TMI BlogPersons migrating from West/East Pakistan, Burma, East African countries, namely, Mozambique, Zanzibar, Kenya, Tanzania and Uganda - Claims as to origin of money/assets brought into India to be freely admitted up to a limit of Rs. 50,000 subject to certain conditionsX X X X Extracts X X X X X X X X Extracts X X X X ..... siding abroad but intending to return to India and settle here permanently, apprehend that the money brought in or remitted from abroad by such persons might be subjected to income-tax in India. The apprehension appears to be due to lack of information regarding the correct legal position about the taxability of the remittances of money from abroad. The general position, in this regard, is clarified below. 2. Money brought into India by non-residents for investment or other purposes is not liable to Indian income-tax. Therefore, there is no question of a remittance into the country being subjected to income-tax in India . The question of assessment to tax arises only when there is no evidence to show that the amount, in question, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ex I)]. b. 1-1-1963 Zanzibar, Kenya, Tanzania and Uganda [ vide Ministry of Finance Press Note, dated 22-5-1967 (Circular No. 8, dated 22-5-1967 printed as Annex I)]. c. 1-1-1964 East Pakistan and Burma [ vide Ministry of Finance Press Note dated 15-6-1964/22-5-1965 (Circular Nos. 16D, dated 15-6-1964 and 11, dated 22-5-1965 printed as Annex II and Annex III respectively)]. d. 1-10-1965 West Pakistan [ vide Ministry of Finance Press Note, dated 3-2-1969]. 2. He had sufficient resources in the foreign country. 3. He had no source of income either in India or in any foreign country, other than the country from which he migrated, prior to migration and he was no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cash/jewellery alleged to have been brought by them from these countries. In support of the claim that they had sufficient funds in those countries, they might produce before the income-tax authorities in India their bank accounts in those countries as also copies of the assessment orders passed in their cases by the income-tax authorities of those countries. The migrants would also then be required to prove that the amounts brought into India can directly be linked with the funds which they had possessed in those countries. Circular : No. 5 [F. No. 73A/2/69-IT(A-II)], dated 20-2-1969 . ANNEX I - CIRCULAR NO. 8, DATED 22-5-1967 REFERRED TO IN CLARIFICATION 1. It has been represented to the Board that in view of the difficul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s concerned about the sum brought over and the date(s) of its introduction in the books of account within two months of the date of his arrival in India and in the case of persons who have already migrated, by July 31, 1967. The above concession will be subject to an overall ceiling of Rs. 50,000 in respect of all sums brought over from these countries and introduced as such in the account books by the assessee and all his family members taken together. 3. In the following cases, namely : a. where the money claimed to have been brought over exceeds Rs. 50,000; b. where the assessee had some sources of income prior to migration either in India or any other country, other than one from which he has migrated; or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ine migrants should be dealt with in a sympathetic manner and that production of direct/documentary evidence, e.g., transfer through banks, hundies, etc., in support of a claim for transfer of funds from East Pakistan may not be insisted upon in such cases. However, with a view to ensure that these unfortunate persons are not used by tax evaders as their instruments for passing off their concealed income, the Assessing Officers should ensure the satisfaction of the following conditions before accepting a claim of remittance of funds from East Pakistan : (i) that the assessee has migrated to this country after January 1, 1964 and he has had no source of income in India or in any foreign country other than Pakistan prior to his migr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idence in the shape of transfer through bank, hundies, etc., in support of remittance from Burma need not be insisted upon. However, with a view to ensure that unscrupulous persons do not abuse the concessions, the Income-tax Officer should ensure the satisfaction of the following conditions before accepting a claim of remittance from Burma : 1. The assessee has migrated from Burma to India on or after January 1, 1964. 2. The assessee had sufficient resources in Burma to which the remittance could be reasonably attributed. 3. The assessee had no source of income either in India or any foreign country, other than Burma prior to migration and he was not assessed as resident in India either for the assessment year 1963-64 or for the earl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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