Investment in Foreign Company

i am planning to invest in a foreign company (private). i am an ordinary resident Indian. how will i be showing this in my income tax return and what guidelines should i follow keeping FEMA in mind. In future when i receive dividends from my investment how will i be showing it in my returns... i am aware that i have to use ITR -4 for this purposes but i am not sure about FEMA and other guidelines... need ur advice.... thanks

asked Oct 26 '13 at 23:04 by lokesh 12


A Resident individual is allowed to make investment upto $75,000 without the prior approval of Reserve Bank of India. You can check RBI Liberalised Remittance Scheme

Dividend income would be taxable in India, it would be added to total income and taxed as per normal slab rates. In case tax is already deducted on such dividend in foreign country, deduction for same can be taken under Double Taxation Avoidance Agreements (DTAA).

answered Oct 27 '13 at 00:53 by Pankaj Batra 5.2k320

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Asked: Oct 26 '13 at 23:04

Seen: 1,212 times

Last updated: Oct 27 '13 at 00:53