RE:TDS on interest earned from FDRs
by Agarwal Singhania & Co. on Apr 28, 2007 11:02 AM
Yes in this year Budget the limit is proposed to increase to Rs. 10,000/-
is it necessary to file certificate on not deducting tax at source from payment to employee whereas payment exceed one lac and employee declare his tax saving to the extant his taxable income become one lacs. if it is than in which form?
RE:TDS ON SALARY
by Agarwal Singhania & Co. on Apr 28, 2007 11:03 AM
Ur employer shall give you Salary Certificate in Form No. 16 eventhough no TDS has been deducted from ur income and u have to file this certificate along with ur Return.
RE:FB
by Amitabh on Apr 27, 2007 10:15 PM
FBT or Fringe Benefits Tax is a tax payable by the employer on certain perquisites or fringe benefits provided to emplyees.It is to be paid even if the emplyer does not have taxable income.Some of the benefits that come under this tax are free or concessional tickets provided to the emplyees or their family members for private journeys,contribution to approved superannuation fund,use of health club,gifts,scholarship,entertainment expenses,telephone provided to emplyees,etc.For these purquisites,the emplyee does not have to pay any income tax.For different perquisites,different percentages have been specified for computation of fringe benefits.Once the fringe benefits are computed,tax thereon is levied at the rate of 30 per cent plus surcharge and cess.The emplyees benefit by FBT in the sense that they do not have to pay tax on such benefits.It is the employer who pays.For more details,pl refer to Sec 115W,115WB and 115WC of income Tax act 1961
Hi Amitabh, Your knowledge about tax issues is enviable, and I really appreciate your professional way of answering. My question is, I would like to sell a plot which I bought last year. I would like to put the proceedings of the same in my NRO account. I know there is 30% tax on the interest earned, but are there any other tax implications. Please let me know.
RE:For Amitabh
by Amitabh on Apr 27, 2007 10:03 PM
Hello sir,thank you so much for your comments.However,I just try to share whatever little knowledge I have.I would appreciate if someone can add,or even contradict my opinion if required.This will enhance my knowledge on income tax.You already know that interest on NRO account is taxable.Other than this,I am not aware of any other tax implication that you may face,by just putting the sale proceeds of your land in NRO account.As the plot has been purchased only last year,sale thereof will give rise to short term capital gain and it would be taxed as such.There should be no difference if you deposit the proceeds in your NRO account. I would request all not to put my or anyone slse's name in the subject or the question.This is an open forum and anyone can answer the questions or post comments.
RE:For Amitabh
by Sameer Bhagwat on Apr 28, 2007 11:01 AM
I had a 401K plan in the US when I worked there about 10 years ago. I was a green card holder then. The plan is now worth about USD 5K. I gave up my green card about 3 years ago. I want to withdraw the money as I need it not. Do I have to pay any taxes in the US or India.
My plan advisor in US has asked me to give proper documents to allow him Not to withold 30% tax. What documents do I need to give him.
When I bring the money to India, will I have to pay taxes in India?
Suppose a person has/will be staying abroad from Jan 2005 to Oct 2007. Is he NRI? The person do not have any NRI/NRE account and sends his/her savings to his/her parents. Finally the person will return back to India in Oct 2007, which is the best way to Save his/her tax in India.
A. Before comming to India Send all your savings to Parents. Gift is not taxable. B. Since the person has stayed long and is NRI(not sure) so no tax even he/she carry his/her own money.
RE:Amitabh please clarify this
by Amitabh on Apr 27, 2007 12:50 PM
Being resident or non resident is a question that has to be answered in relation to each financial year separately.In simple words,if a person stays for 182 days in a year in India,he is a resident.For furthur details,you may check the provisions of Sec 6 of the Income Tax Act 1961.If he is resident in India,he has to pay tax in India for income accruing or received anywhere in the world.So any gift can be given out of this income only after paying all taxes pertaining to such income,whether in India or abroad.For the period he is non resident,he will not have to pay tax on such income which accrues or is received by him outside India.It makes no difference whether he gifts the income to parents or brings it in India and keeps that money with himself.
RE:Amitabh please clarify this
by Sourav Ganguly on Apr 29, 2007 01:54 PM
Thanks for clarification, just to double check Taking the above case from Jan 2005 to Oct 2007 1. Jan 2005 to Mar 2005, need to pay tax in India since stayed more than 182 days in India from Apr 2004 to Mar 2005. Even the giftedincome is taxable to him, right?? 2. Apr 2005 to Mar 2006, no tax in India since he stayed outside India for the whole financial year right?? 3. Apr 2006 to Mar 2007 no tax, same reason as in point 2. right?? 4. Apr 2007 to end Oct 2007, assuming he will be staying in India from Nov 2007 to Mar 2008 (only 150 - 160 days) so no tax in India right?? Correct me if I am wrong anywhere.
RE:Amitabh please clarify this
by Amitabh on Apr 29, 2007 06:45 PM
Your points are valid.In the first case (point no 1),tax is required to be paid in India for even foreign income.Any gift can be made out of this income after the taxes are paid.The gift will not be taxable in the hands of recepient in case the donor and recepient are relatives as defined in the Income tax Act.In any case,there is no gift income to the donor in your case.It is to the donee (parents of the donor).Parents will not be taxed for the same whether the gift is made out of taxable or non taxable income of the donor.In case,donor's income is taxable,he has to make payment of the taxes or at least make provision for the same before he makes any gift to his parents.
There is so much confusion about Gift tax and "relatives".The simplest thing to do would be to change "relative" to any relative by blood or marriage. If we know the e-mail address of Finance Minister,may be we can write to him for consideration, to eliminate all this confusion
RE:Gift tax confusion
by neel sanghvi on Apr 27, 2007 01:17 AM
heheh. Look Ahmed is relying on government. yeah. you can send an email but who is going to see it? they might see if you convince them that without you they will not be able to win elections.
dera sir iam an nri and from oast 5 years trading . i am having resident demat account and paying tax on capital gain .is it legal ti have a resident demat account by an nri
RE:RE:nri having resident demat account
by ganapathy subramanian on Apr 28, 2007 08:10 AM
hello, As per RBI regulations a NRI cannot have resident trading account. It is against law. I do understand that the Depository is also not allowed to permit an NRI to have a Demat account in Resident status. NRI should be permitetd to make the payments for purchase of shares only from NRO account.
dear sir i am an nri but resident demat account from past 5 years.i am paying income tax arising out of capital gain.is it lagal to have resident demat account for nri. regards
