Tax returns, Bank Accounts & Investments for NRI's.
This query is : Resolved
21 March 2008
Dear Sir / Madam,
I am an NRI from U.S. I have salary account (Savings A/C) in India which was opened at the time of joining with India software company in Dec 2004.
1. I have got the home loan when I was in India and I have set up auto debit option on my Savings A/C to pay monthly EMI'S for this. I did not claim tax exemption on this so far because I don't have any other income in India to get the tax benefit. Can I show this on my tax returns from this year on wards even I am using India savings A/C to pay the home loan EMI'S?
2. Now I am going to occupy my Residential flat (which is bought from the above said home loan) in this month and I am going to rent out this to a private party (not relatives) starting from April 2008. Can I keep this rent income in my present Savings A/C and is it taxable or not?
3. I came to U.S in May 2006 and I have done my tax returns (Form-16) for year 2006-07 (1st April 2006 to 31st March 2007) by showing India salary only (March, April & May 2006) and I did not show the overseas salary which is taxable here. Is this correct?
4. Still my residential status is not updated on either my Savings A/C or Home Loan A/C in India (Resident Indian only) and also I am remitting the money to my own savings A/C from here every month for the purpose of my family maintenance expenses and to pay home loan EMI's. Can I continue this?
5. Also I bought a house plot in India by transferring money to my own Savings A/C from here in the year 2007 as an NRI. Is this correct?
6. As explained above, so far I have used my India Savings account only for all these transactions.
7. Is it mandatory for NRI's to perform any transactions in India using NRE / NRO A/C's only or is it optional?
8. What care needs to be taken for 2007-08 tax returns submission to correct all these?
Please suggest the best solution for this.
I am an NRI from U.S. I have salary account (Savings A/C) in India which was opened at the time of joining with India software company in Dec 2004.
1. I have got the home loan when I was in India and I have set up auto debit option on my Savings A/C to pay monthly EMI'S for this. I did not claim tax exemption on this so far because I don't have any other income in India to get the tax benefit. Can I show this on my tax returns from this year on wards even I am using India savings A/C to pay the home loan EMI'S?
2. Now I am going to occupy my Residential flat (which is bought from the above said home loan) in this month and I am going to rent out this to a private party (not relatives) starting from April 2008. Can I keep this rent income in my present Savings A/C and is it taxable or not?
3. I came to U.S in May 2006 and I have done my tax returns (Form-16) for year 2006-07 (1st April 2006 to 31st March 2007) by showing India salary only (March, April & May 2006) and I did not show the overseas salary which is taxable here. Is this correct?
4. Still my residential status is not updated on either my Savings A/C or Home Loan A/C in India (Resident Indian only) and also I am remitting the money to my own savings A/C from here every month for the purpose of my family maintenance expenses and to pay home loan EMI's. Can I continue this?
5. Also I bought a house plot in India by transferring money to my own Savings A/C from here in the year 2007 as an NRI. Is this correct?
6. As explained above, so far I have used my India Savings account only for all these transactions.
7. Is it mandatory for NRI's to perform any transactions in India using NRE / NRO A/C's only or is it optional?
8. What care needs to be taken for 2007-08 tax returns submission to correct all these?
Please suggest the best solution for this.
21 March 2008
1. You can claim from house loan EMI U/s 24(b)for Intt. part and U/s 80 C for Principal part from now onward from the taxable income.
2. You rented income from your indian house is taxable in india whatever is your status.
3.you can keep this rented income in your any account
4. it's ok that you have not shown your oversead salary which is not taxable in your return fieled in india but it is always advisable to show all your emempted income also .
5.for income tax purpose yous stastus is to be calculated form your passport not from the status showing in your bank account so u can tr. in your bank account and pays your home loan EMI
6. problem that you have purchased a house plot in india form the money in your s/b account.
7. it is not mandatory to operate your a/c from the NRI a/c only.
8. it is advisable to operate form your NRI account.
and better to consult face to face with your tax consultant
you can call me also at 09414072365
pushpendra
2. You rented income from your indian house is taxable in india whatever is your status.
3.you can keep this rented income in your any account
4. it's ok that you have not shown your oversead salary which is not taxable in your return fieled in india but it is always advisable to show all your emempted income also .
5.for income tax purpose yous stastus is to be calculated form your passport not from the status showing in your bank account so u can tr. in your bank account and pays your home loan EMI
6. problem that you have purchased a house plot in india form the money in your s/b account.
7. it is not mandatory to operate your a/c from the NRI a/c only.
8. it is advisable to operate form your NRI account.
and better to consult face to face with your tax consultant
you can call me also at 09414072365
pushpendra
22 March 2008
Thanks a lot Pushpendra for your fast response and accurate information.
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