Bank Interest Income

by Rakesh

In a case where an individual is usually Australian Resident but for the Indian previous year March 2012 ending he is also Indian resident. The interest on Australian bank balance for the period July 2011- June 2012 is received and credited in Australian Bank a/c.

As per Australian tax laws no tax is withheld on bank interest but it’s to be included in the total taxable income in Australia in June 2012 ending.

Now the question is since there is DTA between two countries can an individual include the total interest only in the Australian Taxation return June 2012 ending and not include the bank interest received in Australia in Indian Tax return for the March 12 ending as also the bank interest income is offered for tax in the year ending June 2012 ??.

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