Banking
Cards
General
Insurance
Lifestyle
Loans
NRI
Real Estate
Taxation
Travel

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 have been deployed in the Philippines since September 1999. Now for the financial year 1999-2000, my total stay outside India exceeds 182 days. If I visit my family in India during my stay outside India, are those days are considered as stay in India when calculating total number of days' stay in India in one financial year?
Does Indian government have any double taxation avoidance treaty with the Philippines.
You have mentioned that the income earned abroad can be kept in foreign banks if the stay outside India is at least one year CONTINUOUS. Now if I am visiting my family/relatives in between on vacation but still employed abroad. Am I entitled for it?

— Komal Kumar Jain

Section 6(1) of the Income Tax Act, 1961, states that when a citizen of India or a person of Indian origin, being outside India, comes on a visit to India in any previous year, he can stay in India for a maximum period of 182 days without losing his NRI status.
The Indian government has double taxation avoidance treaty with the Philippines w.e.f. 21st March, 1994.
The requirement of a minimum continuous stay of one year abroad for maintaining accounts in foreign currencies abroad is applicable to "residents in India" (RII) and not "persons resident outside India" (PROI) and hence as you are an PROI this clause is not applicable to you. The definitions of RII and PROI are defined under FERA, 1973.

I have been an NRI for the past 25 years and a Canadian citizen now. I sold my old house in India for Rs 1.8 million. After blocking the capital gains of Rs 300,000 in 54EB, the remaining money is in fixed deposits in NRO account in Banks. They deduct 30 per cent tax at source on the interest. Can I file tax returns and get the TDS refunded? I do not have any other income in India. I do have PAN and was submitting returns as I was renting this house prior to selling and getting income in India.

— S S Gopalan

Yes you may file IT returns and get the TDS amount refunded if your total income does not exceed Rs 50,000 (i.e. maximum non-taxable limit). As an alternative you may adopt the following two possible course of action.

• Make an application in Form 13 to the assessing officer and obtain a certificate in Form 15AA authorising the payer to deduct tax at lower rates or deduct no tax at all
  
• Furnish a declaration in writing in duplicate in Form 15H (verified in the prescribed manner) to the payer of such income to the effect that the tax on his total income will be NIL.

I am a NRI Living in US. I would like to invest in Indian IPO's. I have not given a Power of Attorney to any one. Can my father Invest in IPO's through my NRE account in my name?

— Baskar

Yes your father can invest in IPOs in his capacity as POA holder for you. You have to get the general POA notarised and attach a copy of the same with the application form.

Our Indian based software company, who sends personnel abroad on three-months to two-year assignments has clearly advised us not to bring back any forex to India. Of the daily allowance we get, we are not supposed to save any money and are told to spend all money abroad, even if one gets the satus of NRI by virtue of staying abroad for more than 181 days. How correct is this?

— Ramakrishna Seelam

Going by our interpretation of the provisions of I.T. Act, 1961 in this regard reproduced on many earlier occasions, you would have observed that, the allowance received is taxable in the hands of the employees, if it is received by virtue of a contract of employment in India.

Send in your questions to perfin@rediff.co.in

Tell us what you think of this advice