SC Vasudeva
Q: My son is doing job in the US on HI B visa (NRI). Apart from his salary, his company allots him some stocks. He files his tax return (of his US income) in America. He is repaying his education loan along with interest taken in America. He has interest income in India (from interest on bank savings account and interest of his deposits with our family firms which are income tax assesses and deduct TDS on interest given to my son which is then deposited as per the Income Tax Act, 1961). My son has a PAN card and regularly files his returns in India. The latest I-T return for year 2015-16 (ending on March 31, 2015) has been filed.
(a) I want to send his own money (validly declared and assessed income) i.e. funds lying in his savings bank account (NRO & NRE), LIC savings amount, PPF amount to him in the US. What is the procedure to send the money to him?
(b) How much amount (the money being his own and validly declared and assessed income) can be sent to him from India to America?
(c) What is the position of the money when sent form his own NRO/NRE bank savings account from India to America after the passage of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015?
(d) My son is an NRI & wants to purchase an apartment (immoveable property) in the US. He will be utilising this amount for purchasing it. He does not own any immovable property in the USA till now. Ashok Goel
A: Your queries are replied hereunder:-
(a) Your son who is a non-resident Indian can remit a sum of $1 million per financial year (April–March) out of his NRO account in which the amount of his taxed income and proceeds of his savings stand deposited. This is permissible in accordance with the Master Circular dated July 1, 2015 issued by the Reserve Bank of India in respect of NRO accounts. Deposits in the NRE account can be remitted without any limit.
(b) The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 does not apply to an NRI.
(c) The money so remitted can be utilised by him for purchasing an apartment in the US.
Q2: I had retired from bank’s service in January 2014. My basic pay was increased consequent to the wage revision effective from November 2012. While paying arrears of 15 months in July this year, the bank has deducted additional provident fund (PF) of Rs 33,800 on the increased basic pay. Since I have retired, the bank has paid me the PF so deducted in August. Can I claim rebate on this amount under Section 80C? KP Sharma
A: You can claim a deduction in respect of the provident fund contribution under Section 80C of the Income Tax Act, 1961, (The Act) against the arrears of pay received this year. The deduction shall be admissible against the income for the financial year 2015-16 within the limit of Rs 1,50,000 specified under Section 80C.
Q3: The details of “Exempt Income” are required to be mentioned against Schedule E1 of Form ITR-2. Advise whether the interest on a PPF A/c which is credited in the account at the end of financial year and not paid in cash is required to be shown or not keeping in view the relevant instructions attached with the Form which say that the details may be filled in the cash basis unless there is any requirement/provision to declare them on the accrual basis. Rajiv Kumar
A: The column relating to ‘Exempt Income’ in the return form should indicate the amount of interest credited in the PPF Account as the same forms part of exempt income.
Q: My son is doing job in the US on HI B visa (NRI). Apart from his salary, his company allots him some stocks. He files his tax return (of his US income) in America. He is repaying his education loan along with interest taken in America. He has interest income in India (from interest on bank savings account and interest of his deposits with our family firms which are income tax assesses and deduct TDS on interest given to my son which is then deposited as per the Income Tax Act, 1961). My son has a PAN card and regularly files his returns in India. The latest I-T return for year 2015-16 (ending on March 31, 2015) has been filed.
(a) I want to send his own money (validly declared and assessed income) i.e. funds lying in his savings bank account (NRO & NRE), LIC savings amount, PPF amount to him in the US. What is the procedure to send the money to him?
(b) How much amount (the money being his own and validly declared and assessed income) can be sent to him from India to America?
(c) What is the position of the money when sent form his own NRO/NRE bank savings account from India to America after the passage of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015?
(d) My son is an NRI & wants to purchase an apartment (immoveable property) in the US. He will be utilising this amount for purchasing it. He does not own any immovable property in the USA till now. Ashok Goel
A: Your queries are replied hereunder:-
(a) Your son who is a non-resident Indian can remit a sum of $1 million per financial year (April–March) out of his NRO account in which the amount of his taxed income and proceeds of his savings stand deposited. This is permissible in accordance with the Master Circular dated July 1, 2015 issued by the Reserve Bank of India in respect of NRO accounts. Deposits in the NRE account can be remitted without any limit.
(b) The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 does not apply to an NRI.
(c) The money so remitted can be utilised by him for purchasing an apartment in the US.
Q2: I had retired from bank’s service in January 2014. My basic pay was increased consequent to the wage revision effective from November 2012. While paying arrears of 15 months in July this year, the bank has deducted additional provident fund (PF) of Rs 33,800 on the increased basic pay. Since I have retired, the bank has paid me the PF so deducted in August. Can I claim rebate on this amount under Section 80C? KP Sharma
A: You can claim a deduction in respect of the provident fund contribution under Section 80C of the Income Tax Act, 1961, (The Act) against the arrears of pay received this year. The deduction shall be admissible against the income for the financial year 2015-16 within the limit of Rs 1,50,000 specified under Section 80C.
Q3: The details of “Exempt Income” are required to be mentioned against Schedule E1 of Form ITR-2. Advise whether the interest on a PPF A/c which is credited in the account at the end of financial year and not paid in cash is required to be shown or not keeping in view the relevant instructions attached with the Form which say that the details may be filled in the cash basis unless there is any requirement/provision to declare them on the accrual basis. Rajiv Kumar
A: The column relating to ‘Exempt Income’ in the return form should indicate the amount of interest credited in the PPF Account as the same forms part of exempt income.
