Juhi Agrawal (Bcom, CA Final) (125 Points)
11 June 2012Hi everyone,
I have qury pls try to solve it as soon as possilbe
My brother earning in US and transmittes money in NRE account in India.He also invest in Mutual funds in India thru the same NRE account. During the year he also have some STCG and LTCG. So my query is whether his STCG n LTCG incomes be availed as cliam in 80C. And the income he transmitts in India, where shud the asme be shown while filling income.
Please help as soon as possible.
Regards
Juhi Agrawal
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 11 June 2012
Transmission of income to India from US does not amounts to income in India. Income is chargeable to tax only once & at it's source. As your brother is an NRI, so only the income earned wud be chargeable to tax. No benefit u/s 80C can be taken. the LTCg & STCG wud be chargeable to tax flat at the applicable rates.
Juhi Agrawal
(Bcom, CA Final)
(125 Points)
Replied 11 June 2012
Hi Giridhar,
One thing more his STCG & LTCG is below the basic limit of Rs 1.8lacs so ITR will be filed but no tax wud be liable na?
Juhi Agrawal
(Bcom, CA Final)
(125 Points)
Replied 11 June 2012
Hi Giridhar,
One thing more his STCG & LTCG is below the basic limit of Rs 1.8lacs so ITR will be filed but no tax wud be liable na?
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 11 June 2012
Dear Juhi,
LTCG & STCG are chargeable @ flat RATE OF 20% & 15% even if there is no other income. However if there is any other income whihc is below the exemption limit, then the provision of section 112 would be applicable & LTCG would be calculated accordingly.
Juhi Agrawal
(Bcom, CA Final)
(125 Points)
Replied 11 June 2012
Dear Giridhar,
a last query..just have gt confused
just take an example like have sufferred lost of rs. 5000 as LTCG for investment in various mutual funds & STCG is rs. 40000 and other source income is int on sb Rs 1000
Here the ITR wud be filled as follows na?
Rs 5000 will be taken as carry frwrd loss
Rs 41000 wud be taken as income on which no tax wud be liable bcoz its under basic exemption. Cant claim 80c deduction
Correct me if im wrong
Varuna
(CA Student)
(102 Points)
Replied 11 June 2012
You are right. but since the income doesnt exceed the initial exemption in this case, so why put 80C deductions?
CAclubindia
