Income earned from abroad

[Asked by 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.

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.