Take the 2-minute tour ×
Personal Finance & Money Stack Exchange is a question and answer site for people who want to be financially literate. It's 100% free, no registration required.

I plan to have a consultancy business outside India. I do not plan to remit my income to India immediately. I would do it later maybe after 2 or 3 years. Do I need to pay taxes now? or can I pay tax when I bring the money into the country?

share|improve this question
add comment

2 Answers

If the work is done in India, then the income arising out of it, is taxable when received by you, and not when it come into India ...

share|improve this answer
1  
And if the work is done elsewhere - the income is taxed at that elsewhere, unless a treaty says otherwise. –  littleadv Oct 29 '12 at 17:30
add comment

Three points for you to keep in mind.

1. In the very first year, you should have 182 days outside India. So that in the year when you start your consultancy, you will not have any liability to pay tax on earning abroad.

2. Although you may be starting a consultancy abroad, if you do any services in India, there will be withholding tax depending on the country in which you have started the consultancy business.

3. Whatever money you repatriate is not taxable in India. However, if you you repatriate the money as gift to anyone who is not a relative, will be taxed in his/her hand.

share|improve this answer
1  
Again, I removed your advertising link. Read the section about self-promotion, and understand that what you're doing isn't acceptable here. –  John Bensin Aug 22 '13 at 3:17
add comment

Your Answer

 
discard

By posting your answer, you agree to the privacy policy and terms of service.

Not the answer you're looking for? Browse other questions tagged or ask your own question.