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Recent Sawals |
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1 (Note : Click on the
Question numbers to view the answers) |
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I am having a NRE a/c at your Jamshedpur branch. I have just returned from abroad. Now declaring my Income tax returns of last 5 years. Although I know the Capital as well Interest earned on it is exempted from Income tax for 84 months, But I want exact Clauses, paragraph, & article numbers etc. to quote in Tax return. so I will be highly obliged to get this help from your side.
--- Dr. P. L. Rath
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I am a satisfied NRI A/c holder, recently opened up Demat A/c also for share trading. Me and my wife are living in Dubai. My wife is employed but her nature of work is internet based online work. She is taking work from India, doing it in Dubai and sending it back to India. It is a kind of outsourcing work. Her payment is made in India only and not in Dubai. Now the question is as follows.
1) Is there any legal channel through which this money be claimed as NRI income?
2) Is there any facility to open up a Demat A/c and the money be used for share trading?
3) Her salary cheque is issued after TDS (Tax deducted at source). Will there be additional tax deductions on the accrued interest or on the savings?
4) What will be the effect of PAN number? She does not have one at this moment.
Please clarify the above and help me open up an account on her behalf.
--- Mr Chris
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I am a NRI AND ICICI bank customer having NRE saving bank account for last 4 years. I had worked in India for few years before coming to Sinagpore in 2000. After coming to Singapore I had taken out all the money from my PPF account. Now I want to continue putting money in the PPF account, do I have to open a new account or can use old account. In case of new account can your bank help me to open a PPF account and get things started.
--- Sanju |
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I am an ICICI Bank Account holder working in Infosys.
I need the following information from you at the earliest: -
Currently I'm working in USA for Infosys and I would like to use to your ICICI Money to India option to transfer around $2k to India into my Mother's ICICI Saving's bank account.
So, I would like to know the following:
1. Will I be taxed or charged by any means (not only by ICICI or by Government or by any means) due to this transfer.
2. And will my mother the receiving Account holder, would be charged or taxed because of any other Government rule or tax regulation or for getting a lumpsum amount of money in her account?
3. Can they put it as an FD in your bank?
4. If so, will the amount be taxed or charged for putting into FD?
Please clarify these points at the earliest, without which I wouldn't be able to use your facility.
--- Mr. Vjay, todearvijay@yahoo.co.in
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I am selling a property that I inherited from my Father in 1999. The house was built in the sixty's.
For the purposes of calculating the Capital Gains tax how will the cost of acquisition be worked out assuming the valuation of the property to be 'X' in 1981/2
Will indexation of 'X' be:
1) From 1981/2 to 1999 or
2) From 1999 to 2005 or
3) from 1981/2 to 2005
--- Mr. Aneesh, Aneesh@aol.com
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Recent Jawabs |
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| A.1 |
Interest on NRE account is exempt only as long as the status of NRI is maintained, irrespective of the tenure of the deposit. The interest on NRE is exempt from income tax u/s 10(4ii), which is reproduced hereunder ---
In the case of an individual, any income by way of interest on moneys standing to his credit in a Non-Resident (External) Account in any bank in India in accordance with the Foreign Exchange Regulation Act, 1973 (46 of 1973), and the rules made thereunder:
Provided that such individual is a person resident outside India as defined in clause (q) of section 2 of the said Act or is a person who has been permitted by the Reserve Bank of India to maintain the aforesaid Account.
You will find that the interest becomes taxable from the date of your returning to India permanently.
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| A.2 |
1. The source of income is Indian and therefore, this income cannot be treated as income earned outside India.
2. Yes, she can have a demat account.
3. Additional TDS will depend upon the instrument that she invests the money in. She will have to file returns, unless her income is below the tax threshold of INR 1.35 lakh.
4. PAN is required not only for filing the returns but also for several transactions in India.
For obtaining PAN, she should make an application in Form-49A for allotment of PAN to PAN Service Center, UTI Investor Services Ltd., (UTI-ISL) along with photographs, proof of identity, proof of address and the requisite fees. The PAN application forms are available at UTI-ISL for INR 5 or you may download the Form from (www.pancard.utiisl.co.in/pan/index.shtml).
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| A.3 |
NRIs cannot open new PPF accounts. However, you can continue to invest in your existing PPF account that you had opened before becoming an NRI. If you have not contributed to this account for sometime, you can revive it by making the minimum subscription of INR 500 per year for all the years that you have not subscribed and also by paying a penalty of INR 50 for each year you have not contributed the minimum amount.s
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| A.4 |
1. Transfer by itself does not create any tax-liability. The money transferred is capital in nature earned outside India by an NRI, the question of paying tax thereon does not arise. However, if the transfer is a compensation received in India against some service rendered or some goods exported outside India, the amount becomes chargeable to tax in the hands of the recipient.
If your status for the Financial Year 'April-March' is NRI and if the money earned is an income not arisen out of some nexus with India, either by way of Indian employment or business, the amount is tax-free without any limits.
2. We presume this is a gift to your mother. Since you are a "relative" of your mother's as per the Income Tax Act, there will be no tax incidence on either you or your mother, arising out of the transfer. However, as your mother is a Resident Indian, you will lose repatriability of the amount transferred. In other words, you may not be able to transfer the money out of India.
3. Your mother is free to open Resident Fixed Deposits with the bank from the money transferred. Any interest she earns on such FD will be taxed in her hands as per the provisions of the Income Tax Act.
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| A.5 |
It will be 1999 to 2005.
In the case of gifted or inherited properties, for computing long-term capital gains arising out of the subsequent sale by the inheritor, the cost of the property is the cost incurred by the donor when he originally acquired it. Explanation 'iii' to Sec. 48, defines "indexed cost of acquisition to mean an amount which bears to the cost of acquisition the same proportion as Cost Inflation Index for the year in which the asset is transferred bears to the Cost Inflation Index for the first year in which the asset was held by the assessee or for the year beginning on the 1st day of April, 1981, whichever is later"
This means that in the case of an inherited or gifted property, the cost of acquisition is the cost to the original holder but the date of acquisition should be taken as the date of the inheritance or the gift. However, the character of long or short-term depends upon the date of acquisition of the original holder. In case this original holder has also acquired the property by way of gift or inheritance then it will be the date of very first holder who purchased or constructed the property. |
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