Rakesh Dubey (Advocate High Court Calcutta) 18 May 2010

income tax

upto year 1995 the assessee was in employemnt in foreign country, at that time he made the fixed deposit in foreign country in foreign currency and thereafter he return to india and become the resident in india and assessed to indian income tax, in the year 2007 he brought his maturity amount to india and converted into indian rupees, the income tax department says that interest earn in foriegn coundry is taxable in india since the assessee is resident. and income tax rejected the plea of assessee u/s 115H and others provisions of Income tax Act, they saying that it was taxable income

now what will be the legal reamdy for above

with regards

rakesh

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2 Replies

A V Vishal (Advocate) 18 May 2010

There are certain DTAA under which the assessee can claim benefits/exemption of tax. Your query is silent on the country where your client held deposits

Vineet (Director) 19 May 2010

All global incomes of resident Indian are taxable in India. So the income earned on deposits made in foreign country after becoming resident are to be included in taxable income of the relevant year. Section 115H is not applicable in facts of your case as the same applies to investment made in India by non-residents and taxability of income from the same after such person becomes non resident in India. As far as case of your client is concerned, there is nothing much he can do now as the entire investment abroad including accretion thereto has been brought in India in 2007, there is nothing much he can do now as the time for filing revised return has also expired for AY 2008-09. So wait for reopening of cases or get them reopened by filing revised returns and don't forget to claim DTA relief for any tax paid in foreign country on such income.