Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: list of goods taxed at 4% :: due date for vat payment :: VAT Audit :: empanelment :: VAT RATES :: TDS :: cpt :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: ACCOUNTING STANDARD
 
 
Indirect Tax »
 Clarifications on the Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016
 Tax department circular on indirect transfer put on hold
 Rising share of indirect taxes a step back to regressive era
 Double-digit Increase in Direct, Indirect Tax Collection, Says Arun Jaitley
 What is Direct tax?
 Indirect tax mop-up rate slows after note ban, Jaitley dismisses slowdown
 Tax buoyancy improves, thanks to indirect levy
 FM may unveil GST timeline, state compensation corpus on Feb 1
 Direct and indirect tax collection to exceed budget estimates this fiscal: Jaitley
 Startups brace up for legal war with Income Tax department
 Which investment is best suited for you to save tax

Property gifted to parents is exempt from tax in India
January, 15th 2016

I have been working with an airline company in Dubai for a few years now. I have a few fixed deposits in India. Will the interest earned on these deposits be taxed?

Any income earned or received in India is taxable in India. Therefore, interest earned on the fixed deposits in India is taxable in India.

However, there are certain exemptions available under the Income-tax Act, 1961. Any interest earned on the deposit in an non-resident external (NRE) account (savings or fixed deposit) is exempt under section 10(4)(ii) of the Act for an individual who is a person resident outside India as per the Foreign Exchange Management Act,1999 (Fema) or a person who has been permitted by the Reserve Bank of India (RBI) to maintain the aforesaid account.

Interest on a non-resident ordinary (NRO) account or other resident accounts is fully taxable (special exemptions apply for NRE and foreign currency non-resident, FCNR, accounts only). Interest is taxable at progressive rates of 10-30% (excluding surcharge and education cess).

We would recommend that you check the type of account you hold in India and your residential status in India under Fema rules to determine the taxability of the interest income.

I am a non-resident Indian (NRI) based out of Sweden. I have been living here for the past 25 years. I want to buy a house in my father’s name in India. Will either of us be taxed for it if I do so? I also wanted to know the tax aspect of the same.

If you buy a house in your father’s name, it will be termed as gift. Gift of any immovable property, where the stamp duty value of the property exceeds Rs.50,000, is taxable as “Income from other sources” in the hands of the recipient of the gift. However, certain gifts are not subject to tax.

In case the property is gifted to a relative, then there would be no tax implications, on the recipient or on the giver. The term ‘relative’ is defined under the income tax laws. This definition includes one’s parents.

Therefore, immovable property gifted by you to your father will fall under the exception and will not be subject to tax in India at the time of purchase.

However, any income from the property (for example, rental income) or subsequent gain from sale of the property shall be taxable in India.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Article Management Solutions System Article Management Software S

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions