INCOME TAX ON OCI STATUS

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 

 

 

Replies (6)
Quick Summary
This discussion explores the income tax implications for individuals holding Overseas Citizen of India (OCI) status who are residing permanently in India. The primary focus is on how their residential status, rather than their OCI status itself, determines their tax liability on Indian-sourced income, including salary and property. It also touches upon the tax implications of gifting a property acquired before obtaining OCI status to a family member.

As far as I know, only residential status need to be checked and taxed on the basis of that.

nothing else matters
Yes, agree with @ Sharath Chandra , residential status as per Income tax act will be considered for taxation purpose.
Income tax on oci statu.

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.

 

THANKS ALL FOR YOUR REPONSE APPRICATE YOUR TIME 

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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