Hi,
My query is for a NRI shifting from UAE to India after 35 years. Now He has 5 house in the india at different places. Further he has 2-3 NRE A/c in which he has income received in india from the salary earned in UAE.
Then the question is that what is the tax treatement of NRE account when he shift to india and what is the treatment of Interest income from his NRE Account.
Whether he has to file his wealth tax return for his house.
Kindly suggest.
Let me make it simple for you
First of all it's a big MYTH ( FALSE STATEMENT ) that NRIs are exempt from wealth tax. Just like residents, NRIs are liable to pay wealth tax on their assets loacted in india.
Secondly if the NRI has returned to india permanently then certain benifits can be claimed
like, moneys (include NRE accnt) and assets bought by him into india or assets acquired out of such moneys anytime after his arrival and value of assets acuired by him out of moneys sent from abroad or from NRE accnt (within one year immediately preceding the date of his arrival in india) shall be exempt from wealth tax for SEVEN SUCCESSIVE AY.
wealth tax is exempt only for one house property, in case you own more than one house, you have the option to choose which house you want to be exempt.
All the commercial properties are exempt from wealth tax.
Any house that was rented out during the previous year for a minimum period of 300 days is exempt from wealth tax
Eg givin by FEMA on this. Must read to make it crystal clear.
|
1.
|
He brought Rs.25,00,000 along with him and purchased a Mercedez Car.
|
|
2.
|
He had sent Rs.40,00,000 to India on 5.11.2008. This money was utilised for purchase of gold on 28.11.2008.
|
|
3.
|
He sent Rs.20,00,000 on 5.08.2008 and purchased a residential plot of land in Delhi on 16.08.2008.
|
|
4.
|
On his return he brought with him diamond jewellery worth Rs.22,00,000.
|
|
5.
|
He had sent Rs.31,00,000 on 04.11.2008 which was deposited in his Non-Resident Indian account with a Bank. Out of this Rs.20,00,000 was withdrawn from the Bank for purchase of urban land but he could not purchase the same till 31.03.2010.
|
|
1.
|
Although car is an asset but in his case it will be exempt for 7 years.
|
|
2.
|
In this case, the value of gold as on 31.03.2009 will be included in his net wealth for assessment year 2009-10, but from assessment year 2010-11 to 2016-17 it will be exempt u/s 5(v).
|
|
3.
|
In this case the value of land will be included in his net wealth not only for assessment year 2009-10 but also for subsequent years. No exemption is available as the asset was purchased more than 1 year prior to the date of return.
|
|
4.
|
This shall be exempt for 7 assessment years commencing from assessment year 2010-11.
|
|
5.
|
On 31.03.2010 he holds more than Rs.50,000 in cash, but the same will be exempt as cash is also an asset and the exemption u/s 5(v) is also available for 7 years.
|
CAclubindia
