My son is residing in an African nation. He’s a non-resident Indian (NRI) having a non-resident exterior (NRE) account in India. He invests in mounted deposits, fairness and earns dividends on shares. I wish to know if incomes dividends are taxable in India. So far as I do know, curiosity revenue for NRIs will not be taxable, however, I don’t know if dividends on shares and revenue on fairness are taxable and if an NRI is eligible for exemption restrict of ₹2.5 lakh like Indian residents.
—T.M. Karia
Dividend revenue from fairness shares of an Indian firm is taxable in India efficient FY22. For an NRI, dividend revenue shall be taxable at 20% (further cess and surcharge as relevant). This tax will probably be deducted as TDS earlier than the dividend is paid to your checking account. You may cross-test the TDS deducted out of your Kind 26AS. For a taxpayer resident in India, dividend revenue is taxable as per the charges relevant to his/her complete revenue. NRIs are eligible to say the essential exemption restrict of ₹2.5 lakh. Do bear in mind, to sum up revenue from all sources earlier than making use of the essential exemption restriction.
In case such dividend revenue is taxable within the nation of your residence, it’s possible you’ll discuss with the double tax avoidance settlement between the nation of residence and India so that you just don’t must pay tax on the identical revenue twice.
The Central Board of Direct Taxes has introduced that every one PAN playing cards that aren’t linked to Aadhaar by 30 June will probably be declared as “inoperative”. Does this apply to NRI PAN playing cards?
—A. Venkat
Please word that the deadline to hyperlink PAN with Aadhaar has now been prolonged until 30 September. In case you are an NRI and maintain an Aadhaar card, it’s necessary that you just hyperlink it together with your PAN card.
Archit Gupta is the founder and chief government officer, ClearTax.