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Income Tax on Foreign Income: Today, India is the first country in the world where most of the money comes from abroad. This means that Indians are at the top in the list of people who send money back to their country after earning money from job or business abroad. In such a situation, if your children, parents or any relative or friend sends you money from abroad, then this news can prove to be useful for you. In fact, such people who send money from abroad can come under the ambit of income tax investigation. CBDT has started investigating such cases where more than Rs 6 lakh has been sent to people from abroad. If you have also received an amount of more than Rs 6 lakh, then let us know what is the whole matter…
This is why investigation is being done
CBDT has started investigating such cases because it wants to know whether any fraud has been committed in sending that amount, for example, tax evasion or any other reason. According to information received by Economic Times, this step has been taken after detection of such cases where foreign money sent to people was not as per their declared income and there were irregularities in TCS also.
According to officials associated with this matter, the board has asked the field formation to start the verification process and investigation of Form 15CC. Form 15CC is mandatory for those receiving money from abroad. After the year 2016, data related to this form is being collected and it will be analyzed.
These people are on the radar
An official said a review was recommended last year. It will soon be made available to field formations. The official said the move will help the government identify cases where foreign funds were sent but the taxpayer did not disclose the same in his filings. The official said the move will prevent tax evasion and ensure that remittances are properly accounted for.
The board will prepare a list of high-risk cases based on examination of data from 2020-21 onwards. It has directed field formations to prepare an SOP for detecting high-risk cases and submit the list of such cases by September 30. The government has set December 31 as the deadline to send the first notice to people with undeclared income.
20 percent TDS on more than Rs 7 lakh
The first question that people are confused about is whether they can get money in the normal account or not. So let us tell them that it is absolutely legal that you can get money from abroad into your account which is being sent by your relatives. This also happens because many people have elderly parents living in India and their children living abroad send money to their Indian accounts.
The government charges 20 percent TDS under LRD on remittances of more than Rs 7 lakh from abroad. However, if this amount is being sent for medical or education purposes then it is exempted. If the person receiving money from abroad certifies through Form 15CC that the amount is not taxable then no further details are required. Officials said the department has detected some cases of possible misuse of this exemption.