How are NRIs taxed on rental revenue?

My son is a non-resident Indian (NRI) with a small rental revenue of ₹30,000. Neither he nor his tenant can afford a chartered accountant to submit the tax deducted at supply (TDS) on this revenue to the revenue tax division. Can he pay TDS in direction of the lease to the division as advance tax?

—Name withheld on request

As per revenue tax guidelines on TDS, the deductor is obligated to deduct TDS and deposit the identical with the federal government utilizing the prescribed kind and timelines.

In case, the whole revenue of the deductee is lower than taxable restrict, the deductee can search a low TDS deduction or zero TDS deduction certificates from an revenue tax officer. Based on this, the deductor might not deduct any TDS.

I’ve been working within the US since 2002 and sending cash to my non-resident exterior (NRE) account in India. Will tax be levied on this? Should I file tax returns in India?

—Name withheld on request

Non-residents are allowed to switch cash to NRE accounts held in India.

Deposits made to NRE accounts will not be taxable and neither is the revenue earned on such deposits made taxable in India.

I’m an NRI. Can I spend money on tax financial savings fairness mutual funds?

—Name withheld on request

ELSS, or fairness linked financial savings scheme, permits taxpayers to say tax profit in accordance with part 80C of the revenue tax act. A deduction of ₹1.5 lakh is accessible beneath part 80C. NRIs are allowed to spend money on ELSS supplied they meet the know your buyer (KYC) and different compliance necessities of the fund home.

Archit Gupta is founder and chief government officer, Clear.in.

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