Question 1

Who needs to report foreign income in India?

Accepted Answer

Resident individuals earning income abroad or holding foreign assets must report it in their ITR.

Question 2

What is Schedule FA?

Accepted Answer

Schedule FA is a section in the Income Tax Return used to disclose foreign assets and financial interests.

Question 3

What happens if foreign income is not reported?

Accepted Answer

Non-disclosure can lead to heavy penalties and action under applicable tax laws.

Question 4

Can I claim tax paid abroad?

Accepted Answer

Yes, you can claim Foreign Tax Credit (FTC) to avoid double taxation, subject to conditions.

Question 5

Is foreign income always taxable in India?

Accepted Answer

It depends on your residential status, but generally, residents are taxed on global income.

Question 6

What is international taxation?

Accepted Answer

It refers to taxation of income across different countries.

Question 7

What is DTAA?

Accepted Answer

Double Taxation Avoidance Agreement prevents income from being taxed twice.

Question 8

Who needs international tax services?

Accepted Answer

NRIs, businesses with foreign transactions, and global investors.

Question 9

Is foreign income taxable in India?

Accepted Answer

Yes, depending on residential status and applicable laws.

Question 10

What is transfer pricing?

Accepted Answer

It refers to pricing of transactions between related entities across borders.

International Tax & Cross-Border

Foreign Income Reporting