My salary income annually is Rs 14 lakh. I own two houses, of which I stay in one and the second is let out. I pay taxes from rental income. Do I still need to pay wealth tax?
Under wealth tax, the definition of assets includes building or land appartenant thereto. One house property belonging to an individual, whether self-occupied or let out, is exempt from wealth tax. Also, in case any property is let out for a minimum period of 300 days in the relevant financial year, then this shall not be considered an asset. Hence, your house is out of the purview of wealth tax and the other house shall also not be subject to wealth tax, provided it's let out for a minimum period of 300 days in the financial year.
I am 73 and a dormant partner in my son's holding company abroad. Will I be required to file a foreign asset disclosure form?
Reporting of foreign assets would apply to any individual whose residential status in the relevant financial year is 'resident and ordinarily resident' (ROR). In case you are ROR, you have to report any financial interest you have in any foreign entity and any other asset held by you outside India while filing your India income tax return for that financial year.
Can I file my income tax returns before July 31 or is July 31 the only day? Which is better, e-filing or offline filing?
The due date for filing the tax return depends on your source of income and audit and certification requirement under the laws. Assuming you are not a working partner of a firm or proprietor of the firm whose accounts are required to be audited or such proprietary firm has not entered into international transactions with associated enterprises or specified domestic transactions with specified person, the due date applicable to you would be July 31. You can file your tax return on or before July 31. In the current scenario, e-filing is a better option, as you can track the status of refund or rectification without actually visiting the tax office. Further, it would be mandatory for a tax payer to file his/her return of income electronically where:
|Taxable income exceeds Rs 500,000;
|Treaty relief or credit for tax paid in a foreign country has been claimed in the financial year; or
|Taxpayer is ordinarily resident in India and has assets located abroad or signing authority in any account located outside India.
Under wealth tax, the definition of assets includes building or land appartenant thereto. One house property belonging to an individual, whether self-occupied or let out, is exempt from wealth tax. Also, in case any property is let out for a minimum period of 300 days in the relevant financial year, then this shall not be considered an asset. Hence, your house is out of the purview of wealth tax and the other house shall also not be subject to wealth tax, provided it's let out for a minimum period of 300 days in the financial year.
I am 73 and a dormant partner in my son's holding company abroad. Will I be required to file a foreign asset disclosure form?
Reporting of foreign assets would apply to any individual whose residential status in the relevant financial year is 'resident and ordinarily resident' (ROR). In case you are ROR, you have to report any financial interest you have in any foreign entity and any other asset held by you outside India while filing your India income tax return for that financial year.
Can I file my income tax returns before July 31 or is July 31 the only day? Which is better, e-filing or offline filing?
The due date for filing the tax return depends on your source of income and audit and certification requirement under the laws. Assuming you are not a working partner of a firm or proprietor of the firm whose accounts are required to be audited or such proprietary firm has not entered into international transactions with associated enterprises or specified domestic transactions with specified person, the due date applicable to you would be July 31. You can file your tax return on or before July 31. In the current scenario, e-filing is a better option, as you can track the status of refund or rectification without actually visiting the tax office. Further, it would be mandatory for a tax payer to file his/her return of income electronically where:
|Taxable income exceeds Rs 500,000;
|Treaty relief or credit for tax paid in a foreign country has been claimed in the financial year; or
|Taxpayer is ordinarily resident in India and has assets located abroad or signing authority in any account located outside India.
The views expressed are the expert's own. Send your queries to yourmoney@bsmail.in
Today, Homi Mistry, tax partner at Deloitte, Haskins & Sells, answers your queries