By Chirag Nangia
I’ve been working in Zambia since 2000 and ship my wage to my NRE account in India. Is it taxable in India? If it’s taxable, then beneath which part ought to I present whereas submitting the IT return?
—Raja
It has been held in varied judicial pronouncements that mere receipt of wage by NRI in his Indian NRE account for providers rendered exterior India will not be taxable in India. Further, curiosity earned by NRIs on such NRE accounts is tax-free as properly. NRIs incomes earnings within the type of wage and curiosity, exceeding Rs 2,50,000 are required to furnish return of earnings in ITR-2 type. However, NRIs can declare advantages beneath tax treaties and declare refunds if TDS is deducted on their earnings. For this, it’s good to reconcile TDS credit score and advance tax as mirrored in Form 26AS.
I bought a residential home in 1982 for Rs 55,000. I spent Rs 4 lakh in 1991 to transform and assemble the primary ground. I bought the home for Rs 70,87,000 on November 27, 2021. How do I declare tax reduction on long-term capital features. I’ve paid Rs 70,870 as transaction tax. I’ve invested the cash in a flat which is beneath development.
—M Hanumantha Rao
For computing capital acquire on sale of property, since you’ve gotten bought the property, the price of acquisition shall be the upper of the particular value or FMV as on April 1, 2001, which is listed to account for inflation and any value of enchancment incurred previous to April 1, 2001 shall be ignored. Further, if web consideration arising on sale is invested for the acquisition of a residential home property (one 12 months earlier than or inside 2 years from date of switch) or for development of a residential dwelling (inside 3 years from the date of switch) then proportionate capital features is exempt beneath part 54F. This exemption is allowed if an assessee doesn’t personal multiple residential home property on the date of switch. The LTCG so calculated is taxable at 20%, plus a cess of 4%. Further, the tax paid by you is TDS as per Section 194 IA, which requires tax @ 1% to be deducted by the purchaser of the property on the time of constructing fee of sale consideration.
The author is director, Nangia Andersen LLP. Send your queries to [email protected]
Source: www.financialexpress.com”