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HOME | MONEY | TAX | NRI TAX CENTER |
April 20, 2000
Banking |
The Rediff Money Channel presents everything you wanted to know about tax issues, but didn't know whom to ask. Chartered Accountants from Ganesh Jagadeesh & Co are here to remove all your doubts. Readers' Note: Please keep your questions short. I worked in India for about five years before taking up a assignment in Oman. During this time, I filed form 16A twice and had applied for a PAN. But I was not alloted one since the expansion of my initials was not filled by me. I will be proceeding to Dubai on a fresh employment visa. — Haja Alaudeen Since you are a NRI, you need not file your return of income if you do not have any income other than capital gains and income from securities and if tax on the same have been deducted from them. In the light of this, you do not need to produce documents pertaining to prior 1997 now for the purpose of taking up a new assignment in another country. The copy of your passport may be necessary to prove your NRI status.
I stayed in the UK for a period of one year in 1998 on work permit. I had a bank account in UK, where all my remuneration use to get transferred. I did not transfer the savings to my Indian account while leaving the country then. Presently, I am in UK again on a business visa. — Partha Saha
You can transfer the amount to your Indian account. I have learnt from your site that any allowance given while on a business trip abroad is taxable . Now what I would like to know is if I am getting $65 a day on a business trip abroad, over a month it accumulates to $1,950. If I spend all of it there, do I still have to pay tax of 25 per cent?
— Naga Bhaskar
Residential status of an individual is the key factor in deciding taxability of the income of that individual. From the data provided by you we presume that you are a resident of India. Global income of a resident is taxed in India and hence allowance too being part of salary is taxed.
I am a permanent employee of Nokia, residing in Finland since November 1999 and paying taxes here. — Shrikumar Sharma Residential status of an individual is decided on the basis of his stay in India during the financial year starting April 1 and ending on March 31 of the following year. Hence in your case as you have left India only in November 1999, for the FY 1999-2000 you are a resident Indian. I am of Indian origin but have resided in Dubai since 1973 and now migrated to Canada. I sold my property at Bangalore in February this year ( the property was constructed in 1985). The capital gaiins calculated by my chartered accountant is Rs 3,00,000. I am planning to invest in mutual funds and block it for seven years under section E54B. Or in the new scheme E54C for 5 years. The rest of the money (Rs 1.5 million) is in my NRO account. The banks has said that 30 per cent TDS is applicable. — Vaithainathan
The current year's budget has introduced the new section 54 EC replacing the earlier 54 EA & EB. The implication of this is that investments eligible for claiming exemption from capital gains can be made only in bonds issued by National Highway Authority of India or NABARD.
Interest earned or accrued on amounts deposited in NRO a/cs are not covered under the relief/exemption under section 10 of the Income Tax Act, 1961 and hence they are liable for TDS.
Send in your questions to perfin@rediff.co.in |
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