Residential Status of BOI

Tax queries 735 views 8 replies

If the executor of an estate of a deseased person(an Indian resident) is an Indian resident while the benefeciaries of the estate are all non-residents, then whether the BOI i.e the estate of the deseased person is regarded as resident or a non-resident?

Replies (8)

hello, 

it depends on the control and managemnt...if it is wholly in india..then AOP or BOI may be conisdered as resident only

it doenot neccessrily imply tht if the executor is resident  then boi may also be resident coz it shal satify the condition of control and managemnt

Thnakyou for your reply Sir,

Let us assume that the BOI is a resident.

The BOI has a house property which has to be sold. How is it possible to claim exemption from the Long Term Capital Gains? The benefeciaries are interested in investing in another house property after selling the old one. However the BOI being a estate of a deseased person cannot purchase the property in its own name and claim exemption u/s 54 as this exemption is available only to the individuals and HUF.

Also if the beneficiaries purchase houseproperty in their own name, then too exemption will not be available as the Capital gains will be the taxable income of BOI on which it has to pay tax, while the members will be getting relief u/s 86 for their share of income in BOI. Unlike before it is not optional now to club the income of the BOI in the hands of its members and file the return. It is mandatory to file the return of the BOI separately.

dear dhruv,

 there is one option if memebrs sell their property in their name then they can avail exemption under section 54 if they file return as an individual

OK..but the problem is then they will suject to TDS provisions - Section 115E and Section 195 (TDS on payments to non residents).

yaaa i wil let u knw shortly

Thankyou sir.

 

hey luk non residents need not pay tax yaar,they wil get credit of TDS so why to worry let them sell the property

Thankyou so much Sir for your reply and efforts.


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