International taxation from India to Sweden

You need to file tax return in India for income earned in India if the amount exceeds Rs. 2.5 lakh even if you are an NRI.

You need to show the income earned in India in Indian income tax return and rest world income is not required to be shown in India.

Such personal loan would anyways be not available in India so may be you can take its benefit in sweden if you get some exemption.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Hello,

1. Since you have moved to Sweden for employment from May 2, 2019, you would be regarded as a Non-Resident in India. And you would be required to file an income tax return in India if your gross total income from 1-month Salary, Rent income plus interest income is more than Rs. 2,50,000 for F.Y. 2019-20. 

2. Advisable to file the income tax return for f.Y. 2019-20 in India.

I don't think that filing the income tax return for income earned in India would take the interest exemption away. However, you should confirm the same from someone practicing in Sweden based Income Tax.

I hope that this answer satisfies your requirements. 

Regards,

CA Hunny Badlani

Hi,

1.Yes, you will have to file tax in India as a non resident for India specific incomes.

2. Sorry, I am not able to comment in sweden filings. But, in general, most of the countries requires you to file tax return considering global income, if you are resident there. Ofcourse, you will get credit of taxes paid in India.

I am unable to understand what benefit will you get in sweden for personal loan taken. Can you pls elaborate?

You can calculate taxes for India sourced income in ITR as per income tax law and claim interest deduction.

While filing taxes in Sweden, you will have to calculate taxes on global income including rents in India as per tax laws in Sweden. You can claim the deductions as applicable in Sweden. If you have paid any taxes in India, you will get a foreign tax credit while filing taxes in Sweden.

Yes, you need to get the account status updated to NRO asap.

Dear Sir,

Hope you are doing well !!

-Yes, you will have to file ITR in India for income earned in India or accruing in India  Only income earned outside would be non-taxable and you don't need to show the same while filing ITR.

-If your taxable income is below the maximum amount not chargeable to tax in India ( ₹2.5 lakh) and you are not required to file tax returns in India.

We may assist you in ITR filing.

Yes, your understanding is correct.

Advisable to convert such an account to the NRO account soon.

Hi 

as per your information 

it’s best to show all interest in Sweden 

then in India you have rental income , saving bank interest income, FD interest income 

now if your income exceeds 2.5 lakhs then you have to file ITR in india as well 

note : might be on maturity of FD some TDS deducted on your fd 

Yes it can trigger question if amount received is huge and no return is filed.

As you have earned specific income in India, it is your duty to file tax return for financial year 2019-20. You need to declare all the Indian sourced income in your India tax return and offer the Sam to tax. You are not suppose to offer Sweden income to tax in India as you are non-resident for tax purposes. 

 In case, in Sweden, if your Indian income is taxable, you can claim credit for taxes paid in India against that income. You will have to check specific regulations in Sweden about taxability of foreign income. 

 If the amount is a mere remittance form abroad which is not in the nature of income taxable in India, there won’t be any tax consequence  You need to checks whether under FEMA is ther any violation of law.  Only thing is in case, your return is scrutinised and bank statement and credits are questioned, you need to prove that this amount i not taxable in India  and there is no tax evasion