Tax query

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 April 2013 My brother had gone abroad in March 2012. His income (from salary & interest) were fully taxable in India for the year ended 31st March 2012 being resident at that time. Now he enjoys the status of being NRI and earning salary abroad which is taxable there. How should he file his return for the AY 2013-14.

He has some deposits in the form of FDR which had been made when he was a resident. There is interest income on the same for AY 2013-14 and also TDS on it but the interest income is less than the prescribed taxable limits i.e. less than Rs 2 Lacs. Should we file showing his residence status as "Non Resident" and show his interest income only which is earned in India and claim the refund of tax deducted thereon. Also he is having a house loan on a house situated in India where parents are residing. Would he be able to claim the deduction of interest paid on housing loan during AY 2013-14. Please suggest.

CA Krunal

CA Krunal (Expert)
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23 April 2013 The Treatment for interest which you suggested is proper.

However i do not understand why he would be required to claim deduction U/s.24 when he does not have taxable income.

However if there is taxable income interest deduction can be claimed as it is not necessary that such house has to be occupied by himself.

Querist : Anonymous

Querist : Anonymous (Querist)

24 April 2013 Sir, thanks for your advice.

One more question which comes to mind is that - Is it not good to claim deduction u/s 24 so that the c/f house property loss can be used in the coming years if he tends to have any rental income i.e. income from house property.

Please advise.