My son is a non-resident indian. He’s considering of shopping for a home in his resident nation. Is it mandatory for him to point out it in his Revenue Tax Return (ITR) right here?
—Title withheld on request
Underneath the India Revenue tax (IT) legislation, there’s a requirement to report all international property within the ITR if the person qualifies as “resident and ordinarily resident” (ROR) of India in the course of the related monetary 12 months. Additionally, the revenue earned from such international property in the course of the related monetary 12 months together with the character of revenue and head of revenue beneath which such revenue has been provided to tax within the ITR must be reported in relation to every international asset.
The international property that are to be reported embrace international financial institution accounts, monetary pursuits, immovable property, accounts wherein a person has signing authority, trusts, some other capital asset held by the person exterior India. One needs to be very cautious in reporting international property/ revenue within the ITR. Any omission or inaccurate particulars might invite extra taxes, curiosity and penal penalties beneath Black Cash (Undisclosed International Revenue and Belongings) and Imposition of Tax Act, 2015.
Assuming that your son doesn’t qualify as “resident and ordinarily resident” of India in the course of the related monetary 12 months, he’s not required to report the home exterior India within the ITR. In case your son qualifies as “resident and ordinarily resident”, he might select both ITR-2 (if there is no such thing as a enterprise revenue) or ITR-3 (for enterprise revenue) to report international property and international revenue.
I’m a British citizen and plan to work from India. I withdraw wage from an organization within the UK and taxes can be deducted at supply. Would I’ve to pay tax in India too?
—Title withheld on request
Wage revenue for companies rendered in India can be taxable regardless of the placement of the payroll. Assuming that you just don’t have an employer in India, you can be required to pay advance tax in 4 installments or earlier than the submitting of ITR by the use of self-assessment tax together with curiosity for late deposit of advance tax and self-assessment tax by 31 July following the tip of the monetary 12 months.
Chances are you’ll declare advantages within the UK beneath the double taxation avoidance settlement between India and the UK to keep away from double taxation there.
Sonu Iyer is tax accomplice and other people advisory companies chief, EY India.
Supply: Live Mint