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Q: What is the tax treatment for income generated from property selling or renting for NRI?

A: Income generated by NRI are taxed in the same way as residents. On sale of the property it will be capital gains tax which will be at normal rates (i.e. up to 30%) if the asset is held for less...

Q: What is the eligibility criteria for an individual and a company to be treated as a non-resident for the purpose of Indian income tax?

A: An individual shall be considered to be a resident in India in any particular year if he stays in India: (1) For a period or periods amounting in all to 182 days or more; or (2) For 60 days or...

Q: How is taxable income determined in case of non-residents?

A: In the case of a non‐resident individual and a foreign company, the income which is received or is deemed to be received in India or income which accrues or arises or is deemed to accrue or arise...

Q: If a non-resident is willing to invest in the Equity Shares or debentures of an Indian Company by utilizing its foreign currency as a medium of purchase, then are there any specific provisions relating to the taxability of such shares?

A: In case of a non‐resident, capital gains arising from the sale of shares, or debentures of, an Indian company shall be computed by converting the cost of purchase, and the sale consideration...

Q: Is interest earned on NRE and NRO deposit accounts taxable?

A: The interest earned on deposits in an NRE account is exempt from tax in the hands of the NRI while the interest earned on deposit in the NRO account is taxable in India.

Q: If an NRI wants to remit some money to his parents in India, will such repatriation of money to India affect the taxability of the parents?

A: Repatriation of money to parents of an individual will not be liable to be taxed in India in the hands of the parents. This is because gifts made to relatives are not taxable as per the Income‐tax...

Q: Weather dividend earned income earned by NRI or foreign company from an Indian company is taxable?

A: The dividend income earned by a non – resident individual or foreign company from an Indian Company is exempt from tax in India as the company distributing the dividend is liable to pay dividend...

Q: What is the proof of tax deducted at source (TDS)?

A: A TDS certificate is issued in the name of the first unit holder mentioning the details of the transaction and the tax deducted

Q: How will the redemption proceeds be paid?

A: Redemption proceeds will be paid by a cheque payable to the first holder. The proceeds will be payable in India rupees. Tax shall be deducted at source.

Q: What is the mode of payment for repatriation and non-repatriation basis?

A: Repatriation basis: Payments for the purchase of units may be made by India rupee drafts purchased abroad or by cheques drawn on the NRE account. Non-Repatriation basis: Payments for the purchase...