INCOME TAX ON OCI STATUS

Tax queries 253 views 6 replies
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Executive
207 Points Joined October 2020

Hi All

My client has a small flat which he bought before he got the status of OCI - Overseas Citizen of India . now he is based in india with no foreign source of Income  . What will be Tax Implication in india where  he reside to stay permanently  with his OCI status . he has source of income in india throught salary 

Secondly he wish to gift the flat  to his family member which he bought before getting OCI status . What will be Tax Implication in india if He gift the property 

Awaiting for replies from Experts 

 

 

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On 29 January 2024 at 15:37 Report
Replies (6)
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Accountant
1227 Points Joined September 2015
As far as I know, only residential status need to be checked and taxed on the basis of that.

nothing else matters
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On 29 January 2024 at 20:30
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GST Practitioner & Accounts
15022 Points Joined March 2014
Yes, agree with @ Sharath Chandra , residential status as per Income tax act will be considered for taxation purpose.
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On 29 January 2024 at 20:48
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28018 Points Joined May 2017
Income tax on oci statu.
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On 29 January 2024 at 22:01
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463 Points Joined September 2019

If your client plan to stay in India permently then submit application for Indian Citizenship.

Your OCI status will be changed to normal citizen. 

Or if he want to continue as OCI, No need follow any procedure just file your tax return as NRI.

Tax implications : 

You have to pay tax on your Income from

1) salary

2) Housing Property

3) Business & Professional

4)  Capital Gains (Short & Long term)

5) Other Sources

As you said your client earns income from Salary. You have to file ITR-1 only for salary.

And your second question, he wishes to sell his small flat to his family member. 

To avail exemption, Donee should be blood relative, spouse, children, Parents so on.

 

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On 29 January 2024 at 22:51
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Executive
207 Points Joined October 2020

THANKS ALL FOR YOUR REPONSE APPRICATE YOUR TIME 

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On 30 January 2024 at 15:37
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Individual
27 Points Joined November 2022

OCI = Foreigner.

Even if the name suggests overseas citizen, he will be exactly equal to a foreigner who is a tax resident of India.

 

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On 14 February 2024 at 18:22


CCI Pro

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