Q: Are any tax concessions available to NRIs?
A: Income from interest on monies standing to the credit of accounts other than NRO accounts is exempt from income tax. Gifts from such accounts are also free of Gift tax.
Q: Is interest income on RFC deposits taxable?
A: Interest income on RFC deposits is taxable and the exemption is available for returning Indians, subject to IT regulations.
Q: Can an NRI invest in mutual fund tax savings schemes?
A: Yes, an NRI/PIO can invest in ELSS (Equity Linked Savings Schemes) of Mutual Funds if he or she is willing to avail tax rebate under Section 80C of The Income Tax Act 1961. Currently, the limit is...
Q: When the TDS has to be paid is at the time of the agreement or is it applicable to the amount of advance paid without an agreement?
A: TDS has to be paid on or before the 7th working day of next month. The amount of TDS depends on whether the agreement is made or not. If the agreement is not yet made, TDS has to be deducted on the...
Q: How shall the TDS be deducted in a case where the property to be sold is jointly owned by a resident and an NRI?
A: TDS for a resident shall be deducted @ 1% and for NRI @ 20.8% of the value in proportion of their holding.
Q: How is income tax applicable in case of properties owned in India?
A: According to the Indian Income Tax Act, if a person (resident or NRI) owns more than one residential property, only one of them will be deemed as self-occupied. While no income tax will be...
Q: What methods I can use to save tax on income from mutual funds?
A: There are two ways to save tax on long-term gains.
Investment u/s 54EC: Sec. 54EC offers tax exemption if the long-term gains are invested in Bonds of NABARD, NHAI, REC, NHB, and SIDBI within a...
Q: Are fund units liable to the wealth tax?
A: No, units issued to FIIS/NRIs will not be treated as assets as defined under section 2(ea) of the wealth-tax act, 1957 and hence will not be liable to wealth tax.
Q: What is the tax liability for income received from mutual funds?
A: As per Section 10(35) of the Income Tax Act, 1961, income received from mutual fund units specified under Section 10(23D) is exempt from income tax in India and the mutual funds are subject to...
Q: What is the tax liability on redemptions?
A: Under Section 2(42A) of the Income Tax Act, units of a mutual fund held as a capital asset for a period of more than 12 months immediately preceding the date of transfer, will be treated as a...