Q145. Income tax filling by British OCI holder in India

Question: I am a British citizen with OCI. I also have some income in India from investments made in India by some money which i received by selling a property which had been gifted to me. At the moment i have a CA in India who files a tax return for my income from India and i also pay income tax separately in UK. Is this the right arrangement to pay the tax in the respective countries where it is generated from even though I am not living there? Thanks PT

Answer: UK residents are taxed on their worldwide income. Unless you are declaring your Indian income when filling UK taxes you may have a problem. UK and India do have a double taxation avoidance agreement so you would get credit for taxes that you have already paid in India.

Your CA should be able to guide you better in this regard.