A Permanent Account Number (PAN) is a 10-digit unique identification number issued by the Income Tax Department of India. This alphanumeric code is essential for distinguishing between different individuals and entities. Each PAN is uniquely crafted to reflect the location and identity of the holder. The significance of a PAN cannot be overstated. In fact, …
The case involves an assessee who is a Resident and ordinarily Resident under Indian Income Tax law and also a tax Resident of the USA. He filed his income return on October 21, 2021, seeking a refund of Rs.34,380/-, claiming a Foreign Tax Credit (FTC) of Rs.4,32,10,256/- under section 90 of the Income Tax Act, …
The Annual Information Return (AIR) Scheme, which began on April 1, 2004, mandated certain entities to report specific transactions to the Income Tax Department (ITD). With the amendment of Section 285BA of the IT Act on April 1, 2015, designated individuals must now provide a Statement of Financial Transaction or a reportable account. Rule 114D …
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In a recent ruling by the Income Tax Appellate Tribunal, Delhi Bench, a significant decision was made regarding the computation of long-term capital gains and the eligibility for deduction based on the indexed cost of acquisition. Let’s delve into the details of this case: Case Overview: The case, with the identifier ITA No.1368/Del/2022, pertained to …
NRI ITR filing in India is required when a Non-Resident Indian (NRI) has income that is taxable in India or otherwise falls within the applicable income-tax return filing requirements. Indian rental income, capital gains from Indian assets, salary earned for services performed in India, interest income and other India-sourced income can create Indian tax obligations. …
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1. What is the TDS rate applicable to property rented by an NRI? The TDS rate applicable to property rented by an NRI is 30%, plus an additional 4%, totalling 31.2%. This TDS is deducted by the tenant from each payment made to the NRI lessor. 2. Does the buyer need to obtain a Tax …
These days, NRIs are increasingly investing in India, driven either by economic growth opportunities or emotional ties, often with the intention of retiring in the country. Consequently, they opt for investments in real estate, benefiting from its appreciating value over time. Some NRIs find it convenient to rent out these properties for additional income and …
Continue reading “TDS on Rent paid to NRI, Tax Planning for NRIs on Rental Property”
Introduction: Filing Income Tax Returns (ITR) is not just a responsibility for residents; Non-Resident Indians (NRIs) also need to comply with Indian tax laws for income earned in India. Whether you’re a working professional abroad, a student, or an entrepreneur, understanding the documents required for ITR filing as an NRI is crucial. In this blog, …
Continue reading “Essential Documents for NRIs: A Guide to ITR Filing”
Introduction: As the ITR filing season for Assessment Year (AY) 2024-25 kicks off, taxpayers, whether residents or Non-Resident Indians (NRIs), are gearing up to ensure a smooth and hassle-free process. Whether you’re a regular taxpayer or filing for the first time, it’s crucial to gather the necessary documents and understand the process to meet the …
Continue reading “Guide to ITR Filing for AY 2024-25: Essential Documents and Tips for Taxpayers”
In recent times, it has become increasingly common for the income tax department to send notices to Non-Resident Indians (NRIs) regarding their investments in fixed deposits and mutual funds. Typically, these notices begin with an inquiry under section 148A, aimed at verifying the source of income for transactions involving fixed deposits and mutual funds. If …
