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| Q: |
Should I buy life insurance only for tax benefits? |
| Asked By: |
Serpent |
| A: |
Buying life insurance for tax benefits is not the right way either for life insurance or for your tax planning exercise. If you seek to invest for only tax planning, you have a plethora of options available today ranging from bank fixed deposits to equity linked savings schemes. You may opt for any one of these. Buy life insurance only to the extent you need life insurance coverage. |
| Q: |
hi ,i m dhaval patel studying in australia...my question is i m here on student visa n havent got the permanant recidency yet....so if i send money to india doesnt metter how much it is!!how is the income tax structure applied on that??n still these money sent to india are already paid tax in australia.... thanks... |
| Asked By: |
dhaval |
| A: |
Hello Mr. Dhaval Patel
Pleased to acknowledge your query.
You will be glad to know that the Income Tax Structure is based on Residential Status, which is determined on the basis of the number of days of stay in India.
Hence, you could send us details of the number of days stay in India of the past four years in excel sheet in order to enable us determine your residential status.
Further, you could avail the benefit of Double Tax Avoidance Agreement(DTAA) between India and Australia to claim rebate for taxes paid in Australia. This rebate would depend upon the provisions of the Agreement (treaty).
You will appreciate that based on the information provided, appropriate guidelines have been proposed.
Please do not hesitate to get in touch with us, for any further requirements.
Sanjeev Kamdar |
| Q: |
During FI 2007-2008, I purchased an NSC(Rs 50,000/-) and a Fixed Deposit(50,000/-) towards investments. However I could not notify my employer timely about this and the same is not reflecting in my Form-16. Now that I want to file the return online, if I show these 2 investments, a refund amount comes out to be Rs 26,80/-
Q1) Will my bank(specified in the list) account be credited by this much amount from Govt. of India ?
Q2) Do I need to submit the proofs of these two investments; if yes then to whom & how ?
Thanks |
| Asked By: |
Nipun |
| A: |
Dear Sir
Pleased to acknowledge your query.
You will be glad to know that you could mention these investments in your return and claim refund. Ideally refund could be received within four to six months.
Further, the proofs for the investments need not be attached as per the new rules. It can be submitted to the Income Tax department as and when called for and if at all called for by the department.
You will appreciate that based on the information provided, appropriate guidelines have been proposed.
Please do not hesitate to get in touch with us, for any further requirements.
Sanjeev Kamdar
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| Q: |
I want to plan retirement. so tell which funds i shud put my money. i want tips on hot scrips also. Plsss help |
| Asked By: |
DubaiNri |
| A: |
For your retirement (assumed to be after 10-15 years), you can choose to invest your funds in good equity diversified funds or even select sectoral funds, based on your financial planner's advice. Longer time frame would help you reap the benefits out of these funds. Investment in hot scrips is certainly not the way to go for your retirement planning. Thanks, Arvind Rao |
| Q: |
I live in US with son. But I have business in India so I go to India for 8 months. I bought overseas Medical policy for myself and spouse. Our age is around 60 yrs. The premium we are paying is high. Is there any tax benefit that I can avail of on my overseas mediclaim? |
| Asked By: |
Ganesh |
| A: |
As per the Income Tax provisions, rebate on overseas medical premium cannot be claimed.
Hence, we regret to inform that you cannot claim any benefit for overseas mediclaim. However, rebate for tax liability on overseas income computed, while filing your income tax return in India, can be claimed as per relevant Double Tax Avoidance Agreement(DTAA) between India and U.S.
You will appreciate that based on the information provided, appropriate guidelines have been proposed.
Please do not hesitate to get in touch with us, for any further requirements.
Sanjeev Kamdar |
| Q: |
I am US citizen now. But visit India very often since I have family. I have decided to take up a lucrative employment offer there. I?ll be living in India for 4 months. So wanted to know about my status and the money I have saved here in US. How much tax will I have to pay? How do I transfer my money to India? I want to keep part of the money in a saving account here too |
| Asked By: |
Goban |
| A: |
You will be glad to know that taxation in India is based on your residential status. And residential status is based on the number of days stay in India. Hence send us details mentioning your stay in India for the last four years in order to enable us to determine your residential status.
Based on that and your plans about future stay in India, we could plan transfer of funds from U.S. to India.
You will appreciate that based on the information provided, appropriate guidelines have been proposed.
Sanjeev Kamdar |
| Q: |
how safe is to invest in mutual funds........does the market guarantee atleast your principal amount is safe....... |
| Asked By: |
vidushi |
| A: |
Investment in mutual funds is only as safe as investment into equity shares. It carries the market risk with itself and does not offer any guarantee on the principal amounts. However, mutual funds could be relatively safer than direct investment for the fact that your funds are being managed by professional fund managers, who would enter and exit the shares as per their views.
We do have certain mutual funds that are oriented towards capital protection too. Thanks, Arvind Rao |
| Q: |
Is it better to invest in mutual funds or actual gold |
| Asked By: |
vidushi |
| A: |
Investment in gold mutual funds offers convenience over actual gold, in terms that you do not have to keep physical gold at your house or in bank lockers, but at the same time enjoy the appreciation in gold commodity.
However, if you wish to use gold for consumption purposes, then you have to buy physical gold. Thanks, Arvind Rao |
| Q: |
I have taken joint home loan with my father and my father is owner of that property.
One important thing is I am working in Bangalore while property is in Lucknow, UttarPradesh
Please tell me whether I will get tax benefit.
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| Asked By: |
Yogendra |
| A: |
Dear Yogendra
You will be glad to know that Income tax liability is determined on total income from all sources for a resident Indian. Hence, in your particular case, irrespective of the work place and location of the property, you may note that, if the property agreement mentions both names i.e. yours and your father's name and if the loan installment is paid from your account, then, you can avail tax benefit in respect of housing interest and principal repayment.
Sanjeev Kamdar |
| Q: |
I transferred $5000 from US for family maintenance in my NRE account in India. I pay taxes here in US.
I also file tax-returns in India. How can I claim tax-return (while filing tax-returns in India) for the INR amount equivalent of $5000 that I transferred to India to my NRE account.
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| Asked By: |
US |
| A: |
Hello Nilesh Ghubade
As we understand from your query, you have transferred U.S. tax paid income to India for family maintenance. Thereafter, you are interested in claiming deduction in your Indian Income Tax return for the family maintenance expenses.
You may please note that such expenses do not qualify for deduction as per the provisions of the Income Tax act in India.
You will appreciate that based on the information provided, attempt has been made to provide clarifications, in case of any further doubts , please do not hesitate to get in touch with us.
Sanjeev Kamdar |
