Tax Rules on Foreign Income: How much tax will have to be paid on money coming from abroad? Learn the Income Tax Department’s rules.

Foreign Remittance Tax India: If your relatives send money to your bank account from abroad, will they be taxed or not? If you’re looking for the answer, let us explain…

NRI Gift Money Tax Rules: If your relative, husband, or father sends money to your bank account from abroad, is that money taxable ? This question often comes to mind, but few know the answer. If you’re also searching for the answer, let us explain whether money coming into India from abroad is taxable.

Money comes from abroad in two ways. The first is that you have a business and its money is coming into your account . The second is that a relative of yours works abroad and sends money from there. The income tax rules are different for both methods.

When is tax levied?

If the money you receive from abroad is in exchange for services or work (such as freelancing, business, etc.), it is considered income and taxable. This tax will be levied according to the Income Tax Department’s regulations. If you fail to pay taxes on this income, the Income Tax Department may issue a notice and impose a penalty.

Note: If a non-relative sends you more than ₹50,000 to India, it will not count as a gift. You will have to pay tax on the amount.

Meanwhile, if a relative from Dubai or any other country sends you money, it’s in the form of a gift. The Income Tax Department doesn’t tax gift money. So, if your relative sends you ₹5 lakh from abroad, the entire amount is yours. No tax is payable on it. However, if you invest that money here and earn a return, you’ll have to pay tax on it.

The post Tax Rules on Foreign Income: How much tax will have to be paid on money coming from abroad? Learn the Income Tax Department’s rules. first appeared on informalnewz.

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