Income deemed to accrue or arise in India - residential status ...

Film Distributor Deemed Indian Resident Under DTAA; All Global Income Taxable in India, No US Tax Credit Allowed.

October 5, 2024

Case Laws     Income Tax     AT

Income deemed to accrue or arise in India - residential status of the assessee under the India-USA DTAA. Assessee stayed in India for more than 183 days, considered a resident. Economic relationship, place of business, property administration, earning wages are important factors. Assessee has a private limited company in India involved in film distribution, attended board meetings, has operative bank accounts and mutual fund investments. In USA, assessee derives rental income, has bank accounts and investments, but no active involvement in earning wages or profits. Personal and economic relationships tilt more towards India. Assessee is a resident of India under Article 4(2)(a) of the Indo-US DTAA. All income derived in USA is chargeable to tax in India u/s 5 of the Income Tax Act. No tax credit available as no tax paid in USA. Dividend income, capital gains sourced in USA are taxable in India. Order of lower authorities confirmed, decided against assessee.

View Source