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tax on income from other countries

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I need your advice on following income received by my client :

My Client is freelancer export professional from Delhi. He has settled 1 deal of Malaysian company who do not have office in India. Buyer and seller both have no relation to India and do not have any office in India also.

My client will get commission in USD direct to Indian bank account from seller compaany on basis of ncnda/icfpa legalise by seller company to Indian professional who deal for Malaysia company.

Can you please guide taxation rules in india for foreign currency commission received by Indian citizen direct to his bank account. My client is non registed to any act in india. For commission receiving should my client has to registed in company or as non register person can also receive commission?



The answer to your question would depend upon your client’s residential status in the year of receipt of such commission. For resident Indian companies and individuals, income earned abroad is taxable. The TDS rate on non-investment income is 10% for Resident individuals and 30% for NRIs.

We suggest you consult an experienced CA with respect to implications of double taxation of such income.



  • Bobby

    I work for an MNC in India. In Jan’15, 100 shares from my parent company in US were vested and 63 shares were paid to my morgan stanley share holding / trading account. Value of 37 shares was held as withholding tax in USD (approx 37% tax). My Indian company showed the value of 100 shares as perquisite in INR in form 16 and is hence included as taxable income in India. Double tax was not deducted as US company paid the amount to Indian company as part of internal transaction. My questions are :
    1. Do I need to show the perquisite value as Foreign income in ITR?
    2. Do I need to show the value of shares vested (63 shares) as Foreign assest in ITR?

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