Legal Question in Investment Law in India

I went to Netherland through my company on business Visa. Company was giving me daily expenses (that includes accomodation, fooding and Conveyance). while returning to india i saved 9379 euro. I processed the final settlement through finance department. and they confirmed that you can convert that amount to INR. when convering this amount i got 6 lak 55 thousands.

my question is

Do i pay any income tax for this amount(6 lak 55 thousands)?

if i deposit this amount in my salary account or any other saving account.Should i inform to Income tax on this or bank will fill any declaration for this amount to credited on my account?

While filling return should we mention this amount?


Asked on 5/28/13, 8:11 am

1 Answer from Attorneys
Mukesh Ralhan RALHANS - Immigration & Overseas Affairs Law Group

Dear Client,

Income earned outside India is outside the purview of IT Act. As per RBI regulations, interest earned on NRE, FCNR etc. is also tax exempt. However, the interest earned on your normal savings or other account is taxable in the normal course. In addition, you will need to make a declaration about the source of income if dealing with a bank other than the one where you converted foreign currency into Indian rupees. When you file ITR, you will need to include the interest earned on this deposit if it is not going to NRE, FCNR etc. a/c.

Regards,

MUKESH RALHAN, ADVOCATE

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Answered on 5/28/13, 6:02 pm


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