Outward Money Remittance By Non-Resident Indians (NRIs), Foreign Citizens (OCIs, PIOs) - From NRO Accounts To NRE Bank Account/Foreign Bank Account – Tax Advisory/CA Services In Delhi NCR, Mumbai, Chennai, Bangalore, Hyderabad, Gurgaon, Noida, Pune, Gujarat, Kochi, Kerala, Chandigarh, Ludhiana, Punjab, UP, HP, Dehradun, Other Major Cities India
Doing NRO Account Outward Repatriation is a general and regular requirements of various NRIs, OCIs. In this regard, NRIs look forward for 15CA 15CB form filing services which is a prerequisite of Banks. In this regard, we assist NRIs in preparation & filing of Forms 15CA 15CB with Income Tax Department in all major cities in India. Accordingly, we also assist NRIs in many cases for setting up a communication with Banks. In this regard, we do assist NRIs across India with our presence in all major cities in India.
Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs), Person of Indian Origin Residing Abroad (PIOs), Foreign Citizens Residing In India (Expatriates), often remit their money (lying in their Bank Account in India) from NRO Account to following:
When the NRI/OCI/PIO requests their bank for the remittance, their banker generally require some additional documents ie:
Property Sale By NRIs, OCIs, Foreign Citizens – TDS U/s 195 – Lower Tax, TDS (Nil) Exemption Certificate U/s 197 (Filing Form 13 Online) – Tax Consultant in Delhi NCR, Bangalore, Mumbai, Chennai, Kolkata, Hyderabad, Pune, Gujarat, Chandigarh, Dehradun, Gurgaon, Noida, Kochi, Other Major Cities India
As per Indian Tax Laws, TDS provisions apply on various financial transactions in India.
TDS is also applicable on Property Sale Transactions in India.
In relation to property sale matter, If the seller is Resident Indian, TDS rate is 1% and governed by section 194IA. However, if the seller is Non-Resident (i.e. NRI, OCI, Foreign Residents), TDS is governed by Non-Resident TDS provisions i.e. section 195 of the Income Tax Act.
Under the Non-Resident TDS Provisions i.e. Section 195, TDS rates apply at the maximum rates on the Sale amount of Property. This rate is 20% if property is long term capital asset. The rate is is 30% if property is short term capital asset. Applicable surcharge and 4% cess is extra.
Generally, in all property sale transactions, it happens that the actual tax liability in the hands of tax payer (non-resident seller) is lesser than the proposed TDS on that transaction.
The pain of Non-resident property seller can be understood by an example. E.g. An NRI agrees to sell a property @ Rs 1.50 Crore, and property purchase cost (after indexation) in the hands of NRI is Rs 1.45 Crore. Hence, a capital gain arises for Rs 5 Lakh only. Now, as per Non-Resident TDS provisions (Sec 195), considering property is long term asset (i.e. holding period exceed 2 years) the applicable TDS is 23.92% (20% + SC 15% + cess 4%) of sale amount i.e. Rs 35.88 Lakh. Though actual tax liability is Rs 1.04 Lakh only i.e. 80% of Rs 5 Lakh (20% + 4% cess; SC not applicable on below 50 Lakh Rs gain).
Hence, in the above situation, as per applicable NRI TDS provisions 35.88 Lakh TDS will be deducted against actual tax liability of Rs 1.04 Lakh. Though, NRI can claim the excess TDS refund (Rs 34.84 Lakh) through filing of ITR. However, it is a time taking process. If TDS deducted on full amount, Non-resident money will be blocked with Income Tax Department for a long time, which causes loss of bank interest also.
Hence, this is a Genuine Hardship on the Non-residents (NRIs, OCIs) in relation to their property sale matter transactions in India.
To overcome this situation, Income Tax Act (sec 197) provides for Lower TDS Certificate option (or also called as TDS Exemption Certificate).
To seek relief in the Withholding Tax Rates, NRI/Foreign Citizen can apply for Lower TDS Certificate (TDS Exemption Certificate) with the Jurisdictional Income Tax Authority.
This application is submitted in Form 13 of Income Tax Forms.
NRI Lower TDS Certificate is an online application process (wef Oct 25, 2018)
NRI applicant need to prepare and arrange various supporting documents for this Lower TDS Certificate. All the documents are submitted with Form 13 Application online.
On submission of documents, the application moves to the Jurisdictional TDS Certificate Officer. The officer review the application and raises observations & further requirements if any.
On satisfying all the concerns, the officer processes the certificate and allow Lower TDS to the NRI/Foreign citizen in relation to the transaction.
On receipt of the Lower TDS Certificate (or TDS exemption certificate) the buyer deducts the TDS as per Certificate.
Hence, through this process NRI/Foreign citizen gets TDS relief before the sale transaction, and avoid blocking of their money with Income Tax Department.
NRIs acquire immovable property in India. This acquisition is either by way of investment by NRI himself or by way of inheritance from their parents/grand-parents etc. In lots of cases, NRIs wish to sell this immovable property due to two reasons. One is to fetch them a good return. And two they are settling outside India, hence, they don't wish to hold this immovable property any more. Consequently, there are lots of sale of immovable property transactions happening by NRIs/PIOs. With this, lots of tax issues arise before them. Certain questions which generally come to their mind are:
The same can be understood by understanding the salient features of tax provisions wrt sale of immovable property:
Particulars | INR |
---|---|
Sale Consideration | 50 Lac |
Less: Indexed Cost of Acquisition | 30 Lac |
Less: Expenses wrt Sale (eg. broker fee) | 2 Lac |
Capital Gains | 18 Lac |
NON RESIDENT, NRIs ITR FILING SERVICES IN INDIA - TAX CONSULTANT, CA SERVICES IN DELHI, MUMBAI, KOLKATA, CHENNAI, HYDERABAD, BANGALORE, KERALA, GUJARAT, GURGAON, PUNE, NOIDA, MAJOR CITIES INDIA
Income Tax Return Filing in India is an annual compliance, which is to be complied by all taxpayers. Non-residents are not an exception for this. For Non-residents (NRIs, PIOs, OCIs, Foreign Citizens), ITR Filing is more important. Also, Non-residents are more compliant for their duties in relation to tax compliances etc. Here are some important things in relation to Non-Resident ITR filing in India.
Non-residents generally have following kind of income which is taxable in India:
ITR filing process includes following steps:
Due date of ITR filing in India is July 31 of Assessment Year for Non-Audit cases (generally applies to all Non-Residents). E.g. If ITR is to be filed for FY 2022-23 then due date will be July 31, 2023. Belated ITR or Revised ITR can be filed upto Dec 31, 2023.
Why NRI should file ITR in India. There are lots of benefits for NRIs to file ITR in India. In this link, benefits of ITR filings can be understood in more details BENEFITS FOR ITR FILING IN INDIA.
There are lot of information, which a Non-Resident (NRI, Foreign Citizen, OCI, Expat, PIO) must know in relation to his ITR filing in India. Here are some important information in relation to latest ITR (FY 2022-23), which Non-Resident, NRIs, Foreign Citizens, Expatriates must go through before filing of their ITR.
Here are links for more information in relation to NRI ITR Filing in India.
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