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INCOME TAX- For NRIs, only income sourced from India will be liable to tax
April, 28th 2021

For FY 2020-21, you qualify to be a non-resident as per the Income Tax Act and accordingly, only the income sourced in India would be liable to tax in India. You may claim credit of taxes deducted in India, while offering the corresponding income to tax, at the time of filing the Income Tax Return. Excess of TDS over the final tax liability, shall be refunded.

I have declared my husband and his parents my dependents for claiming LTA and medical facility from my employer.My employer has reimbursed the chronic medical expenses for my parents-in-laws but exemption for income tax has been denied. What should I do?


—Kanwaljeet Kaur
As per section 17(2), expenses incurred or reimbursed by the employer for medical treatment of an employee or his family, are not chargeable in the hands of the employee, subject to certain conditions (like treatment in approved hospitals, prescribed diseases). Family has been defined to mean spouse, children or dependent parents, brothers and sisters. Parents of spouse/ in-laws are not covered in the said definition, hence income tax exemption has been denied. The amount reimbursed shall be taxed as salary in your hands.

Is it mandatory to declare loan, short term capital loss and some business income in the same ITR?
—Mangal Deep Singh


Every individual having income above the prescribed threshold, has to declare particulars of income earned/ loss incurred under different heads, deductions/ exemptions claimed and resultant tax payable in ITR. Loss, if any, can be set-off against income, subject to certain conditions. Business loans may have to be declared in the balance sheet, if assessee has business income. Seek professional help to ensure correct disclosure in your ITR.

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