Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Open DEMAT Account with in 24 Hrs and start investing now!
« Indirect Tax »
Open DEMAT Account in 24 hrs
 How to reduce tax on rent from vacant houses
 Make sure to claim these tax deductions
 Investment tips for those opting for new tax regime
 Indirect tax dept issues notices to companies over late input credit claim under GST frame
 E-generated document required for indirect tax notices
 FinMin seeks industry inputs on direct, indirect tax changes
 Govt gives businesses four months to settle indirect tax disputes
 ITR filing becomes easy via new 'e-Filing Lite' portal - 5 things to know Income Tax Return
 No income tax on interest from accident compensation: High Court
 How much tax do you need to pay for your equity investments?
 Income Tax Department proposes new norms for taxing MNCs in India

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 2024 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting