section 24 Rs.144,000
Income from house property Rs.3,36,000
Income from FDs and bank account Rs.30,000
Gross total income Rs.3,66,000
Deduction under Section 80D Rs.30,000 (Claim up to Rs.50000
Taxable income Rs.3,36,000

Rahul’s gift to his father and a transfer of Rs. 10000 every month towards household expenses are exempted from tax. As far as insurance policy amount is concerned, Rahul can claim a deduction under Section 80D for Rs. 25000 as his father is a senior citizen. Hence, he has to file income tax return in India as his income is more than Rs.250000.

MEET US

What Clients Say

Customer delight is our main goal and we are very serious about it.


Prakash Verma

Prakash Verma

“Finacbooks.com is a perfect example of a great customer service dealing with the best of accountancy services.“

Prakash Verma Signature


Praveen Chauhan

Praveen Chauhan

“They offered us good quality services in a least possible time at a best Price.“

Praveen Chauhan Signature


Pradeep Kochhar

Pradeep Kochhar

“Finacbooks.com is a trusted network of highly qualified accounting professionals who not only provided us quality accountancy services but also supported us by answering our each & every query on time without any delay. “

Pradeep Kochhar Signature

Informational, useful and resourceful

Blogs

Catch up our trending topics, news etc. in a simple, detailed and most professional way.

How to register your own company in India from USA?
26 Aug, 2021

With the advent of globalisation, connectivity worldwide has become the sole propeller for international co-operation and belongingness.... Read More

E-Way bill generation process through E-way bill portal
20 Aug, 2021

The e-way bill system was introduced under the GST process, where a bill is required before transporting goods that have a net value of... Read More

Basic legal aspects of Start-ups in India- Every entrepreneur should know
12 Aug, 2021

STARTUPS have been an important driver of our country’s gross domestic product (GDP). It not only helps in economic growth but... Read More

Due Dates

  • GSTR-7 Summary of Tax Deducted at Source (TDS) and deposited under GST laws

    Sep 10th ,2021
  • GSTR-8 Summary of Tax Collected at Source (TCS) by e-commerce operators under GST laws

    Sep 10th ,2021
  • GSTR 1 for Aug 2021 (turnover more than INR. 1.50 Crore)

    Sep 11th ,2021
  • GSTR-6 Details of Input Tax Credit (ITC) received and distributed by an Input Service Distributor (ISD)

    Sep 13th ,2021
  • GSTR-3B is a summary return to be filed by all taxpayers except those registered under the composition scheme, every month. However, from 1st January 2021, there is also quarterly filing option provided to taxpayers with annual aggregate tunrover of up to Rs.5 crore, opting for the QRMP scheme for Aug Month. (Aggregate turnover exceeding Rs.5 crore in the previous financial year)
     

    Sep 20th ,2021
  • GSTR-3B is a summary return to be filed by all taxpayers except those registered under the composition scheme, every month. However, from 1st January 2021, there is also quarterly filing option provided to taxpayers with annual aggregate tunrover of up to Rs.5 crore, not opting for the QRMP scheme for Aug Month. (Aggregate turnover up to Rs.5 crore in the previous financial year)

    Sep 20th ,2021