Business in adult daughter's name when she is studying

[Neeloy Kumar Bakshi]

Sir / Madam,

(1) Can i start a business in my adult daughter's name while she is still completing her studies abroad.If yes ,then i will have to file Income Tax  Return in her name?

(2) In case the answer to the above question is yes, then if she start's earning an income abroad then can i continue the business activity in her name & continue to file her IT return? Also the income that she earn's abroad will surely be tax deducted in the country where she will be working.Will this income earned abroad ,need to be mentioned while filing her IT Return & How will it be treated?

[CAGOPALJI AGRAWAL]

She can start business in India.

Till she is non resident as per  Income Tax Act, section 6 her foreign income accrued and recd outside India would not be taxable in India not it is required to be disclosed in return in  India.

[Neeloy Kumar Bakshi]

Sir,

     Can i or my wife gift a part of an existing business to my daughter? If yes what is the procedure? If no can my daughter purchase a part of our business with her income earned abroad? If yes what is the procedure? Regards.

[DR.MARIAPPAN GOVINDARAJAN]

In this regard a detailed discussion is required for which you have to consult an expert in Income Tax Act.

[Ganeshan Kalyani]

I guess by this time the queriest would have got his answer.

AI Summary

Non-resident taxation: foreign income earned and received abroad is generally not taxable or reportable in India. An adult may have a business in her name; if she is a non-resident under section 6, foreign income that accrues and is received outside India is not taxable in India and need not be disclosed in an Indian return. Transfers of family business interest by gift or sale from parents to the daughter require detailed, case-specific tax advice.