Biraj (Proprietor) (103 Points)
02 December 2010Dear All,
A Non-Resident having Term Deposit in Nationalised bank. Amount brought in foreign currency.
and he has other income of Short Term Capital Gain (U/s.111A - 15%)..
TDS deducted on STCG at 15% under saction 195.
I have two issues:
1. Whether interest earned on FD are taxable to non resident?
2. Can STCG income(Special Rate Income) can be shifted to Basic Exemption limit of Rs.160000/- in case of NR also?
Reply with relevent saction or other things..
Thanx
C.A. LINESH PATIL
(CA)
(910 Points)
Replied 02 December 2010
1. Yes its chargeable to tax @ 20%
2.No proviso to section 111A does not applicable on Non-Resident.
Biraj
(Proprietor)
(103 Points)
Replied 03 December 2010
Dear linesh,
If 20% tax should be there then why bank never deduct TDS under section 195 in case of Non-Resident in NRE Deposit.
As section 195 applies to any Sum
CA PARAS BAFNA
(Practising CA )
(33428 Points)
Replied 10 December 2010
Dear Biraj,
Interest on NRE A/c is Exempt U/s 10(4)(ii).
CA PARAS BAFNA
(Practising CA )
(33428 Points)
Replied 10 December 2010
Can STCG income(Special Rate Income) can be shifted to Basic Exemption limit of Rs.160000/- in case of NR also?
No.
This income is liable to be taxed at Special Rates.
Only residents are allowed to do so.
CAclubindia
