Tax liab.in hands of nri on h.p.income in india

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SATYENDRA KR. GUPTA (Querist)

09 March 2012 Dear friends,
Case No.1.
A NRI hold only one house property in India, which was let out to Individual during the F.Y.2011-12 and received rent of Rs.7, 20,000/- .and foreign income earned during this period 15,00,000/- and TDS deducted Rs.350,000/-.
What will be the tax liability in India in respective head of incomes in hands of NRI during the F.Y.2011-12?
Case No.2.
If the legal ownership of the above property has been given by such NRI to his mother and rent on such property is received by his mother in her name, then what will be tax liability IN India in hand of Mother AND NRI ?

Thanks & regard with Jai Ho
Satyendra Kr. Gupta

CA. Anuj Gupta

CA. Anuj Gupta (Expert)

10 March 2012 Case 1:
If the NRI is not resident in India then the rental Income shall be taxed at normal rates in India. Foregn Income shall not be taxed in India. I wonder how Rs. 3,50,000/- can be deducted on rental income in India.

Case 2:
If the property has been transferred to mother then NRI shall not be chargeable to tax in India . However proper legal documentation should be ensured .

Anuj
+91-9810106211
femaquery@gmail.com

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SATYENDRA KR. GUPTA

SATYENDRA KR. GUPTA (Querist)

10 March 2012 Thank you so much to you Sir, for your valuable opinion regarding my Income Tax query.
In the above query TDS deduction outside India of Rs.3,50,000/-in respect of foreign income not on rental in India.

Thanks & regard with Jai Ho
Satyendra Kr. Gupta

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