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Mahesh

Mahesh Padmanabhan  |124 Answers  |Ask -

Tax Expert - Answered on May 26, 2023

Mahesh Padmanabhan has specialised in payroll, personal and corporate taxation for more than two and a half decades, enabling him to provide practical, realistic and correct advice to his clients.
He is a member of The Institute of Chartered Accountants of India and has a degree in cost accounting from the Institute of Cost Accountants of India.
He is also a qualified information systems auditor. ... more
Shailendra Question by Shailendra on Apr 07, 2023Hindi
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My daughter studying in Germany was outside India in 2022-24 for more than 182 days. She has income from there from parttime job and paid Internship. In India she has Income share investment capital gain and dividend. How she will be taxed. Should I change 3in 1 Saving bank account.

Ans: Hi Shailendra
Assuming that you are referring to FY 2022-23, as your daughter was outside India for more than 182 days, her income in Germany would not be taxable in India. You need to note that she should not get the income credited in India in the first instance. She could deposit the income in Germany first and then remit it to her NRO or NRE account in India.

She needs to get her savings account in India redesignated as NRO account
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Hardik

Hardik Parikh  |106 Answers  |Ask -

Tax, Mutual Fund Expert - Answered on Apr 07, 2023

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My daughter studying in Germany was outside India in FY 2022-23 for more than 182 days. She has income in Germany from parttime job and paid Internship. In India she has Income from share investment /MF capital gain/loss and dividend. How she will be taxed in India. Should I change her 3 in 1 Saving bank account with ICICI Direct.
Ans: Dear Shailendra,

As your daughter was outside India for more than 182 days during the financial year 2022-23, she would be considered a Non-Resident Indian (NRI) for tax purposes. I'll outline the tax implications for her below.

Income earned in Germany: As an NRI, your daughter will not be taxed in India for the income she earned in Germany through her part-time job and paid internship. She will need to pay taxes on this income according to the tax laws in Germany.
Income from share investments, mutual funds, and dividends in India: As an NRI, your daughter will only be taxed on her income that is earned or accrued in India. This includes:
Short-term capital gains on equity shares and equity-oriented mutual funds: These will be taxed at a rate of 15%.
Long-term capital gains on equity shares and equity-oriented mutual funds: Gains exceeding ₹1 lakh will be taxed at a rate of 10%.
Short-term and long-term capital gains on non-equity investments (e.g., debt mutual funds) will be taxed as per the applicable slab rates for NRIs.
Dividends: Dividends received from Indian companies will be subject to tax deduction at source (TDS) at a rate of 20% (plus applicable cess and surcharge).
Regarding your query about changing her 3-in-1 savings bank account with ICICI Direct, it is advisable to inform the bank about her change in residential status and convert the account into an NRO (Non-Resident Ordinary) account. This will help in managing the tax compliance for her investments in India.

Please note that the Double Taxation Avoidance Agreement (DTAA) between India and Germany may provide relief from being taxed on the same income in both countries. Your daughter should consult a tax professional in Germany to understand the applicable provisions and claim any benefits available under the DTAA.

I hope this information helps.

Best regards

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Moneywize

Moneywize   |181 Answers  |Ask -

Financial Planner - Answered on Mar 11, 2024

Asked by Anonymous - Mar 10, 2024Hindi
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My daughter went to Germany first time for study in June 2020. During FY 22-23 She was in India for 58 days. What is her Residential status for Income Tax for AY 23-24, Bank, Demat and income from investment?
Ans: Here's how to determine your daughter's residential status for Income Tax (AY 2023-24), Bank, Demat account, and income from investments based on the information provided:

Income Tax Residential Status:

For Assessment Year (AY) 2023-24, your daughter's residential status will likely be Non-Resident (NR).

Here's why:

• She left India for studies in June 2020, indicating she might not have met the physical presence criteria in India during the relevant financial years (FY).

To be considered a resident for tax purposes in India, an individual needs to meet at least one of the following conditions:

• Stay in India for 182 days or more in the relevant financial year (FY 2022-23).
• Stay in India for at least 60 days in the relevant financial year AND for 365 days or more during the four preceding financial years (unlikely in this case since she left in 2020).

Important Note:

It's important to consider the entire period from June 2020 to March 2023 (covering FY 21-22, FY 22-23) to determine the residential status definitively.

Recommendation:

For a more precise assessment, it's advisable to consult a tax professional as they can consider all aspects of your daughter's situation, including:

• Exact number of days spent in India during FY 21-22.
• Nature and source of her income (if any) from investments.
• Any tax residency certificate she might have obtained in Germany.

Bank and Demat Account:

• Bank: Many banks might categorise your daughter as a Non-Resident (NR) based on her stay in India.
• Demat: Similar to the bank, the Demat account might also be categorised as non-resident if it aligns with her tax residency status.

Income from Investments:

• Tax implications on income from investments (e.g., dividends, interest) will depend on the type of investment, the source (India or abroad), and the tax treaty (if any) between India and Germany.

Further Resources:

Income Tax Department - Non-Resident Individual for AY 2023-2024: https://www.incometax.gov.in/iec/foportal/help/individual/return-applicable-0

Remember, this is a general overview, and consulting a tax professional is highly recommended for specific advice tailored to your daughter's situation.

..Read more

Latest Questions
Radheshyam

Radheshyam Zanwar  |1603 Answers  |Ask -

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on May 06, 2025

Career
Dear Sir, as my son Inter bord got 91% but in Jee mains 1st attempt got 50% and 2nd attempt got 70%, but he was not eligible for Advance, and he was wrote other college exams as (IIIT Hyd + VIT+TSEAPCET) in that VIT got results as 1.20 Lakh rank and he was eligible for Round of Category of 5th for VIT-AP & VIT-Bhopal, and expecting results for IIIT Hyd and also waiting for other Exams as (COMEDK + MIT + BITS), he was sincerely trying the efforts private college entrance exams, but the results which is not satisfy for him, and getting disappoint, but I was giving the motivation for other exams and do the hard work and focus on, BITS & IIT-Hyd also very tuff and more competitive, as i need to think for the negative side, if he could not get any cut of marks, what is the next option....? I request you pls give any other alternate suggestions for which is alternate engineering university for the course of (CSE AI & ML), my son interested in CSE course only
Ans: Hello Rakesh
First and foremost, I would like to commend your son for his earnest efforts in preparing for a range of engineering entrance examinations. His dedication is commendable, even if the outcomes so far haven't aligned with expectations. As you’ve mentioned, he has not yet been able to meet the required cutoff, which understandably may lead to feelings of disappointment or frustration.
However, the journey isn't over. Significant opportunities still lie ahead with BITSAT and IIIT-Hyderabad, both of which are known to be less about difficulty and more about testing strategic thinking and conceptual clarity. It appears that your son may be facing challenges in effectively managing the vast syllabus or might not yet have identified the right approach to tackle these competitive exams. Understanding how to study smartly for such tests often makes all the difference.
It’s important to maintain a positive outlook and avoid negative assumptions at this stage. You haven’t mentioned your financial circumstances, but if your son is determined to pursue fields like Computer Science, Artificial Intelligence, or Machine Learning, and if merit-based options don’t materialize, admission through the management quota could be a viable alternative. This route is typically available in reputed private engineering colleges, though it comes with a higher financial commitment.
Before considering this option seriously, I would recommend waiting for the results of all the remaining entrance exams. At the same time, it would be wise to proactively visit a few reputed institutions to inquire about the availability of management quota seats, associated costs, and relevant terms and conditions. Many parents secure such seats early on, anticipating the challenges their child might face in clearing competitive cutoffs.
Stay optimistic, there are still several promising pathways ahead.
Follow me if you like the reply. Thanks
Radheshyam

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Dr Nagarajan J S K

Dr Nagarajan J S K   |372 Answers  |Ask -

NEET, Medical, Pharmacy Careers - Answered on May 06, 2025

Asked by Anonymous - May 06, 2025
Career
can i get admission in NFSU through jee mains score only ? because i gone on NFSU admission portal link for B.Tech-M.Tech Integrated program in Computer Science and Engineering (Cyber Security) but they asking about NFAT exam
Ans: Hi,
I apologize for any confusion, but I want to clarify that when the government asked for our support of the ONE NATION ONE CARD system, we did not accept it. Similarly, everyone is required to open a savings account at a bank, and many of us expressed our discontent. However, we can see the positive changes happening in India. If we support the government, they will reciprocate by providing benefits to the citizens.

In terms of education, the government is attempting to implement a new education policy, which has proven to be quite difficult. The education system has changed significantly before and after the pandemic. Now, the government is working on new policies that align with those of developed countries.

Therefore, we cannot expect the ONE STUDENT ONE EXAM system from the government at this time, as it is not included in the current guidelines. Each council or organization has its own set of guidelines, and synchronizing them will take time. At this moment, it is simply not feasible.

The NFAT exam is different from the JEE. In the case of the JEE, they did not notify the aspirants that they are eligible to apply for NFSU, and similarly, NFSU did not mention that JEE rank holders could also apply. Therefore, if you want admission to NFSU, you need to register and appear for the NFTA.

In the near future, we can expect the ONE STUDENT ONE EXAM system from this BJP government for the benefit of younger generations. For the benefit of postgraduate aspirants (for all courses except a few professional ones), the NTA is organizing the PGCUET exam nationwide. In this exam, you can opt for up to four different courses based on your eligibility.

A similar exam pattern is needed for engineering and medical fields as well. As I mentioned, we can expect this change; however, we, as citizens, should offer moral support for the benefit of younger generations. Unfortunately, we often do not provide this support to the government. For example, in the NEET exam, many aspirants do not follow the guidelines even when appearing for the exams.
BEST WISHES

POOCHO. LIFE CHANGE KARO.

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Dr Nagarajan J S K

Dr Nagarajan J S K   |372 Answers  |Ask -

NEET, Medical, Pharmacy Careers - Answered on May 06, 2025

Career
Hello sir I have taken a 1 year drop for neet 2025 from pw online . But now I am scoring only 300 in neet .Now i am very confused what to do should I take one more drop or chose any option. This time i want to join offline coaching and really want to work hard but afraid that the coaching centre after knowing my marks will give me their worst batch so what should i do ?
Ans: Hi Ritika,
You mentioned that you scored only 300 in NEET. While we can't make any judgments until the official results are published, I must say that a score of 300 is quite low.

If you're planning to reappear for NEET, that's a good decision! However, I understand you might be worried about the coaching classes placing you in a less suitable batch. I recommend attending for 2 or 3 days while attending the coaching just follow the below instructions.

Make a list of the subjects and chapters you find challenging. Discuss these areas with your coaching faculty and aim to ask at least 15-20 questions daily to clarify your doubts and enhance your understanding. Additionally, request tips and tricks for each chapter so that you can put in a lot of effort to reach your goal.

Alternatively, you can prepare 10 questions on your own and seek answers from your coaching faculty. If you maintain this practice throughout the course, you'll build your confidence, and the coaching staff may consider changing your group due to your proactive approach in asking questions.

Through NEET, you can also pursue other medical-related courses such as BAMS, BSMS, BHMS, BYMS, BNYS, and BDS.

If you don’t have confidence in yourself, you might consider dropping NEET and exploring other courses. However, I encourage you to take one chance and follow my suggestions.

Additionally, if you are not already practicing yoga and meditation, I recommend starting. These activities can help you concentrate better and reduce distractions while studying.

Best of luck!
POOCHO. LIFE CHANGE KARO.

...Read more

Dr Nagarajan J S K

Dr Nagarajan J S K   |372 Answers  |Ask -

NEET, Medical, Pharmacy Careers - Answered on May 06, 2025

Career
Hlo I have taken a 1 year drop in 2024 for neet but i am scoring only 300 . Now I am so confused what to do I really want to crack neet and this time i want to join offline coaching but afraid that i can do it or not Please tell me what to do
Ans: Hi Ritika,
Good decision! Offline coaching is far better than online coaching because it allows you to focus on your studies more effectively.

You mentioned that you need to crack the exam, so here are some tips on how to do that:

First, identify which subjects and chapters you find challenging and make a list. Discuss these areas with your coaching faculty. Aim to ask at least 10 questions daily to clarify your doubts and enhance your understanding.

Alternatively, you can prepare 10 questions on your own and seek answers from your coaching faculty. If you maintain this practice throughout the course, you will build your confidence.

Additionally, if you are not practicing yoga and meditation, I recommend starting. These activities can help you concentrate better and reduce distractions while studying.

Best of luck!

POOCHO. LIFE CHANGE KARO.

...Read more

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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