If you are Resident in India and have been abroad, it’s likely all the noise about foreign income is causing you a lot of confusion.
Let’s understand today what foreign income is.
- Did you work outside India for some period of time and opened a bank account at such place? (Bank account)
- Hold stocks or stock options, ESOPs, ownership rights, shares, or debentures (by whatever name called) or have investments in a mutual fund, pension fund or even a financial interest in an intellectual property right? (Financial interests or rights)
- Possibly own a property outside India? (Assets)
- Have income from foreign royalties, or earn rent from a property owned outside India, earned capital gains from assets outside India? (Income sources)
If any of the above is true for you – you’ll have to fill schedule FA in your tax return and do the relevant disclosures. Schedule FA has been overhauled and a lot more disclosure has been added.
Now let’s look at the following situations –
- Raghav is resident in India and is a freelancer and has earned some google adsense income which was transferred directly to his savings bank account. Raghav is not sure if this is foreign income and whether he should fill Schedule FA.
- Rashmi is a professor in Delhi University and she was paid for delivering a lecture in a university in Atlanta. Rashmi wants to know if this is considered as foreign income.
- Abhay worked in the US for a few months and earned some salary and later returned to India and is now a resident. Is Abhay’s income considered ‘foreign income’?
Schedule FA is not required to be filed in any of the cases listed above.
Here is a snapshot of Schedule FA.
Don’t let it get the better of you – reach out to us and our CA experts will fill the schedule for you!
Are you unsure about whether Schedule FA applies to you? write to us we’ll help you firstname.lastname@example.org