1. Have you worked abroad during the financial year and earned?
Convert foreign earned income from India into Indian currency - convert your foreign exchange earnings to Indian Rupee by using the telegraphic transfer buying rate (TTBR) on the last day of the month before the monthly payment amount. For example, to convert your December 2020 earnings to income, use the TTBR for the appropriate currency for November 2020 and convert your income into Indian Rupees.
Frequently Asked Questions
But how should this income be included in the income tax return?
If TDS is deducted from your income, you are allowed to take credit for those taxes. For this purpose, reference should be made to the relevant Double Tax Avoidance Agreement (DTAA) for the country in which the revenue is earned. India has entered into DTAAs and several countries. The DTAA ensures that the taxpayer is not taxed twice on the income earned outside the country where you live. Since income can be taxed at its source, that is, at its source and is usually taxable in the country where you live, the DTAA ensures that the taxpayer is not adversely affected. The taxpayer is also allowed to take out the deducted TDS credit.
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