The Tax Preparation Blog

Posts Tagged ‘india’

Question: What is the defination of Non- Resident Indian as per Indian Income Tax Act.?

Suppose a person staying in India till 5th August 2006, leaves India on th 6th of August 2006 and is out of India untill 31st March 2007 (FIRST TIME ABROAD), will he be considered as Non- resident Indian for the income tax calculation purpose? The income that the individual has accured outside India, will it be taxable or non -taxable? The income in the form of Salary will be accured by the individual, is from the project fund that has been funded by international organisation for humanitarian purpose?

Answer: Hello,I was in US in year 2005 for about 4 months. I was employed by an Indian company in US where I was paid salary in US$ on which I was paying income tax to US govt. Some 10% of the salary which was already tax paid to US govt. was being paid in India in INR by deducting relevant Income Tax to Indian govt. So it is a case of double taxation.I already filed the return in 2006 for year 2005 to US govt. on the earned salary in US by paying the applicable income tax over there.
Secondly, I have claimed the refund on the income tax for 10% salary which I was again taxed in India. I believe as I did not stay for 182 days in US so I cannot be NRI. But I was having NRI status in 2004 and in current year 2006.I am worried whether I will get the refund on the income tax claimed to Indian govt. or I will be ask to pay the income tax on the complete US salary on which I have already filed the return to US govt. and case is closed. Kindly clarify ASAP.
Unfortunately, for the FY 2005-06 , in which you were in USA for four months. For that year , you were resident in India for I T Act purpose. It means , your global income is taxable in India for FY 2005-06 and not the 10 % of income which was shown by you.
You will have to pay the tax on total income(salary) , but you will also be allowed “relief ” u/s 90 of the I T Act. There is DTAA signed with USA and Article 25(2) of the I T Act , says that the Resident Indian gets deduction of of tax paid to USA .
If you have filed the return in USA , you have abide by the taxation laws of USA , unfortunately, same is not true about your compliance with Indian law.If you are not asked by the department , you are lucky !
I would suggest you read following posting
“Article 25 – Relief from double taxation – “2. (a) Where a resident of India derives income which, in accordance with the provisions of this Convention, may be taxed in the United States, India shall allow as a deduction from the tax on the income of that resident an amount equal to the income-tax paid in the United States, whether directly or by deduction. Such deduction shall not, however, exceed that part of the income-tax (as computed before the deduction is given) which is attributable to the income which may be taxed in the United States
3. For the purposes of allowing relief from double taxation pursuant to this article, income shall be deemed to arise as follows :
(a) income derived by a resident of a Contracting State which may be taxed in the other Contracting State in accordance with this Convention [other than solely by reason of citizenship in accordance with paragraph 3 of article 1 (General Scope)] shall be deemed to arise in that other State ;
(b) income derived by a resident of a Contracting State which may not be taxed in the other Contracting State in accordance with the Convention shall be deemed to arise in the first-mentioned State

Cess cloud on Asim appeal

New Delhi, Nov. 22: Asim Dasgupta is in Delhi to seek a financial bailout for Bengal but the Centre is citing a twice-affirmed cabinet decision that blocks a largesse the state finance minister has been banking on.

The Adoption Tax Credit and the Affordable Care Act (10/05/2010 Webchat)

Question: Any body send me the professional tax slab in india?

Answer: The professional tax is State Tax and Central Tax. It differs from state to state. In States again it depends on area, that is Municipal Corporation area, Municipality area and Panchayat Board area.

In Andhra Pradesh (India) the collection of professional tax has been given to Commercial Tax department. For you to give an idea about A.P professional tax slabs, I am giving you the below link for your verification.

http://www.apcommercialtaxes.gov.in/ctportalnew/Acts/Appt/schindex.asp?act=APPT

Got Tax Questions? TurboTax Has Answers. For Free!

Taxpayers who want to plan for their 2010 returns can get a free answer to a personal tax question at www.freetaxquestion.com, starting today. The answers come courtesy of the tax experts at TurboTax®, the nation’s best-selling, No.1-rated tax software from Intuit Inc. .

www.ninakabra.com : Nina UK Property: “Know MORE so YOU Owe LESS” on Your UK Property Tax Bill

Question: I have some queries on Foreign Direct Investment?

What legal questions, will I have to face, (also what problems I may encounter) if someone from any foreign country wishes to send me a big amount of fund for investment in India (in my bank account)? What legal proceedings and formalities I will have carry out related to that fund? What are the various aspects that I should take care of? Kindly provide me answers in light of Reserve Bank of India rulings/guidelines, FEMA (Foreign Exchange Management Act), Income Tax Act, and Indian Contract Act and in any other law related to this affair. If a contract is signed among us which is prepared in his own country, what would be validity of that contract in India?
Note: The fund sending party will part the profit earned by the invested here.

Answer: The validity of the contract will not be affected by the place of signing or preparartion.

For other details u should explain the nature of arrangement.

G-20 Will Pledge to Avoid Competitive Devaluation

Group of 20 finance chiefs will today pledge to avoid competitive devaluations and endorse market-based exchange rates in a fresh effort to defuse mounting trade tensions before they hurt the world economy.

Preparing India Income Tax Return – Part 3

The Life of Steve Jobs – So Far [Apple]

# apple Here’s an idea: How about we stop focusing on livers for a second and look at the good, bad and as he might put it, “insanely great” parts of Steve Jobs life so far? More »

5/28/09: White House Press Briefing

Question: uk visa regected, reapply or appeal?

i am 65 yr old lady from india, i applied for uk visa for attending marridge of my sisters daughter, i attached the sponsorship of my sisters husband, with 2 bank statements 1 with 1,52,000 ponds and another 2500 pounds,house tax copy ,passport copy ,invitation card of brother in law and my fixed deposit receipt of nearly 6 lac ruppes,pan card .I dont know y but my application got regected due to 2 reasons:-1 that ur sponsor is only having 2500 pounds which is insufficient for him for my careing (but i also attached copy of bank account showing 1,52,000 ponds in his account)and 2nd that i m dependent on my husband with monthly income of 15000 per month which is not sufficient for my visit to uk, which i have written but in another coloum where it was written HOW MUCH MONEY DO U HAVE FOR VISITING UK—-my answer was 6 lac (photocopy of fixed deposit receipts enclosed, attested by my bank).NOW SHOULD I REAPPLY OR GO TO APPEAL AS I M LEFT WITH ONLY 18 DAYS OF MARRIDGE

Answer: You tried and was denied .. accept that fact … another try will make little difference …

ED confiscates Sami’s properties, imposes Rs 20 lakh fine

New Delhi, Dec.27 : The Enforcement Directorate has confiscated eight flats and five car parking spaces of singer Adnan Sami in Mumbai and slapped a fine of Rs 20 lakh on him for acquiring assets without permission of the Reserve Bank of India (RBI) as he was a Pakistani national.