Jan 21, 2023 You need not open a fresh NRO account but only intimate your bank with documentary proof along with a request to designate your existing bank account as NRO. One has to deduct tax while buying property from NRI
Jan 14, 2023 Clubbing of minor’s income with parents cease upon minor attaining majority. Indexation benefit available on fixed maturity plans if held for more than three years. Profit on sale of IPO can be treated as either business income or capital gains
Jan 07, 2023 Deduction under Section 80E only available for interest paid on education loan. You need to deduct tax while making payment to a non-resident during purchase.
Dec 31, 2022 Gifting money to spouse is treated as application of income and not expenditure incurred to earn income. One can claim additional deduction of Rs. 50,000 per annum, under Section 80CCD (1B) over and above the Rs 1.5 lakh limit towards NPS contribution. Home loan rebate available to HUF, too
Dec 24, 2022 It’s best to complete five financial years from end of the year in which the possession was taken, to avoid the consequences of reversal of tax benefits under sections 80C and 24. No tax benefits available on application of income. No deduction available for NSC interest
Dec 17, 2022 Receipt of portion of sale consideration is not treated as transfer of asset. Both husband and wife can get tax benefits on joint home loan. Legal heir has to file tax return of deceased till date of death
Dec 10, 2022 Investments in shares are treated as capital assets and taxed as capital gains. In case of self-occupied property, there is a limit of Rs. 2 lakh for claiming interest under Section 24(b). Full amount received on recurring deposit at time of maturity not be taxable.
Dec 02, 2022 Tax on ESOPs is levied at two stages, once while exercise the option and once while selling. There is no restriction on the number of times a person can claim exemption on LTCG from sale of house as long as he invests it in another house
Nov 26, 2022 Parents can contribute to a minor child's public provident fund (PPF) account, but the aggregate of deposits made by each member cannot exceed the threshold of one lakh fifty thousand rupees in a year
Nov 19, 2022 If spouse is taxpayer, claim for deduction can be made for third child as well. Deduction in respect of interest on home loan can be claimed only when construction is completed and possession is taken. No deduction available for interest earned on fixed deposits
Nov 12, 2022 You can claim tax benefit on your second house starting from the year of completion and possession. It is important to ascertain whether a piece of agricultural land is agricultural within the definition of the Income-tax Act, 1961
Nov 05, 2022 In case you make a gift to your spouse, the income is required to be clubbed with your income. Income from NRE PIS account is not tax-free for an NRI
Oct 29, 2022 Monetary gift to parent from abroad will not be treated as income for the parent in India. Liability to pay tax in India depends on an individual’s residential status
Oct 22, 2022 The employer issues Form 16 only after the annual returns of TDS have been filed with the income tax department. A deduction of Rs. 5,000 is available for preventive health check-up within the overall limit of Rs. 25,000 under Section 80D
Oct 14, 2022 The entire sale proceeds received by a woman on the sale of a property as alimony following a divorce is not considered as taxable income. One cannot claim 80C benefits for home loan taken from a relative
Oct 08, 2022 A senior citizen does not have to pay advance tax if he/she does not have any income taxable under the head ‘income from business or profession’. One can treat fair value for computing capital gains for assets acquired before April 1, 2001
Oct 01, 2022 Even if the bank issues a single certificate for a joint home loan, co-borrowers can claim the tax benefits in the ratio of their share.
Sep 24, 2022 You can claim deduction on interest on home loan in full if the house is let out, irrespective of the fact whether this is your sole house or additional property. An NRI can remit a maximum of $1 million in a year from his NRO to NRE account without seeking the RBI’s approval
Sep 17, 2022 Income from let out property is taxable. One can also set off loss under “Income from House Property” up to Rs. 2 lakh against other income in the current year. If property is sold within five years, then all deductions under Section 80C for repayment of home loan will be reversed and treated as income
Sep 10, 2022 If you have a son or daughter living abroad who has taken foreign citizenship, he/she will have to pay tax on sale of property in India. Unmarried person can form a Hindu Undivided Family with adopted child
Sep 02, 2022 Counselling income received by a medical practitioner falls under the head ‘profits and gains of business or profession’, and accordingly they will need to file their income tax returns through ITR 3. Gifts received from the karta of the HUF is tax-free as it falls under the category of gifts received from relatives
Aug 27, 2022 Parents can claim benefit under Section 80E of the Income-tax Act, 1961 in respect of interest paid on loan taken for higher education abroad. The applicability of long-term or short-term capital gains tax on sale of property will depend on the holding period of the property prior to its sale
Aug 20, 2022 Beneficial ownership, as determined by the proportion in which the joint owners pay towards the purchase of the property, determines the ratio in which the income from the said property can be apportioned. Exemption of house rent allowance is only allowed to salaried persons
Aug 13, 2022 A non-resident Indian can maintain a PPF account for up to 15 years as long as he/she retains his/her Indian citizenship. Under income tax laws, partial partition of Hindu Undivided Family (HUF) is not recognised
Aug 05, 2022 An appropriate late fee will be applied if you have missed the deadline of July 31, 2022, for filing an income tax return (ITR) but file by the last date of Dec 31, 2022, for the financial year 2021-2022. Also, a PAN card is mandatory for claiming TDS returns, even for NRE accounts.