Taxation of non residents
This query is : Resolved
17 July 2013
Dear Experts,
Facts of the Case
NRI based in South Africa came to India in December 2011 after 18 years of Service & as per the Section 6 he is an RNOR for the PY 2012-13, he holds NRO Account in India & receives interest income for which Tax Deducted at Source at the rate of 10 % as per DTAA agreement entered between India & South Africa. The Interest income earned is Say INR 12,50,000 he has eligible investments of INR 50,000 U/s 80 C of the IT Act of 1961.
My Query
1. Since he falls in 30% Tax bracket should he file the return in India & pay the excess Tax calculated as per income Tax Act. If yes, can he claim deductions Under chapter VI A while calculating his Tax Liability.
2. If NO, Is he Eligible to declare the income as exempt & Claim the refund since he has entered into a DTAA agreement?
Kindly help me to resolve the query
Regards,
Ashwath Shetty
Facts of the Case
NRI based in South Africa came to India in December 2011 after 18 years of Service & as per the Section 6 he is an RNOR for the PY 2012-13, he holds NRO Account in India & receives interest income for which Tax Deducted at Source at the rate of 10 % as per DTAA agreement entered between India & South Africa. The Interest income earned is Say INR 12,50,000 he has eligible investments of INR 50,000 U/s 80 C of the IT Act of 1961.
My Query
1. Since he falls in 30% Tax bracket should he file the return in India & pay the excess Tax calculated as per income Tax Act. If yes, can he claim deductions Under chapter VI A while calculating his Tax Liability.
2. If NO, Is he Eligible to declare the income as exempt & Claim the refund since he has entered into a DTAA agreement?
Kindly help me to resolve the query
Regards,
Ashwath Shetty
18 July 2013
He shall need to file the return and show the income as taxable in India.
Anuj
femaquery@gmail.com
Anuj
femaquery@gmail.com
18 July 2013
Thank you sir...
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