Recently, in a decision, the Mumbai ITAT (an Appellate Authority for Income Tax Litigation Matters in India) has held that just receipt of Salary Income by an employee (working in a Ship plying on Innternational routes, Run by Singapore based Shipping Company), in NRE Bank Account in India, will not trigger a tax incidence in India.
The government recently released draft guidelines for its ambitious gold monetization scheme that aims to cut down gold imports in the country. The guidelines have been notified nearly three months after the scheme was announced by Finance Minister Arun Jaitley in the Union Budget.
CBDT has notified new Income Tax Return Forms for AY 2017-18 (i.e. FY 2016-17). Some of the salient features/changes of these forms are:
In India, Taxation on Gift was regulated by the Gift Tax Act 1958. As per the Gift Tax Act 1958, the donor was required to pay Gift Tax on all gifts in excess of a specified amount. However, with effect from October 1, 1998 (By Honourable Finance Minister Shri Yashwant Sinha), Gift Tax Act got demolished and all the gifts made on or after this date were free from tax.
Scheme of LRS
- Foreign Exchange Management Act 1999 (FEMA) restrict the drawal of forex except to the extent allowed by its Regulations.
- Under LRS, Indian Residents are allowed to remit prescribed amount (Per FY) of forex outside India to anyone for all permissible capital account transactions, without any prior approval of RBI. They just need to contact an Authorised Person/Dealer for this (i.e. Full Fledged Money Changer, Banks).
There is a common practice in India to purchase/transfer the assets in the wife name e.g. purchasing of immovable property in the wife name, purchasing of shares/jewellery in the wife name etc.. There can be various reasons for the same e.g. prescribed rate of stamp duty is lesser in case of females etc. Though there can be other justified reasons to buy the assets in the wife name, however, another ulterior motive also remains i.e. Tax Avoidance.
It is a tax imposed by the Government of India on any person who earns income in India. This tax is levied on the strength of an Act called Income tax Act which was passed by the Parliament of India.
Income earned in India is not limited to income earned within the geographical limits or boundaries of the country. Certain incomes are also deemed to have been earned in India although they may have been earned outside the country.
Any Individual or group of Individual or artificial bodies who/which have earned income during the previous years are required to pay Income tax on it. The IT Act recognizes the earners of income under seven  categories. Each category is called a Status. These are Individuals, Hindu Undivided Family [HUF], Association of Persons [AOP], Body of individuals [BOI], Firms, Companies, Local authority, Artificial juridical person.
1. What is the role of RBI in relation to FEMA?
FEMA mandates main functions of RBI as:
NRI/PIO is a branch of PROI. Hence, an NRI/PIO is a PROI. Since, NRI/PIO name itself contains the word ‘India’, therefore, prima facie it can be said that to qualify as NRI/PIO (under various FEMA Regulations) there should be some Indian connection.
NRIs/PIOs are allowed to invest in India in following two ways:
NRITAXSERVICE.IN, a firm of professionals, set up with its Head Office in New Delhi, India, and associate offices across India. We also have our associate across the world in various countries. We assist the non-residents in their financial affairs in India as well abroad. We provide advisory and compliance services encompassing the entire gamut of Taxation (Income Tax, Wealth Tax, DTAA, Custom etc), Foreign Exchange Law (RBI/FEMA, FCRA, Companies Act etc). Additionally, we also provide a number of support services to our clients e.g. bank matters, property matters, investment matters, repatriation services, starting a business, sale-purchase of immovable property, family office services etc.