Money sent to parents in India is tax-free

Resident individual partners, or owned by non-repairable rupee firm can borrow from the Non-Resident Indians:

    * The loan term not exceeding three years;
    Again for the loan to the lender requires the borrower's personal or business needs, and the whole not being used, and
    * Interest rate does not exceed Bank Rate plus 2%.

If you have a friend in accordance with the above criteria are documentary evidence of debt, we do not see any problems.

However, if you do not have the necessary documentation, the loan you gave to your friend would be considered a gift. Consequently, it is not refunded to you, it can treat the loan as payment.

If this is the case, the only recourse available to give a gift to you is your friend.

A resident of an NRI / PIO to $ 200,000 per fiscal year for a gift can.

An NRI to a friend India (Jaipur) rented his shop. TDS purposes donor payee (ie, NRI) has demanded the PAN card. I have the following questions:

1. NRIs can apply for a PAN card?

2. NRIs face what will result if the donor fails to deduct TDS, or after the cut is the same, not to collect?

3. NRIs will have implications on? She files her return?


Yes, NRI a PAN card (Permanent Account Number) can apply for. The donor after the loss (deducted at source) TDS or lower fails, not the government a deposit account, it is not the donor is the responsibility of the payee diaspora.

As far as non-resident Indians are concerned, their own obligation to pay taxes is correct. If TDS has been applied, it will be over and above the only addition to TDS, if any, need to pay.

If an NRI total income before deduction of Rs.1.50 lakh (150,000 rupees), it essentially an income tax return filed in India is up. Despite the fact that the TDS has been cut or not.

I request you to please give your views on:

Whether interest RFC fixed deposits in banks (foreign and Indian currency) earned on taxable under the Indian Income Tax Act. Us provisions, namely section and sub section under FEMA, which is free from interest income earned by RFC deposits are known.

My humble understanding of the subject that RFC and FCNR deposits are governed by both FEMA and the interest so should be free from Indian income tax.

RFC deposits if interest is taxable, there is no benefit at all. There is not any discrimination or differentiation between the two be credited as the source for two out of India as an NRI should have earned.

A stream of income, including the RFC (Resident Foreign Currency) Account, the interest on Indian Income Tax Act are decided by weight. Foreign Exchange Management Act is not included with the taxes, the repatriation, remittance, investment, etc. What is with respect to rules and regulations

Taxability of interest on RFC about, note that one is free to Section 10 (15) (FA) of the Income Tax Act.

India, 5 May 2008 I was working. After that I was deputed to Sweden to work permit visa and then returned to India not to. I estimate for 2009-10 is considered to be a resident in India?

According to my understanding, I would consider a non-resident in India as I in India for 182 days or more to qualify as a resident should be attended to. However, I stretch to go abroad for employment purposes will be covered by the individual, even if I'm going there on a work permit or business visa?


Your understanding is correct. 2008-09 (09-10 Q), since the 182 days of his stay in India will be low, you will be considered an NRI.

A work permit or are going abroad on a business visa to go abroad only as employment is considered. In other words were you a tourist visa or other visa prohibits you from working on the trip, you are going abroad on employment and so on Enarae Upar rule do not qualify for status as the idea be.

I am an NRI (U.S. residence) holding NRE accounts in Mumbai. I have a NRE account with money in the branch his mother (who is an Indian resident) regular savings account, also am planning to transfer. I have the following questions:

1. I believe that this amount is tax free without any limitation. But can you please confirm this for me?

2. Since I will lose the amount obligations, there sending money abroad to relatives in India of any other lawful way. For example, I heard a legally for $ 25,000 per year is allowed to send abroad. Is this true? If so, how that will be reflected on my mother's IT return? Also, what are the implications for me?

1. Yes, the amount you transfer to your parents, without limitation, for free.

2. Master Circular on July 1, 2006 dated, according to the Indian inhabitants for the maintenance of close relatives abroad for up to $ 100,000 per year are allowed to remit. A close relative of your parents you may have by law and therefore should take care of your needs.

Also, the latest AP Dir circular, according to the range of $ 25,000 that you U.S. $ per fiscal year increase of 200,000 is mentioned, including the gift. Therefore, an Indian resident as much as $ 300,000 per year from overseas, out of which $ 100,000 is required to send to relatives.

You call your mother or vice contrast the amount of money according to the current Indian tax laws is neutral.

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