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Tax queries in personal files

RS (none) (298 Points)

29 July 2010

I have a few tax queries relating to my personal file.

1.I had purchased a Reliance Mutual Fund( Equity) and i redeemed it last year. STT was paid on it and its Long term capital gain..so will this income be taxable?

2. The taxable income in another file is coming to 309764(female). no advance tax was paid and there is a tds of Rs 7900. how much tax remains to be paid along with interest u/s 234a,b&c.

Kindly reply to my queries.thanks

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4 Replies

ASHISH JAIN (STUDENT) (240 Points)
Replied 29 July 2010

For the first one, the LTCG is exempt u/s 10(38), bcoz here u have paid STT for the transactions. So, it is not taxable.

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Rishab (A.C.A.) (155 Points)
Replied 29 July 2010

Second Query: Tax on Total Income 13,340 - 7,900 (TDS) = 5,440 (SAT to be paid)

You have not mentioned the F.Y so Interest cannot be calculated

Nayan (nayan1013@gmail.com) (29 Points)
Replied 15 June 2011

1. There is a consultant that has been hired, who's job descripttion is to provide training via web conferencing. He is a US citizen and Us resident, who is operating out of the US. He does not visit India for his work. Do we need to subtract TDS on his payments, or can we get away without withholding any tax, since he is not based in India nor does he come into the country for his work. The entity that pays him is in India and teh payment goes through a bank from India. Please advise.

2. There is a consultant who we are looking to hire who's job is to provide sales. He will get a fixed salary plus commissions. Again he is a US citizen and US resident, who will only operate out of the US and provide sales from the US from US companies. But the payment is made by an Indian entity, based in India through a bank in India.

For both matters, what rule applies with regards to withholding any forms of tax be it TDS or any others and to what amount.

From what I have read and understood we can get away by not paying/withholding any tax since they are US citizens & resident and based in US with no requirement to come to India due to their Job function. We may just need to obtain a NOC from the IT department.