I moved to the US in November 2013. For the financial year 2013-14, I paid tax on my Indian salary. I have not shown the details of the salary received in dollars in the US bank account in my return.
Now I have doubts as to whether I should revise the return and pay tax on the US salary? On my return, will the new black money law be applicable to me?
As per the Income Tax Act, 1961, ordinarily resident individuals are taxable in India on their worldwide income.
Based on this, your US income would be taxable in India for 2013-14 if you qualify to be an ordinarily resident of India (that is, had stayed in India for 182 days or more during 2013-14 and more than 729 days during the period 2006-07 to 2012-13).
Since you have not disclosed this in your return filed for the said year, you could revise the return now after examining the benefits available under the India US Double Taxation Avoidance Agreement.
After filing the revised return wherein you report all the overseas income, The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, should not apply to you.
Can you explain the new notification to submit form 15CA for any payment made to a non-resident by any person?
Would that include us paying for purchase of personal commodities? How would this apply if I were to pay using credit card?
Hrishikesan Sampathkumar
As the law stands today, Form 15CA has to be furnished for payments made to non-residents, whether or not they are chargeable to tax.
However, the corresponding rule and Forms 15CA and Form 15CB (certificate from an accountant) have not been revised till date. Hence, till the new forms are notified, one could take a position that a payer would be required to furnish information relating to only those remittances that are chargeable to tax in India in the hands of the non-resident.
Generally, payment for purchase of personal commodities would be exempt from tax. Hence, requirement to furnish Form 15CA would not arise in such cases.
If the transaction becomes chargeable to tax for the non-resident, then the payer would have to report the same using Form 15CA.
The reporting requirement would apply even for payments made using credit cards, wherein the payer would have to independently furnish the remittance information using Form 15CA in the online tax portal.
The writer is Partner, Deloitte, Haskins and Sells LLP. Send your queries to taxtalk@thehindu.co.in.