Tax Implication
This query is : Resolved
Mujeeb ur Rehman
(Querist)
21 April 2008
Can a person claim the exemption u/s 10(13A) from HRA for rent paid outside India? Will the answer be different if he is non-resident in India last year?
21 April 2008
SEC 10(13A) NO WHWERE TALKS ABOUT INDIA / ABROAD OR ANY PARTICULAR LOCATION.
BUT THE REFERENCE IN RULE 2A TO SPECIFIED CITIES OF MUMBAI/DELHI/KOLKATA/CHENNAI MAKES AS THOUGH THE REF. IS TO INDIA.
SO ONE MAY CLAIM EXEMPTION FOR RENT PAID FOR A LOCATION OUSIDE INDIA. WE NEED TO SEE HOW THE ASSESSING OFFICER INTERPRETS.
BUT THE BENEFIT OF DOUBT LIES IN ASSESSEE'S FAVOR,ASSUMING THIS SPL. ALLOW. IS GRANTED TO AN ASSESSEE BY HIS EMPLOYER IN INDIA.
as far as NRI is cocerned,AGAIN PL. ASSUME THIS SPL. ALLOW. IS GRANTED TO THE ASSESSEE BY HIS EMPLOYER IN INDIA, TO MEET EXP. ACTUALLY INCURRED ON PAYMENT OF RENT.
NRI is liable to file Return of Income only if his/her taxable income* in India in the relevant Financial Year (April –March) exceeds the basic exemption limit (i.e. Rs.1,10,000/- for F.Y.2007-08)
*-Non Resident Indian (NRI) earning below mentioned income shall be liable to file returns in India, irrespective of their Total Income being less than the Basic Exemption limit.
• Income from Short Term Capital Gains on equity shares or units of equity oriented mutual fund.
• Income from Long Term Capital Gains, which are chargeable to tax.
Thus for an NRI,if the liability for filing tax return arises as stated above ,he/she may file return claiming the HRA exemption IF SEC 10(13A) CONDITIONS ARE SATISFIED.
R.V.RAO
BUT THE REFERENCE IN RULE 2A TO SPECIFIED CITIES OF MUMBAI/DELHI/KOLKATA/CHENNAI MAKES AS THOUGH THE REF. IS TO INDIA.
SO ONE MAY CLAIM EXEMPTION FOR RENT PAID FOR A LOCATION OUSIDE INDIA. WE NEED TO SEE HOW THE ASSESSING OFFICER INTERPRETS.
BUT THE BENEFIT OF DOUBT LIES IN ASSESSEE'S FAVOR,ASSUMING THIS SPL. ALLOW. IS GRANTED TO AN ASSESSEE BY HIS EMPLOYER IN INDIA.
as far as NRI is cocerned,AGAIN PL. ASSUME THIS SPL. ALLOW. IS GRANTED TO THE ASSESSEE BY HIS EMPLOYER IN INDIA, TO MEET EXP. ACTUALLY INCURRED ON PAYMENT OF RENT.
NRI is liable to file Return of Income only if his/her taxable income* in India in the relevant Financial Year (April –March) exceeds the basic exemption limit (i.e. Rs.1,10,000/- for F.Y.2007-08)
*-Non Resident Indian (NRI) earning below mentioned income shall be liable to file returns in India, irrespective of their Total Income being less than the Basic Exemption limit.
• Income from Short Term Capital Gains on equity shares or units of equity oriented mutual fund.
• Income from Long Term Capital Gains, which are chargeable to tax.
Thus for an NRI,if the liability for filing tax return arises as stated above ,he/she may file return claiming the HRA exemption IF SEC 10(13A) CONDITIONS ARE SATISFIED.
R.V.RAO
21 April 2008
for all NRI TAX ISSUES PL. VISIT wwww.nritaxservices.com.
the paras relating to nri issues replied in my above query are sourced from the same website.
R.V.RAO
the paras relating to nri issues replied in my above query are sourced from the same website.
R.V.RAO
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