I earn all my income from foreign remittances. I have no other source of income. How do I calculate my income tax? What kind of exemptions if any do I get?
2007-03-02 14:31:26 · 3 answers · asked by Morni 1 in Business & Finance ➔ Taxes ➔ India
IF YOU ARE GETTING REMITTANCES FROM SOME OTHER COUNTRY (SAY FROM YOUR CHILDREN WHO LIVE ABROAD) FOR YOUR FAMILY MAINTAINANCE, YOU NEED NOT PAY ANY TAX ON THOSE REMITTANCES. HOWEVER IF YOU INVEST THE MONEY IN ANY WAY AND EARN ANY INCOME, YOU ARE LIABLE FOR THE PAYMENT OF TAX ACCORDINGLY. THAT IS AS PER THE CATEGORY YOU BELONG. INDIVIDUAL/WOMAN/SENIOR CITIZEN AS THE CURRENT TAX LAWS APPLICABLE AFTER GETTING SUITABLE BASIC EXEMPTION OF THAT CATEGORY. IF YOU ARE AN INDIVIDUAL UPTO AN AMOUNT OF RS.1,10,000,
IF YOU ARE A WOMAN UPTO AN AMOUNT OF RS1,45,000/- AND IF A ARE A SENIOR CITIZEN UPTO AN AMOUNT OF RS1,95,000/-.FOR THE FINANCIAL YEAR 2007-08 AS PER THE LATEST BUDGET PRAPOSALS SUBMITTED BY FINANCE MINISTER. THE RULES WILL COME INTO EFFECT FROM 1-4-2007 AFTER THE BUDGET IS ACCEPTED IN THE PARLIAMENT. PREVIOUS YEARS THE BASIC EXEMPTION WAS LOWER.
2007-03-08 04:46:38 · answer #1 · answered by arpita 3 · 1⤊ 0⤋
When income is earned abroad by someone else and remitted to you, there is no tax on you as the income is not earned by you. However, if the money is invested eg in a savings bank account, then the investment income is taxable. If in an NRE or a FCNR account, then interest is not taxable. There are however several tax savings investment opportunities available.
2007-03-08 00:31:33 · answer #2 · answered by sonali_n 2 · 0⤊ 0⤋
no tax in foreign earnings
2007-03-02 22:40:13 · answer #3 · answered by keral 6 · 0⤊ 0⤋