Reward from NRI dad not taxable, however it’s a must to pay tax on revenue from it

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Q. I’m an NRI. If I reward Rs 20 lakh to my main daughter in India and if she invests it in a financial institution fastened deposit, will both of us be liable to pay revenue tax? – Wilson Furtado In accordance with Part 56(2), any sum obtained from family members is just not chargeable to tax. So, […]

Q. I’m an NRI. If I reward Rs 20 lakh to my main daughter in India and if she invests it in a financial institution fastened deposit, will both of us be liable to pay revenue tax? – Wilson Furtado

In accordance with Part 56(2), any sum obtained from family members is just not chargeable to tax. So, if this quantity is obtained as reward from a father, will probably be exempt in her hand. Additional, as per Part 64, revenue generated from this gifted quantity can be clubbed in her revenue and he or she can be required to pay tax and file the return in India if her gross whole revenue exceeds the minimal exemption restrict of Rs 2,50,000.

Q. I do F&O transactions and tax audit required. My firm’s turnover is Rs 1 lakh; brokerage and different bills Rs 4,000; revenue earlier than brokerage, taxes and bills Rs 8,000. Is tax audit obligatory in my case? —Kicha P

In case you declare revenue after brokerage, taxes and bills under 6% of turnover, then following scenario might come up:

* Tax audit can be relevant in above instance provided that the choice of presumptive taxation was opted in final yr and present yr revenue disclosed is lower than 6%.

* If presumptive taxation was not opted in final yr and books are maintained for above instance within the yr into consideration, no audit can be required even when the web revenue claimed is under 6%.

Q. TDS was deducted however not mirrored in 26AS in FY17-18. It was mirrored in FY 19-20. I used to be not taxable for FY17-18. That’s why I didn’t file my ITR for AY18-19. Can I get refund if I’m allowed to file ITR AY18-19? —Nintu Kumar

Ordinarily, TDS is to be claimed within the yr through which the revenue is obtainable to tax. You can not declare refund for TDS deducted in FY17-18 as time restrict of submitting ITR has handed. Nevertheless, you may nonetheless pursue with the jurisdictional revenue tax authority (Principal Commissioner of Earnings Tax) and the authority might grant the refund after due verification and making certain sure safeguards. Nevertheless, it should be famous that no such utility is entertained past six years from the top of the evaluation yr for which such utility made. Nevertheless, it’s possible you’ll discover it tough contemplating that it’s mirrored in FY 2019-20. Therefore, would recommend to take skilled assist on this regard.

(The author is accomplice, Ashok Maheshwary & Associates LLP. Ship your queries to fepersonalfinance@expressindia.com)

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