British-Indian Nationals and UK Tax on Indian Income

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British-Indian Nationals and UK Tax on Indian Income

Postby Jumpingjack » Sun 07 Mar 2010 17:06

With the release of new Tax rules, UK nationals who have Income in India are supposed to pay tax in the UK.

My Accountant tells me , even if I do not bring the Income to UK, I have to declare and pay tax in UK depending on how much has been paid at India. I am a high-end tax payer in UK. I have already paid tax on the Indian Income in India as per Indian Income-tax rules, which as per Indian rules amounts to 27%. Because I am a tax payer at 42% in UK, I am being asked to pay the 15% difference tax on the Indian income in UK.

Is this correct advise ? Any help to clarify will be appreciated.

Dr MKL
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Postby gozomark » Tue 09 Mar 2010 21:03

Are you resident in the UK ?
Are you domiciled in the UK or India ?
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Postby Jumpingjack » Wed 10 Mar 2010 19:28

I am domiciled in the UK. I am now resident in UK for 14 yrs and british nation since 3 years.
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Postby gozomark » Thu 11 Mar 2010 08:50

In that case I'm not sure which new tax rules you mean, but if you are domiciled and resident in the UK, you've always needed to declare overseas income to the UK authorities, whether you bring it into the UK or not.
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Postby Jumpingjack » Sun 14 Mar 2010 22:27

Well I have declared my overseas income., But do I have to pay tax in the UK after having paid tax in India for income not brought into UK ?
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Postby gozomark » Sun 14 Mar 2010 22:32

yes, but you maybe able to offset the tax paid in India if there is a double taxation agreement between India and the UK, which there appears to be given the advice from your accountant.

Based on what you've told us, your accountant is correct.
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