Tax treatment for non resident indian

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 October 2012 Sir,
Mr. X, a NRI, comes to India and purchases gold bar or invests in any fixed deposit or mutual funds then explain me whether he is liable to pay any tax to indian government at his earnings from such an investment. such earnings are remitted to his bank account in foreign.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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17 October 2012 Since the income arises in India, the income is taxable in India and accordingly Mr. X will have to pay tax on the same in India.

Querist : Anonymous

Querist : Anonymous (Querist)

19 October 2012 Thanks!
But since he doesn't live in India and comes to India for 15 days only every year, he doesn't file his return in India.

Also, inform me if there is any limit of purchasing gold bars in India and any taxability arising at the time of purchasing of such gold bars.

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Querist : Anonymous

Querist : Anonymous (Querist)

19 October 2012 Should he file the return of his income in India? and if he do so, would he be liable to file his return every year?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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21 October 2012 1. He should file his return if his income from India exceeds the exemption limit or TDS has been deducted and he wants to claim refund of the same.

2. He is required to file a return only if his income exceeds the exemption limit or he wants to claim refund of TDS.

Otherwise he is not required to file a return.

MEHUL SHAH

MEHUL SHAH (Expert)
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30 March 2013 If TDS is deducted by Bank say on Fixed Deposit, then he can file his return of income in case he wishes to apply beneficial rate as per DTAA and claim refund.