Tax on nri

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Saket Tibrewal (Querist)

23 June 2014 A person of Indian Origin is now a resident of U.S.A. In the previous year the person has earned interest income in India on loans to various parties.

1.) What should be the rate to tax to be deducted by the deductees keeping in view the DTAA with U.S.A?

2.) If the income from such interest exceed Rs. One Crores, whether the assessee is required to get its account audited?

Nikhil Kaushik

Nikhil Kaushik (Expert)

23 June 2014 TDS should be done at 15% under article 11 of the DTAA

audit or not depends on whether the individual was in the lending business or not

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Saket Tibrewal

Saket Tibrewal (Querist)

23 June 2014 The assessee was not engaged in the business of lending business.

Saket Tibrewal

Saket Tibrewal (Querist)

23 June 2014 Thank You Sir for resolving the above stated query.

Further I would like to inform you that the assessee is not engaged in the business of lending money.

Will there be any change in the tax implication if the assessee has lent the money in foreign currency?

Nikhil Kaushik

Nikhil Kaushik (Expert)

23 June 2014 well then you might be able to avoid audit. the final opinion can only be made after looking at all the facts

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Nikhil Kaushik

Nikhil Kaushik (Expert)

23 June 2014 with regards to foreign currency, the tax answer should not change but the FEMA implications should be considered.

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