Income earned from abroad

[Guest]

Dear Sir,

I am a resident Indian running a sole proprietorship firm with a current account. I concentrate in facilitating international trade, goods from Europe to China, and get commissions from my Chinese buyers. Do advise whether I have to pay income tax in India. Again, do also advise if I invest the money here, will I get tax exemptions. Buying land or developing land etc.

[Surender Gupta]

Being a resident Indian, you are liable to Income for the income earned in India as well as abroad.

However, you may get the credit of tax paid, if any, abroad for earning such income as per the provisions of Section 90 or 91 of the Income Tax Act, 1961 as the case may be.

AI Summary

Worldwide income taxation: resident individuals are liable on global earnings; foreign tax credits available under treaty or domestic relief. A resident Indian sole proprietor is liable to tax on income earned in India and abroad; foreign tax paid may be credited under the provisions of Section 90 or 91 of the Income Tax Act, with no further advice given on domestic investment-related tax exemptions.