RE:income tax on salary paid by overseas employer
by Chandra Paul on May 06, 2007 05:40 PM
if you are working in India, you need to pay the tax in india. if you are working overseas you have to pay there, no need to pay in india. once you transfer the money to india, you have to pay tax on the interest earned on transferred money. hope i am not wrong :)
RE:income tax on salary paid by overseas employer
by Amitabh on May 20, 2007 10:33 AM
Very trued but he can take advantage of the tax provisions and claim relief if he has incomes earned and received elsewhere and for which he is also taxed in that country.
Hi, I am a resident Indian and do not qualify for as an NRI (more than 182 days). I work in an an MNC in Singapore and my salary is credited to my Indian Bank account in US Dollars. What is my taxable status when: 1. If my company deducts tax as per Singapore law 2. If no tax is deducted by my company and payment is made as professional service fees
RE:Foreign Currency Income
by Amitabh on May 05, 2007 10:37 AM
If you are resident and ordinarily resident in india,you will be taxed in india for income earned and received anywhere in the world.However,if the income is also taxed in Singapore on your salary or professional fees,you can claim relief in India for the tax paid/deducted at singapore in terms of Double taxation Avoidance Agreement,if any between India and Singapore or if none exists,interms of sec 91 of the income Tax act.This section allows unilateral relief to an Indian resident for the tax on doubly taxed income at the rate at which tax is paid abroad or Indian rate,whichever is lower.
Finance mininsters always keeps telling that the income tax in india is much less when compared to other countries. At the outset it seems like that, but i feel it is not so. For eg. everybody tells the income tax in germany is very high around 42%. But, it is only the highest slab for the income tax payees. There are different classes of income tax payers. Class 1, 2, 3 etc., The public is divided into different classes according to whether the person is individual, whether the spouse is employed, whether they have children, whether the child is handicapped and so on. Hence, the tax is in proportion to on the income of a family and its corresponding expenditure. But, in India it is not so. Single income family with and without children, double income family with and without chidren, everyone is treated equally. In a particular company or department because of this tax imbalance, two people starting their career with same economic background tend to diverge slowly according to their income to expenditure ratio. As such there is economic imbalance in India; people who are rich are becoming richer and richer and people who are poor are becoming poorer and poorer. Why dont income to expenditure ratio be taken into account?????????
RE:balanced income tax
by james on May 06, 2007 04:37 PM
The income tax in Denmark is higher than any country in the world.I pay 52% of my money as tax.Even the tax rate goes upto 70% percentage for very high incomes..
RE:balanced income tax
by chetan shetty on May 06, 2007 04:59 PM
still in most of the countries you get returns in some or the other form at old age...what do we get in Indi ????
RE:[object]
by chetan shetty on May 06, 2007 05:02 PM
in other countries we get free kids schoolings,medical, old age pension etc...in India we only fill our babu's(ministers),OBC,SC,ST guys stomach...when they relax and eat our hard earned monye.....
RE:balanced income tax
by R Saravanan on Jun 24, 2007 05:59 PM
yes india is a country of shortcuts. if the govt cannot catch the bigwigs they will burden the tax loss on all the common people. typically, it is like robbing paul to pay peter.
RE:balanced income tax
by pravin wankhade on May 09, 2007 12:15 PM
What has tobe done with SC,ST and OBC's here my dear ??. Please be Cognizant while writing any comment.
RE:balanced income tax
by Amitabh on May 08, 2007 09:55 AM
Look Snehidhan,it is not mandatory for me to comment on each and everything that people post.I also agree that there are a lot of things going on in this country that should be improved.I try to help people by giving tax advise with whatever little knowledge that I have,that is it.You are commenting as if I am the finance minister and I am drafting the tax laws.Please refrain from giving such comments in future.It smacks of a sick mindset.You are free to comment on my replies,if possible,even contradict,bit you have absolutely no right to say where I should give my comments in the first place.That is my prerogative.
RE:balanced income tax
by snehidhan on May 09, 2007 08:03 PM
hi Amitabh, i am sorry if my query hurt you. infact, my intention was not that. after reading your comments/advice for many of the queries, somehow it became a habit for me to look for your views for almost all the questions. since, i didnt find your opinion on this particular query for quite sometime, i became curious to know what will be ur opinion on this particular query and thats it.
RE:balanced income tax
by Amitabh on May 09, 2007 08:24 PM
It is all right Sir.Actually earlier also somebody had made a sarcastic remark like this that all queries are being answered by Amitabh.That time I had reported abuse and it was considered favourably by the moderator.Let us both forget and forgive each other.
RE:tax for NSC
by Amitabh on May 04, 2007 08:04 PM
Yes,interest from NSC is taxable on accrual basis,even though the full amount is received only on maturity.However,as interest is not actually received yearly so in those years when it is included in the income on accrual basis and not actually received,the same is deemed to be reinvested and is included for deduction under sec 80C within the overall limit of Rs 1 lac.
RE:Rent free Accomodation
by Amitabh on May 04, 2007 08:00 PM
In case the accommodation provided is owned by the company,the taxable value of the perquisite will be 15 % of salary if population of the city is more than 25 lacs,10 % of the salary if population of the city is between 10 and 25 lacs and 7.5 % of the salary if population of the city where accommodation is provided is less than 10 lacs.If any deduction is made towards rent by emplyer,that will be reduced from the value of perquisite.Salary for this purpose is basic salary,DA,all payments received in cash but does not include perquisites and allowances to the extent exempt from tax.This amendment is appliacable from 2005-06 onwards.
RE:Rent free Accomodation
by anurag rastogi on May 07, 2007 02:59 PM
Hello Amitabh,
you you have any goverment documents which proof all these what you have said in your statement,I required all these to show to my comapny. Please send it on "anurag23@rediffmail.com" Thanks anurag
RE:Rent free Accomodation
by Amitabh on May 08, 2007 07:58 AM
This has been spelt out by the Finance Minister when the Finance Bill was passed by the Lok sabha.Wait for sometime,once the Bill is through,you can find the same on www.incometaxindia.gov.in
RE:income tax on vrs amount more than 500000.
by gopal azad on May 03, 2007 09:24 PM
Deccan Herald News Service. The Karnataka High Court declared that the amount received by bank employees under vrs is a COMPENSATION for loss of employment and not a profit in liew of salary as claimed by Income Tax Dept.
RE:income tax on vrs amount more than 500000.
by Amitabh on May 04, 2007 10:27 AM
As far as I think and also as given in the article,the maximum amount exempt from the receipts of VRS cheme is Rs 5,00,000.This is as per the provisions of Sec 10(10C).The rest will be added to your income from salary.Other benefits like your PF balance,leave encashment and gratuity will be treated as per the income tax law and will be exempt if found not above the prescribed limit.
I am a government employee. I am on deputation abroad on loss of pay since august 2005 and will be returning in june 2007. I have filed the income tax returns for the financial year (April 2004 to March 2005) in India. Then, I have filed income tax returns abroad for the year 2005 (jan 2005 to dec 2005, since the financial year is same as the calender year here) and 2006 (jan 2006 to dec 2006). Once I come back to India in June, I am not sure how to go about my income tax filing. For the period Jan 2007 to June 2007, the tax has been deducted at source monthly and paid to the income tax office here. Any refunds will be obtained only after I file the income tax returns. Can u advice me on this.
RE:income tax filing
by Amitabh on May 03, 2007 07:40 PM
For the year 2004-05 you were Indian resident so you had to file the return.For 2005-06 you were a non resident so you did not have to file any return assuming you did not have to pay any tax in India.Now for 2006-07 you are again a non resident as you returned only in June 2007.But tax has been deducted from Jan 2007 itself.So if the tax to be paid by you is less than what has been deducted for the period Jan to mar 2007,you are advised to file return and claim the refund.You must be having PAN.Even if filing the return is not mandatory you can still file it.And you are in any case advised to do so even for 2006-07 as without this you cannot claim refund of the tax deducted at source.You may show all your foreign income as exempt from tax as you were not a resident in 2006-07.
RE:income tax filing
by snehidhan on May 03, 2007 08:43 PM
Thanks for ur advice. But, still I have some doubts.
1. Should I have to file income tax returns for the year 2006-07 in India for the income received abroad (April 07 - June`07) and the income I will be receiving from (july 07 to March 07) in India. In this case, how I will get back the tax deducted (the tax amount is calculated assuming 0% rebate, the rebate is claimed only on filing the return) by my foriegn company and paid to the income tax department abroad. Secondly, can I get any exemption for the income obtained from the foriegn country for April 07 to June 07.
2. Will it be alright (I am sure it may not be so) if I file income tax returns in both the countries separately ie., for the income from Jan 2007 to June 2007 abroad (I stress again, the financial year is Jan to Dec)and for the income from July 07 to March 07 in India. In this case, I can get back the excess tax from the income tax department abroad.
RE:income tax filing
by Amitabh on May 04, 2007 07:19 AM
The question is - are you being doubly taxed for the same income - abroad as well as in India ? If that be the case,you can get the relief for the same in India when you file your return as per the double taxation avoidance agreement if any exists between india and that counrty,or as per the provisions of Sec 91.Bur Sec 91 allows relief only if you are an Indian resident in the relevant financial year and you have earned income abroad which has been taxed in the other country.As you are Indian resident,you will be taxed in India too for the same income so you can get credit in India of that tax paid abroad as per sec 91.For availing this relief you have to file your return for those years.
RE:Exemption on medical expenses spent on dependant Grandparents?
by Amitabh on May 03, 2007 07:14 PM
There are two sections under the income tax law that provide for deduction in respect of medical treatment for specified illnesses/disabilities and/or deposit made for handicapped dependents,Sec 80DD and Sec 80DDB.But in case of an individual assessee,the term dependent would mean only spouse,children,parents,brothers and sisters who is wholly or mainly dependent on the assessee.There is no reference to grandfather.
RE:Exemption on medical expenses spent on dependant Grandparents?
by raj kumar on May 03, 2007 09:05 PM
this only reflects that our "appreciation" for the so called indian culture of joint family system (which is still predominant in our society) is just "superfluous". All our politicians, Miss Worlds, historians etc., etc., just blabber and praise our so called Indian culture to outside world..........but at home grand fathers and grand mothers are stamped by government as "unwanted", not taken into account as "dependents". We are fools.....we are fooling ourselves.....in the name of "indian culture"...........there are many more loop holes in our system
RE:Exemption on medical expenses spent on dependant Grandparents?
by Amitabh on May 03, 2007 09:11 PM
I agree with you but you know,if the assessee is an HUF,deduction is allowed for ANY member of the HUF wholly or mainly dependent on the family.Even for individual,the law should allow any lineal ascendent or descendent of the individual and his/her spouse,just as is the case with gifts.
RE:CANCELL SBI CREDIT CARDS
by Tarun Nair on May 03, 2007 08:22 PM
SBI cards are the biggest cheats in the world. They cheated me too with bogus charges & forced me to pay as well
RE:CANCELL SBI CREDIT CARDS
by sachin belhekar on May 08, 2007 03:42 PM
Hello Mr Ray, I visited http://worstsbicard.blogspot.com/, but it says you need invitation. In that case how do we read it
RE:CANCELL SBI CREDIT CARDS
by on May 03, 2007 08:05 PM
Yes, SBI cards is a cheat. They have put insurance premium on my card inspite of telling them i dont want it. They said I will get Rs 6000 by draft, which can be returned in a month.I told them i dont need the money, they said this will establish your creditworthiness. Draft was dated 17th, which is the billing dateand scarcely did I deposit the draft, when the bill came and I am supposed to pay the amount plus 225 odd rupees(admin charges) till the 7th, that is, i held the money for exactly 5 days.Frauds.
RE:Tax query by a NRI
by Amitabh on May 03, 2007 01:50 PM
Interest accruing to a non resident fron external (non repatriable) rupee deposit scheme is exempt from tax.
