What is my tax liability?

Question

i was a resident for 2yrs of UK till october 2007.

i have not be earning any money from any sources. My partner who is a britisher supports me an my son though a credit card which is UK issued. i am stuck in India as my passport got damaged and new one hasn't come.

but with the money from my partner i used it to start a company.with ! lakh share capital

The company has not made any money till now. never received any money on the account ever. Also the account of my company was changed coz of name of change in between. but the bank had some problem opening my a/c so it took about 6 months to open the new a/c . all the salaries and the transactions have gone thru my personal a/c as i could not stop the progress.

am i still taxable on the amount that i get from my son;s father from the joint credit card that i hold with him. i have with drawn cash from the card on many occasions and deposited in my a/c as there was no other way to do it.

Do i present the statement of my UK credit card at the time of taxes in India.

Do i have to pay taxes?

Answer 1

nope u don't pay taxes on the money withdrawn from ur joint account. it will be treated as drawings from ur husband's capital account. taxes are paid on the income and not on the cash balance ~ so u can relax and you need not pay any taxes on the amount withdrawn from your joint credit card. you may have to pay taxes on your other source incomes and your co's overall profit during the assessment year. ~ thanks..tc!