22 March 2015
R/SIR, MY RELATIVE IS NRI & WORKING IN DUBAI. HE DOES NOT HAVE ANY INCOME IN INDIA. NOW HE IS GOING TO PURCHASING A FLAT OF RS. 1.25 CRORE IN JAIPUR. I WANT TO KNOW WHAT INCOME TAX PROVISION IS APPLICABLE FOR HIM. SHOULD I HAVE TO FILE HIS ITR SHOWING NIL INCOME?
First of all at the time of purchasing, he needs to deduct TDS @1% and remit the same because it exceeds the threshold limit of Rs. 50 lacs.
Secondly, only one property will be self occupied as per Income Tax Act. So, the flat he is planning to purchase in Jaipur would be the only property where he will be the owner? Does he own any property in Dubai as well? If yes, then income from only one property would be deemed to be Nil and the other would be deemed to be let out as per Income Tax Act.
CAclubindia
