| Question And Answer | |
|---|---|
| Subject: | Section 90(3). Rent income for immovable property situate in UK |
| Category: | Income-Tax |
| Querist: | Moti |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | income from house property, Rental income from U.K .Property, taxable in India |
| Date: | July 25, 2021 |
– An Individual is tax resident in India, holding British Passport has been filing returns in India since past several years.He has immovable residential Property in UK which is let out.
He is paying tax in UK on rent income .He has not offered rent income in India returns in the past.
Is he required to declare rent income in India tax return?
He is of the opinion that rent income is not taxable in India because immovable property is situated in U.K.
Please give your views. Also any other suggestion.
Please cite case laws if any , supporting or against his opinion.
Firstly, Citizenship is not a test of residency.
Secondly, considering the fact that he has been in India for the past several years, it is assumed that he is an Indian Resident as per section 6 of the Income-tax Act, 1961.
Therefore, his global income will be taxable in India. He should disclose his foreign assets and offer the same for tax in India. Further, he shall be entitled to credit for the foreign taxes paid by him in the UK.