ITR Form for foreign salary income

For an Indian resident that worked in 2 different companies in previous FY (while residing in India), one of which was foreign-based, which ITR form has to be filed and where to report both the salaries?

Foreign income specifics
  • Employment category - not freelancing/consulting work
  • Fixed annual salary paid monthly
  • Zero PAYG tax deducted by employer
  • Income below 50L
  • Salary calculation → 8 hrs * 22 days (hourly rate mentioned in payslip)

Is it ITR-1 since there is no foreign tax deducted or ITR-2 since the foreign salary could be reported under schedule FSI and both the salaries can be reported under Schedule S?

Hello @shereena_jose,

Any individual having any income from outside India can not file ITR 1. Also, as you’ve mentioned foreign salary needs to be reported under Schedule FSI. The total salary i.e. from India as well as foreign salary will be reported under Schedule Salary as well.

Hope this helps!

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Thanks @Bharti_Vasvani for your clarification.

Also, I have a doubt as to whether the ITR-2 form has to be filed only for income > 50L? Some reading indicated that the > 50L criteria does not apply to foreign income. I’d appreciate it if you could verify whether the income range matters when it comes to foreign income.

Thank you.

Hello @shereena_jose,

No, ITR-2 can be filed if Net taxable income is < 50 Lakhs.

Income range does not matter in case of foreign income.

Hope it helps!

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Hi @Bharti_Vasvani,

I would like to have a few more queries addressed regarding ITR-2 filing. Please refer my initial post to view the foreign income specifics.

Schedule FSI related:

  1. For remote work from India, should passport number be provided for TIN (though work was not exercised from the foreign country)?
  2. Should Tax payable on such income under normal provisions in India be filled after/before the rebate u/s 87A is applied?
  3. For Relevant article of DTAA if relief claimed u/s 90 or 90A, is it Article 15 of DTAA u/s 90 for Australia, when it comes to salary income? Must this be filled ONLY IF relief is claimed?

    Source: https://www.incometaxindia.gov.in/Pages/international-taxation/dtaa.aspx
  4. Must Form 67 be filed even if no foreign tax credit is claimed?

General:

  1. Is Professional Tax [section 16 (iii)] payable on foreign income? Also, is PF contribution compulsory on foreign income?
  2. Should Schedule FA (G) be filled as a condition reads ‘income from any source outside India’?
  3. Is there any form like AIS or 26AS which shows the actual foreign income credited? When there is a discrepancy between the salary shown in the payslip and that which is credited to the bank account (decimal round off made), the latter is the actual salary to be reported right?
  4. Does Australia’s FY i.e. Jul 1 to Jun 30 have any effect on how foreign income is reported in the ITR?

Thank you!

Hi @shereena_jose, the taxability of foreign assets differs from country to country based on India’s DTAA agreement. If you can share your contact information on this link, so that someone from our team can get in touch with you to help you understand the plan, process, pricing and discount.

Thanks @Yash_Kaviya for your reply.

I do not own any foreign assets, only that I earned a salary income from Australia while working remotely from India. My question was whether this income should be reported under Schedule FA (G) as well.

As I would be filing the return myself as usual, if any query could be addressed, that would be great!

Thank you.