Nri taxation

Dear Friends,

i have a client whose residencial status is NRI for the f.y. 2012-13 & an oridinary resident for the 2013-14 .He earned 41,00,000 Rs. outside india he paid 85,000 rs tax paid outside india in 2012-13. He was working in Singapore.   He arrived in india sept.2013, after that he started a new business in which he suffered loss of around 2,00,000/- Rs. He also have the housing loan form 2012-13. I intend to submit ITR  for two years for 2012-13 and 2013-14.

Please suggest me  answers for follwing questions:

2012-13

1.Is this salary income  taxable in india? Please explain why(relevant sections, notifications etc.)?

2. Which ITR form to be used? Where to download for efilling?

3. Whether his residencial home and housing loan should be disclosed in balance sheet?

2013-14

1. Whether his business losses will be carried foreward? This being a belated return.  

Thanking you in advance

Regards 

Rajan Pandya  

 

Dear Ranjan,

1. If he is a NRI as per Income Tax Act for F.Y 2012-13, then i beleive you will not have to file returns for him as he is an NRI for the year and his GLOBAL income is not taxable in INDIA. Otherwise too his salary income recieved outside india will be mostly taxable in that country as per most of the DTAA's. So check his residential status once again and if he is a resident then please check DTAA with Singapore and claim relief/refund and file returns. Refer section 5,6 and 9.

2. For 2013-14 use Form ITR-4 for filing business income.

3. If you want you can show his residential house property in BS but the same will be disallowed while computation. Better is not to show the same.

4. You can only carry the unabsorbed depreciation as you are filing belated return.