Hello,
I have foreign income in AY 2012-13 that I want to file taxes for (yes I know I am late by 8 months and will owe 1% penalty per month after July 2013 which I plan to pay).
However, I have transferred the money into India over time... some of it in AY 2012-13 and some of it in AY 2013-14. Some of it is still in foreign account. So, how should I calculate the taxable amount in rupees? If I file taxes based on the date I got the foreign currency, then I would have to use an old exchange rate for the entire amount. Whereas, if I file taxes based on when I moved the money into India then the taxation will be split across 3 different AYs and the marginal rate will be favorable to me. That does not seem right either. So, what is the correct way to report income (in rupees)?
And, what documents do I need to show? Is it sufficient to show my Indian bank statement showing all remittances? I don't have any bills/invoices, etc. And, if I show bank statement, then I would not have all the remittances in the same year as in which the income was earned, so I am confused what the right way is.
It would be easiest for me to report income based on when it comes into my Indian bank account, but is that correct when the income was earned in a different year?
Thanks.
