Calculation of income tax

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Onkar (Querist)

10 July 2014 Dear Sir,

One of my friend is working with marine services from April to Dec 13 in abroad. but He is working for one indian company. during that period he has earn 17,30,000. Company has deducted TDS Rs. 1,72,970.00 He has paid Home loan principal 50,457 & Interest 1,70,151 where as he has paid 94,041 LIC premium, Please guide how much tax he has to pay and which deduction he can claim.

CA Mohit Bansal

CA Mohit Bansal (Expert)

10 July 2014 The determination of Residential Status of a person is very important for the purpose of levy of income tax, as income tax is levied based on the residential status of a taxpayer.
Hence kindly provide the details of residence of assesee in last four PY to determine his residential status. Thereafter we can determine the incidence of tax on him.

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Onkar

Onkar (Querist)

10 July 2014 Thanks Mohit Sir,

Yes he is indian resident, as per my knowledge for becoming NRI that person has be out of india for 180+ days in last 3 calender years.Please clarify if i am wrong. on that ground my friend become Indian resident only. He is in india for more than 180 days in last 2 yrs.

CA Mohit Bansal

CA Mohit Bansal (Expert)

10 July 2014 The person would be called as resident of India in PY if he satisfies any of the following two conditions:
1. He is in India in the previous year for a period or periods amounting in all to 182 days or more.

2. He is in India for a period or periods amounting in all to 365 days or more during the four years immediately preceding the previous year and is in India for a period or periods amounting in all to 60 days or more in the previous year.

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Onkar

Onkar (Querist)

11 July 2014 Thanks Sir,

So in that case what would be status of my friend ? because he is outof india for more than 182 days in previous year. But in total 365 days or more in india in last 4 yrs.

So whether he is liable to pay Income Tax for previous year and if yes then at which rate? whether he can avail exemption of Home loan and LIC ? And which form he has to use to file IT.

Thanks,

CA Mohit Bansal

CA Mohit Bansal (Expert)

11 July 2014 Tax Calculations:

Salary :1730000
Less: Deduction u/s24(b) 150000
GTI 1580000
Less: Deduction u/s 80C 100000
Total Income : 1480000
Tax theron : 282230
Less : TDS 172970
Net payable 109250

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CA Mohit Bansal

CA Mohit Bansal (Expert)

11 July 2014 * Tax theron : 282220

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Onkar

Onkar (Querist)

11 July 2014 Dear Sir,

so now he has to file ITR-1 or which form ? and his status would be Indian resident or Non-resident indian, and can i file return online here on behalf of him ? Further can i paid tax of him from my side(as he is now in abroad) or whether it is required to paid from his accounts only.

CA Mohit Bansal

CA Mohit Bansal (Expert)

11 July 2014 You can pay tax on behalf of him and file return ITR 1

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