Question regarding Income Tax on profits made overseas

Guest (Querist) 05 May 2010 This query is : Resolved
I am Indian citizen, permanently residing in India. Suppose I transfer Rs x(income tax already paid) to my stock brokerage account with a broker in USA/UK. Thereafter staying in India itself, I do online trading over internet using the USA/UK brokerage account and make profit of Rs y, thus Rs x grows to Rs x+y.
Question: Am I supposed to pay income tax on my profit Rs y for the concerned financial year? Or I can wait another financial year and let Rs x+y to grow to Rs x+y+z and pay income tax on Rs y+z when I bring back Rs x+y+z back into India?

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AMIT BAJAJ ADVOCATE (Expert) 05 May 2010
You should pay tax on profit Y in the assessment year relevent to financial year in which it arises and acrues to you. Moreover If u want to pay tax collectively on Y+Z in one year it will result in more tax. If u pay tax as and when it accrues in the concerned A.Ys then you will get the basic exemption limit in each year to claim from the profits of each year.

soumitra basu (Expert) 06 May 2010
I agree with Mr. Bajaj

Vineet (Expert) 06 May 2010
As a resident Indian you do not have any other option but to pay tax on your global income in the relevant year itself. There is no provision to postpon tax liability on Y if the same has actually arisen or accrued to you and not the notional income.