21 July 2010
B. It also depends on how the transfer is done to the Resident. If the NRI earns income that is first credited to the NRI (exempt or otherwise to which Juzer has given the right reply) and then the NRI remits or issues cheque to Resident, provisions of Section 56 IFOS applies depending on relationship between the NRI and Resident as in any case the NRI has borne the tax if taxable. What would happen in this case is that NRI will be exempt or taxed depending on type of account. Resident will be taxed depending on relationship of his with NRI.
Please reply to following: 1) In which country the concern NRI is residing? 2) Is NRO FD placed from NRE Funds or remittance from outside India? 3) Does NRI has PAN?
It doesnt make any difference if Nominee is resident.
CAclubindia
