Is TCS relevant if NRIs switch the proceeds of property sale?

Can non-resident Indians (NRIs) switch the proceeds of a property sale to their nation of residence? In such a case, will banks accumulate tax at supply even in any case tax dues on such sale has been cleared?

—Name withheld on request

NRIs are allowed to remit upto $1 million in a monetary yr from the stability held of their NRO (non-resident peculiar) account or from the sale proceeds of a property held in India. These gross sales proceeds should first be credited to their NRO account in India. Any tax due on such sale ought to have been duly paid by the NRI in India. In case of an NRI, TCS just isn’t relevant for cash remitted to international accounts from an NRO account.

My US-based father-in-law desires to present me a home. What would be the tax implications for me as an Indian resident?

—Name withheld on request

There isn’t any tax implication upon receiving a present from specified family members. Certain taxpayers have been included within the record of specified family members beneath the revenue tax act, the place any present acquired from them is tax free.

I work as a service provider navy officer. I used to be crusing between 1 August 2021 and 31 January 2022 within the final monetary yr (FY22). In this monetary yr (FY23), I’ve been crusing between 1 July 2022 and 30 November 2022. Can you inform me what can be the tax therapy of my revenue this yr?

—Name withheld on request

A seafarer serving on Indian ships exterior India for a interval of 182 days or extra in a yr is taken into account to be a non-resident. However, the time spent by a ship in Indian territorial waters is taken into account a interval of service in India, based on tax guidelines framed in 1990. The variety of days exterior India of Indian crew engaged on such Indian ships will get counted solely from the date when the Indian ship crosses the coastal boundaries of India.

Based on the data supplied by you, it appears you may have spent 153 days in India within the FY 2022-23, in such a case it’s possible you’ll be a resident or not ordinarily resident in India for tax functions.

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

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Updated: 19 Jul 2023, 10:44 PM IST