Talk:Income tax in India for Individuals
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- Income Tax return form 1 (ITR-1) is for Salaried individuals.
- You can now file your tax return from eDeskOnline.
- eDeskOnline automatically calculates and pre-fills the tax return form for the current assessment year.
- You can also check and modify the pre-filled values if required.
- Then you can download your tax form in pdf format and take a print and file your return.
- You can just go and submit it to the nearby tax filing center.
Previous discussion page
There is also 2% Education cess payable on the tax payable which is not mentioned in the tax slab rates section
Sample Computation of Total Income as per A.Y. 2008 - 2009.
.Post Office R.D. scheme Rs. 500 x 12 = 6,000 2 Post office recurring deposit scheme Rs 2000 pm x 12 = 24,000 comment : I think deduction is not allowed for R D Scheme of Post Office
Question:tax benefits
I want to take a personal loan for my sisters marriage. Can it be calculated for any tax benefits? Ranjita Panigrahi (via mail)
ANSWER N O (reply sent-070727)
Q: agriculture land
I have purchased a agriculture land in the year 1971 which was out of Municipal Limits that time.But recently I have sold some part of the land and now it falls in municipal Limits.I want to know about the long term capital gain.I also want to know that the amount for which i have sold the land, should be invested in NABARD Capital gain Bonds or is there any other option. Also Sir, Please advise me the amount can also be used for anyother purpose before investing in Bonds for upto 6 months.Please clarify me as I know that the amount should be invested in Nabard Capital Bonds with in the six months of the sale of land. Anil Goel (via mail)
ANSWER YOU MUST KNOW THE STATUS OF YOUR LAND. HAVE YOU GOT IT CONVERTED TO NON AGRICULTURE. IF NOT THEN THE CURRENT STATUS IS AGRICULTURE LAND AND THE CAPITAL GAIN ON AGRICULTURAL LAND IS EXEMPTED. IF YOU WANT TO INVEST THE PROCEED THEN THE MAXIMUM LIMIT IS 50 LAKHS IN NABARD OR ANY OTHER BONDS AS PER THE SCHEME BROUGHT BY THE GOVERNMENT IN THIS RESPECT FOR 54EC. FOR 6 MONTHS YOU CAN INVEST IN GOOD SHARES AND MAKE MONEY OR KEEP IN FIXED DEPOSIT.ssunderagarwal@sify.com (reply sent-070719)
Is savings bank a/c taxable?
I would be thankful if you pl. guide me on the following: 1. Whether intt. earned in savings bank a/c is also taxable? 2. I purchased a house in Aug.05. Now I want to sell it and buy a bigger house. What are the tax implications? and 3. I have a d'mt a/c and stt is paid on every transaction(delivery based). Do i still have to pay tax on profit? Regards. vijay60658@indiatimes.com (via mail)
AMSWER 1. YES 2. NOTHING IF YOU HAVE RETAINED THE OLD HOUSE FOR MORE THAN 36 MONTHS (RETAIN IT FOR 36 MONTHS), THE CAPITAL GAINS ARISING OUT OF THE SALE OF OLD HOUSE SHALL BE DEEMED TO HAVE BEEN INVESTED BY YOU IN PURCHASING A NEW RESIDENTIAL HOUSE SHALL BE TOTALLY EXEMPTED. IF YOU SALE BEFORE 36 MONTHS IT WILL BE TAXED AS REGULAR INCOME. 3. NO ssunderagarwal@sify.com (reply sent)
Bold text===Question:I am working in office in Delhi=== and would like to know that we are having offices in Delhi and Mumbai and our PAN No.and TAN for both the offices are same . During the Financial year 2006-07 some of the employees transferred from Our Mumbai office in the month of August-2006,September-2006 and Mumbai office have deducted and deposited the Income Tax for their period and file the quarterly return through e-filing and for that period they have issued the form -16 and for the rest of the period during the the financial year Delhi office deduct and deposit the tax of these officials and file the return. Now please let me know that whether our Delhi office can issue one form -16 for 12 months by considering the income and TDS of our Mumbai office on the basis of form -16 issued by them to these officials. Naveen (via mail)
ANSWER
FIRST OF ALL GIVING FORM NO 16 WITHOUT COMPLETION OF SERVICES UP TO MARCH IS WRONG. NOW, FORM NO 16 CAN BE GIVEN BY DELHI OFFICE FOR THE FULL FINANCIAL YEAR IN THAT CASE THE EMPLOYEES WHO GOT FORM NO 16 FROM MUMBAI OFFICE MUST SURRENDER THE ORIGINAL FORM NO. 16 ISSUED TO THEM BY THE MUMBAI OFFICE. ssunderagarwal@sify.com (Individual)
>The form 16 will have to be from the registered office of the company which will include the total yearly salary paid.
Answered by Mr. Kapoor(reply sent)
Question: How he can reduce his tax liabilty
For an individual in 30% income tax bracket earning his income from salary has been issued Form 16.Simultaneously he is pursuing his part time business also, in which he has all expenses and no profit yet. How he can reduce his tax liabilty by clubbing losses tincome from job? S.K.Patel (via mail)
ANSWER AS PER ACT IT IS ALLOWABLE ( reply sent-070716)
Question: Gifts
For an individual married woman, having yearly income ofRs 30000/-(Thirty thousand); which one is better for amount of Rs. 2.5 lakhs-FMP or FD for tenure of six month?Also, this money is received from her father.Is there any legal way to show her this money as gift? Is there any tax implication for this money? S.K.Patel (via mail)
ANSWER
ANYTHING WHICH SUITS YOU. IF HER FATHER IS GIFTING MONEY REALLY THEN HE MUST BE SHOWING IN HIS RETURN IF SO THEN YOU CAN SHOW IT AS EXEMPTED GIFT AND NO TAX IS PAYABLE. (reply sent-070716)
Question: Advise on home loan
My son is presently living in a flat owned by me. I am living separately. He is also constucting a house. I have two querries. If he takes a home loan from me, will he get the tex examption and if yes to what extent? He is planning to take a loan of around 4 lakhs for a period of 4 years on an interest rate of 8 %.Can I give loan to my son and take interes ?If he gives me rent for the premises he is using will he get rebate in incom tax for paying rent ?I am a pensioner. Can he get exemption on both the situations and to what limit.? How the loan should be executed? F.M.(via mail) ANSWER IF YOU CHARGE RENT FROM YOUR SON IT IS PERMITTED AND REBATE IS AVAILABLE TO YOUR SON. AS REGARDS AS YOU ARE NOT A FINANCIAL INSTITUTION OF BANK THE LOAN TAKEN FROM YOU DOES NOT QUALIFY FOR DEDUCTION. ssunderagarwal@sify.com - 9870243410 (reply sent-070716)
Question: Received some amount from NSC, KVP...?
Q: Thank you very much for my following query:-
"I am a salaried person. I have received some amount from the saving account, NSC, Kisan Vikas Patra ....."
IN CONTINUATION:
AS you have indicated "NO income tax is payable but if it is for part of the year your father was holding then for the part year for which no return could be submitted by your father has to be submitted as legal representative under his PAN number"
but my fater has never filed return and doesn't have PAN. What is required on my part?
Moreover, while filing my return, in which head should I write whatever income was generated by me and interest on deposits renewed in my name after my father's death?
Answer
If your father had no taxable income even then you must prepare his statement of assets and liabilities if any and along with your return of income you must inclose the statement. Moreover the interest income after the death of your father has to be shown under the head income from other sources and the money received by you is to be credited to your capital account. If you are still not clear and you are in Mumbai you can get the statements prepared by Mr. Agarwal on payment of professional fees. He can be contacted on 9870243410. You can contact our CA on ssunderagarwal@sify.com
Q: if i have made less than Rs. 10,00,000
..if i have made less than Rs. 10,00,000 by investing in stock exchange and only this is my income from all sources , then , do i have to pay tax?
Answer:
If it is out of your earned income for the year then YES and if it from your accumulated funds on which you have paid tax year after year then NO.
You can contect our CA on ssunderagarwal@sify.com
Question: I run a prop. firm?
Q: I run a prop. firm. here are my queries:
- my wife assists me in my business but is not my employee. Can i pay her consultancy fee and show it as a direct expense for calculation of g. profit?
Answer:
Yes provided your wife is professional qualified and posses degree of a recognised University or College.You can contect our CA on ssunderagarwal@sify.com article=individual
Question: I am having a professional fee income?
I am having income of one lakh per month as a professional fees. can you tell me how much max HRA can be exempted for tax and how much max home loan payment.
sanjay radhesh agrawal(Via mail)
Answer:
hello sanjay agarwal i would like to inform you that you being a prof person can not take the benifit of HRA. however you can take benfit of deduction Under chapter VIA of Income tax Act. there are few conditions whih have to be ful filled for which we would require few informations from your side. My TaxMan team shall contact you via email as soon as possible for the same. we can workout your tax planning accordingly. CA Bhavik Parikh
Question: I have opened a joint demat account?
Q: I opened one demat a/c in the joint names of my wife(first) and me(second)for investment in stock market in June2006.My wife is a housewife and does not have any regular income.For opening of Demat a/c she had applied for PAN No by stating the source of income as share trading and she was allotted the same.But the demat a/c was opened after receiving the PAN.We were also not aware of the difference between investing and trading at that point of time.However she had some money which she received from my father(her father in law) and me in different times(amounting to Rs. 160000 approx. It was invested by her in different phases. During the last FY 06-07 she was able to earn about Rs. 20-22 thousand only. Now my question is- 1.Is it compulsory to file return for her for the FY 06-07 though her income was far below Rs135000. 2.That she obtained PAN by stating her income as from share trading but she did not do it earlier but actually started it later only.Is it a serious problem? 3.She has no fixed principle as short term or long term investor but she never invested in daily trading(margin etc)nor has any intention of doing so.Is it not required to change her source of income from trading to investing? How is it possible now? 4.Should the amounts she received from her father in law and me are to be shown as Gifts as she did not have any regular income to avoid Tax implications? How can that be done? 5.I am a Govt employee and I file my returns regularly. Kaushik Chakraborty (via mail)
ANSWER:
AS REGARDS YOUR WIFE AS YOU HAVE PROCURED pan CARD IT DOES NOT FORCE YOU TO FILE THE RETURN WHEN YOUR INCOME IS BELOW TAXABLE LIMIT AS PAN CARD IS NOT ONLY FOR FILING INCOME TAX RETURNS BUT FOR OTHER PURPOSES ALSO. SO DO NOT WORRY MUCH BUT IF YOU CAN FILE IT IS ALWAYS ON SAFE SIDE.ssunderagarwal@sify.com (reply sent-070611)
Question: We have bought a flat at Rs. 31 lakhs. Rs. 24 lakhs
have been paid by me and rest Rs. 7 Lakhs have been paid by my wife. All the payment have been done thru. cheque thru. respective saving A/C. Both of us r income tax payee. Please tell us if we have to show this and under which column.As per ITR 1 only property purchased os sold at Rs. 30 Lakhs and above have to be shown by a indivisual. Chandera.(via mail)
ANSWER IT DEPENDS ON YOU IF YOU HAVE REGISTERED THE FLAT IN JOINT NAMES THEN YOU NEED NOT SHOW BUT IF YOU HAVE REGISTERED IN YOUR NAME THEN YOU HAVE TO FULFIL THE REQUIREMENT AND SHOW 7 LAKHS AS LOAN FROM YOUR WIFE.
Ques: salaried / LIC _ investment option
Plz tell me whether LIC Is a better investment option? moreover if i get an insurance of 1,00,000 and pay 5000 this year as an instalment then this 5000 will be deducted as such? my net salary is 2,15,000 CPF 1200 p.mnth.
Answer: LIC is a good investment option to secure your future. Premium paid on LIC policy and CPF which i assume to be your cumulated provided fund are deducted u/s. 80C. Your total deduction u/s. 80C amounts to Rs. 19400. Further you have basic exemption of Rs. 135000 as tax free income. So your taxable income is Rs. 60,600. you need to invest more to save tax. --Cabhavikparikh 06:26, 17 May 2007 (UTC)
Ques: I am a salaried women _ saving breakups
I am a salaried woman. My salary is Rs. 40,000 a month please let me know the tax saving breakups in the salary to save my tax. Also please let me know my tax saving investment plan.
Answer:
Total salary 4,80,000 Less: Prof. Tax 2,500 Balance Salary 4,77,500 Basic exemption for woman 1,45,000 Balance Salary 3,32,500 U/s 80C you can invest (maximum) 1,00,000 Balance income on which tax to be paid 2,32,500 You have to give the division of 40,000 per month and against this if the allowances which are fully exempted have been included and the same is to be reduced from the gross salary. The investment where to be made for tax saving depends on you as no details has been given for investment already made or to be made on LIC, Mutual Fund etc. to give suggestions.
Ques: female working in a school
- I am a female working in a school and have received total annual salary of Rs. 1,42,000/=.
- PF deducted is 15,000 and also have saved 70,000 in PPF. No TDS deducted by school as income from school does not fall in taxable bracket.
- I am also a member in a MLM company from which I regularly receive commission. The total commission from MLM company received from April 06 till Feb 07 is 1,28,000/= and TDS deducted by this company is Rs. 7,180 (@5.61%).
- With all above income, saving and TDS paid, my tax liability becomes around Rs 1500.
- Also I have received commission of Rs 14000/=from this MLM company for the month of March 07 (received in April 07) with TDS deducted Rs 785. Now, my net tax liability including cess minus all TDS paid becomes 11,526-7,180-785=Rs. 3,561 (for the assessment year 07-08).
- Kindly guide me how to pay this tax. Which challan should be filled
(for on-line eTax payment). Will it be advance tax or self assessment tax or any other. Do I have to pay any interest also.
- Kindly note that I have a valid PAN. I will receive proper form 16 from school and MLM company also. I will prefer to pay the tax amount through State Bank of India ONLINE tax payment facility.
Answer: Since this relates to the year ended 31st March, 2007, the date of advance tax is over and hence you have to pay the amount by self assessment.Ques: investment in NSS
I have salary income. due to exemptions in the year 1990s, i made investment in NSS. thereafter the deposits in NSS started accumulating with interest. i have not accounted for interest in my IT returns any time. i am under the impression that whenever i withdraw or close the NSS account, i am require to pay income tax on the drawn amount. is my action as per IT provisions or not? if not what compliance is required by me now?
Answer: Since you have not given the breakup of your salary and other allowances it is not possible to give proper reply. You can contect our CA on ssunderagarwal@sify.com by giving full details.Ques: salaried employee / what will be my tax liability?
I'm Certified SAP consultant and salaried female employee with Taxable income Rs. 2,96,000 P.a. I have saved some money under: 1. Post Office recurring deposit scheme Rs. 500 pm 2 Post office recurring deposit scheme Rs 2000 pm 3 Mediclaim policy of LIC whose premium is Rs 3970 pa 4 LIC money plus policy whose premium is Rs. 20000 pa & 5. ICICI smart kid plan whose premium is Rs 16051 pa.
Now i want to know how much will be my deductions and under which section of income tax they will be liable? and finally what will be my tax liability? where to invest more? Name: meenakshi (via mail)
Answer : As you have asked that where should you invest more, I assume that you are planning for the F.Y. 2008-2009. We suggest that you insert your accounts, and plans into eDeskonline. It will compute your taxes.Ques: What will be my tax if I save Rs. 1 lakh
My CTC is 3.5 lakhs. PF deducted per month is Rs.2800. HRA is Rs. 5800 per month. What will be my tax if I save Rs. 1 lakh for this financial year. I am staying in a rented house which is other my home location and will claim Rs. 6000/- per month as HRA.
Answer: Assuming that against 3.5 lakhs, no investment in tax saving device is made and treating that HRA is fully exempted then the approximate tax liability shall be around Rs. 43,178/-. For a more detailed caluculation, you would have to give the breakup of Rs. 3.5 lakhs i.e Basic , D.A. or other allowances which might be tax free.
Ques: writer resident in India.
I am a writer resident in India. I am planning to get my book published in USA through a Publishing house based in USA. The book will be sold all over the world, including USA. I will, of course, be getting an advance on signing a publishing contract with the publisher and subsequently, on sale of book, I will be getting royalty on half-yearly or yearly basis from the publisher. Kindly tell me how I can avoid paying taxes both in India and any other country including USA. --Mangesh(via email)
Answer: As per the Indian Income tax act the royalty brought by you in India or if the royalty is paid to you by a foreign publisher then up to 3 lacs the income is expemted. Income exceeding 3 lacs has to be planned accordingly. For that kindly contact our CA Mr. S. S. Agarwal at ssunderagarwal@sify.com.
q: RFC deposit account maintained by the
This question is related to RFC deposit account maintained by the NRI in India who has returned to India for good. The question is on the interest earned by him from the RFC deposit account. Can you please clarify. -- M.M.Ashraff Ali(Via mail)
Answer: Till your status is NRI the interest income earned by you is totally expempted but as soon as you are resident in India no reduction or deduction shall be available to you.
Q:interest taxable ? Resident Foreign Currency deposit a/c
Whether the interest earned from the Resident Foreign Currency deposit account is taxable ? -- M.M.Ashraff Ali (via mail)
Answer: Have you taken permission from RBI to invest outside India being resident in India? This will decide your taxability. Please provide the information. You can also contact ssunderagarwal@sify.com
q: Tax on remittance of savings
Is an Indian employee's earnings in a foreign company located in a tax free country eligible to Income Tax in India on remittance of savings to India?
Answer: This depends on your residential status. Is it "Resident in India" as per Income Tax Act? If so then you have to pay taxes in India. Otherwise if you are a non resident then only in the country where you are serving. Regarding remittance, rules of RBI shall be applicable.You can contect our CA on ssunderagarwal@sify.com
Question: salaried / tax on my total income
I am a salaried person and i would like have your valubale consultancy with respect to tax on my total income for the previous year 2007-2008. The details are as follows ; 1.i am woking in company from 01.04.2007 and i will work till 30.06.2007.i am drawing 16000 per month + 800 conveyance allowance . 2. The above mentioned salary was paid to me without deduction of TDS and professional tax i.e it is being paid to me in KACHCHA. 3. From 02.07.2007 i am going to join another company on the following salary structure:
Basic Rs. 108000/-
HRA rS. 54000/-
P.F Rs. 12960/-
Gratuity Rs. 5195/-
Superannuation fundRs. 16200/-
Fixed Rs. 196355/- ( Total )
Flixble Benefit Rs. 91645/-
ToTal Rs. 288000/-
variable to be paid at the end of 1 year Rs. 72000/-
Besides this i am also entitled to CITY COMPENSATARY allowance of Rs. 1500/ Per month. I will reside in a rented house at the place of work ,and the rent per month will be Rs. 48000/-per annum./
My investment u/s 80C will be Rs. 13731/-( LIP ) Pls suggest me how to minimise the tax burden .And also show me the calculation of total tax amount for the previous year 2007-2008.
Thanking You. anamul haque(via mail)ANSWER: CALCULATION CAN BE DONE EASILY ON WWW.EDESKONLINE.COM . SIMPLY SIGN UP. YOU CAN AVAIL MAXIMUM BENEFIT AVAILABLE U/S 80C AND REDUCE THE TAX BURDEN AS YOU HAVE SUFFICIENT SCOPE FOR IT. ssunderagarwal@sify.com
---Question: I am in govt. service and started getting HRA?
Q: I am in govt. service and started getting HRA. I am staying in my own house. Kindly clarify following: - (a) Am I entitled to 30% maintenance u/s 24 (b) What is the excemption available, is the full HRA taxable. GS Mehta(via email)
Answer:HRA is Taxable as you own your House and dont pay any rent. No deduction u/s. 24 will be allowed for a self occupied property except interest on housing loan. CA Bhavik Parikh ( reply sent - 070621)
Question: Tuition fees.
I had admitted my child aged 2+ in Shemrock play school on 02.01.2007 with the folowing one-time and monthly fees : 1. Admission fees Rs.3800/- 2. Annual fees Rs.3500/- 3. Monthly fees Rs.1650/- 4. Conveyance fees Rs.300/- per month Kindly confirm while filing return for the year ending 31.03.2007, in which of the above fees/head I could get relief as per section 80C-Tuition fees. Also I have some refund from the previous years which I have still not received. I had received a cheque from income-tax deptt. an year before which I deposited in my bank only to be returned back as i forgot to attach a mandatory slip with it. Till I received the message from the bank of return of cheque the validity of cheque had expired. I would like to know if I could get that refund now ? If yes, how and could it be directly credited into my bank A/c? Thanking you, Yours faithfully, Ashvinder Singh Ghuldu(Via mail)
ANSWER: IT IS COVERED BY PROVISIONS OF SECTION 80 C AND DEDUCTABLE FROM TOTAL INCOME. THE REFUND VOUCHER CAN BE DEPOSITED WITH THE DEPARTMENT WITH A FORWARDING LETTER FOR RE-ISSUE, YOU WILL GET IT. ssunderagarwal@sify.com
(reply sent-070710)
Question: salaried / trade shares on intraday
I trade shares on intraday as well as on delivery. What precautions should I take in terms of taxation, auditing, assessments, etc ? I am already paying tax for the salary I get. What does compulsory audit mean by ? Please explain me in detail. --Thanks and Regards Pavan (via mail)
ANSWER The tax is payable on total income. Your income from trading in shares will have to be analysed keeping in view the latest clarification given by the Finance Ministry. Tax audit is to be done for the persons who fall under the definition of sec.44AB . Your case will have to be analiesed before a clear cut view is expressed. You can contact a Chartered Accountant who will go through the facts and guide you. S.S.Kapoor (C.A.) (reply sent-070706)
Question: I Came to live in India after 25 years
..I will ask the same again and try to make it sound more clear. I came to live in India in june 2003 after spending 25 years in Singapore and hold Singapore nationality.I have lived continuosly since june 2003 in India.Regarding my assets can I bring them into the country, any tax liability?Please read this question in continuation to my earliear quarry. What is the stipulated period after which a foreign ntional becomes ordinary resident and does not enjoy NROR status?with the information that I have given,am I NROR still? D.Kumar (via email)(reply sent-070711)
ANSWER:IF YOU ARE FOR 182 DAYS IN INDIA YOUR STATUS AUTOMATICALLY CHANGES. AS YOU HAVE RETURNED BACK TO INDIA IN 2003 AND HAVE NOT GONE BACK, YOUR STATUS IS THAT OF RESIDENT. AS REGARDS BRINGING YOUR INCOME EARNED OUTSIDE INDIA THERE IS NO RESTRICTION AND TAX SHALL BE PAYABLE BY YOU. I THINK YOU MUST HAVE SUBMITTED YOUR I. T. RETURN FOR 31-3-2005, 2005, 2006 IN INDIA AND IN THE BALANCE SHEET YOU MUST HAVE SHOWN YOUR ASSETS OR SUM OF MONEY LYING OUTSIDE INDIA. IF YOU HAVE NOT DONE SO THEN DO IT BY SUBMITTING 2007 RETURN AND BRING THE ASSETS IN INDIA. ssunderagarwal@sify.com
Question: HRA
Q: ..as a salaried person in India, ...I am working and my wife is not, whe is h/wife. Our flat is both on our names. Can I show, I am paying rent to my wife and get relief and show the rent as income to my wife over the year.. ? TIA ankush.avhad(via skype chat)(reply sent070618)
Answer:As you are the co-owner of the flat you can not get relief under HRA or 80GG. you have to stay in a rented property. CA Bhavik Parikh (reply sent-070618)
q: will i have to pay fringe benefit tax?
I have no other employees. if i pay consultancy fees to my wife (or any one else), will i have to pay fringe benefit tax?
Answer:No but if you pay salary you have to. Moreover since yours is a proprietorship firm you are out of the limit.You can contect our CA on ssunderagarwal@sify.com
q: the net profit of my prop. firm be wholly added
will the net profit of my prop. firm be wholly added to my "income from business..." in my personal IT return (or will corporate taxes and surcharge be applicable on it)? Pls. advise.thanks, --nitin (via email)
Answer:Since yours is a proprietorship business the entire income is your business income and tax as applicable to individual shall be charges to you. I have failed to understand what do you mean by corporate tax and surcharge. If your income exceeds 10 lakhs of rupees you have to pay 10% surcharge but cess of 3% has to be paid irrespective of any income. You can contact our CA on ssunderagarwal@sify.com
Question: I am a writer resident in India?
Q: I am a writer resident in India. I am planning to get my book published in USA through a Publishing house based in USA. The book will be sold all over the world, including USA. I will, of course, be getting an advance on signing a publishing contract with the publisher and subsequently, on sale of book, I will be getting royalty on half-yearly or yearly basis from the publisher. Kindly tell me how I can avoid paying taxes both in India and any other country including USA. --Mangesh(via email)
Answer:As per the Indian Income tax act the royalty brought by you in India or if the royalty is paid to you by a foreign publisher then up to 3 lacs the income is expemted. Income exceeding 3 lacs has to be planned accordingly. For that kindly contact our CA Mr. S. S. Agarwal at ssunderagarwal@sify.com (Reply sent-070716)
Answered questions on foreign tax
To leave a question for The Talking Taxman: send us an email on support@edeskonline.com
I am a foreign national holding POI residing in India since june 2003 after my retirement.Since I wanted to be sure that I can settle in India after more than 25 years overseas I did not transfer all my assets here.Now that I feel reasonably settled I will like to bring my funds which are parked outside.I need your advice on the consequences of such action now and any tax liability.
Danesh Kumar(Via mail)
ANSWER: NO PROBLEM YOU ARE FREE TO BRING YOUR PARKED FUNDS OUTSIDE INDIA WITHOUT PAYMENT OF TAX PROVIDED YOUR STATUS REMAINS NRI OR POI AND YOU UNDERGO ALL FORMALITIES OF RBI. ssunderagarwal@sify.com
Answered questions on Tax saving
To leave a question for The Talking Taxman: send us an email on support@edeskonline.com
My son is to join a proprietory firm on consolidated salary of Rs. 20000/PM. Please advise the prefered salary structure for tax benefits. Basic, HRA , other tax free perks Thanks! --Raj Kumar (via email)
Answer: Let his basic pay be Rs.6,000, D.A. 6,000, Conveyance Allowance for Office 3,000, HRA 5,000. He has to invest Rs.1,00,000 in L.I.C, N.S.C.,Mutual Fund etc to get deduction u/s 80C. You can contact our CA on ssunderagarwal@sify.com.
An NRI is retuning to India for good. How long he can enjoy the benefits of exemption of Income tax and wealth tax for the amounts held in his NRE and FCNR/RFC accounts?
Answer: Till he is alive as no tax is payable for money brought in INDIA with proper channel. You can contact our CA on ssunderagarwal@sify.com
Hi, I am a writer resident in India. I am planning to get my book published in USA. Kindly tell me how I can avoid paying taxes both in India and USA. --Mangesh. (Via mail)
Answer: You can get your book published anywhere in this world. On publication you do not generate any income. Income is generated only on sale of the book. Are you going to sale the book in USA or the whole world. For that purpose are you going to start your own publication house or you want to publish the same through a publication house. If it is through publication house then you will get royalty only which is to be charged separately. If you can provide the above details we can give you proper reply. You can contact our CA on ssunderagarwal@sify.com
