A Non Resident India wants to settle down in India after 35 years. He has 5 house in the different Places.
He has 2-3 NRE account in different PSU banks in which has huge sum of Money.
I want to Know that what is the Tax treatment for the NRE account in which huge sume of Money earned in UAE. Further what is the Tax treatment of Interest Income of NRE account.
Where he has to file the Wealth Tax Reture for 5 house?
Kindly suggest.
Regarding Wealth tax ,please refer to S. 5 of the Wealth tax Act , which provides for exemption in respect of certain assets
Clause v
"In the case of an assessee, being a person of Indian origin [or a citizen of India (hereafter in this clause referred to as such person)] who was ordinarily residing in a foreign country and who, on leaving such country, has returned to India with the intention of permanently residing therein, moneys and the value of assets brought by him into India and the value of the assets acquired by him out of such moneys [within one year immediately preceding the date of his return and at any time thereafter] :
Provided that this exemption shall apply only for a period of seven successive assessment years commencing with the assessment year next following the date on which such person returned to India.
Explanation 2.—For the removal of doubts, it is hereby declared that moneys standing to the credit of such person in a Non-resident (External) Account in any bank in India in accordance with the Foreign Exchange Regulation Act, 1973 (46 of 1973), and any rules made thereunder, on the date of his return to India, shall be deemed to be moneys brought by him into India on that date
Further clause vi provides
| (vi) | one house or part of a house or a plot of land belonging to an individual or a Hindu undivided family : |
Interest income earner by a resident of India would be liable to Income tax. But it is not charged in case of NRI
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