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Mahesh

Mahesh Padmanabhan  |120 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   |94 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.
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Ravi

Ravi Mittal  |173 Answers  |Ask -

Dating, Relationships Expert - Answered on Apr 22, 2024

Asked by Anonymous - Apr 20, 2024Hindi
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I am a 26 years old girl completed my studies, trying to get a job, 2 years back I fell in love online with a man of 32 years old, we have not met yet physically. He is working on a very small salary in a village i.e. his hometown. He can't get a good government job or private job now due to lack of experience and age. We love each other a lot with all our flaws. My family is strictly against it due to caste difference, low salary, he lives 1600 km away, background differences. Overall they don't trust him and our love and are emotionally blackmailing me to get married with someone they choose. And the thought alone of leaving him makes me sad
Ans: Dear Anonymous,

I am sorry for the challenges you are facing. I understand how difficult it must be to leave a person you love. Having said that, I would also like to point out that living a decent life is not cheap. You are currently unemployed and your partner has a low salary; it will not be sustainable in the long run. I am not asking you to leave him and marry someone else; all I am suggesting is don't rush. Take the time to find a decent job and ask your partner to do the same. Once you think you both are earning a good amount of money, put forth the idea of your marriage again to your parents.

Now the most important thing, you have met him online and never met him in real life. Is it worth taking this kind of risk before verifying everything in person? I am sure he is genuine but there is no harm in cross-checking. And I can't really blame your parents for having their doubts. Please don't rush. One wrong decision can ruin the rest of your life. Take your time, think this through, and meet him in person, most likely in your city and in a public space. Do a thorough background check. It is easy to get fooled when you are in love.

Again, please don't rush. You have your whole life ahead of you.

Best Wishes
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Ravi

Ravi Mittal  |173 Answers  |Ask -

Dating, Relationships Expert - Answered on Apr 22, 2024

Asked by Anonymous - Apr 21, 2024Hindi
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Hi, I am 25+ years of old. Earning a handsome ammount of money arround 1lakh. I am a introvert, kind of kanjus you can say. I don't have any gf. I had one one one-sided relationship but because of low self confidence I didn't able to express my feelings. I don't feel myself as a ugly person but I am over waight, facing hair fall recently that's why I lose confidence approaching girls. I tried few dating apps but use. As I am a introvert I don't like to go to parties but definitely become comfortable after knowing the other person. Currently in Bangalore but being from a remote area I don't feel comfortable approaching a girl. What should I do.
Ans: Dear Anonymous,

I understand how you are feeling. First of all, you are not alone in this. Secondly, it's time you recognize how much you have achieved in life. Kudos to that.

Now, coming to your concern, being an introvert is not an issue, though it comes with its own set of challenges. I understand that you feel shy when it comes to talking to women. That's where dating apps come in. You have seen no results on them; I hear you. But give it another try, but this time, with a fool-proof strategy. First off, write an appealing bio. It's equivalent to writing a cover letter- you put forward your best attributes and convince people why they should date you. You can mention your achievements, you can be honest and disclose that you are an introvert, mention what you have to offer as a partner and don't forget to mention what you are looking for in your partner. This would give your potential matches a concise idea of you and also help attract the right people. Second, display image matters. While I am not encouraging you to put up an over-edited picture hiding your imperfections, do not put up the worst one either. Make sure it's recent, decent, and of you and you alone, and not in a group. Third, if you like somebody, don't be afraid to send a message. You are not committing to them, nor do you have to see them in person. Leave a message, interact, only if things go well, meet in person. There's no rush and no prior commitment. Fourth and the most important one, be patient. The right match can take a while but when you do find them, it will be worth the wait.

Best Wishes!
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Sushil

Sushil Sukhwani  |306 Answers  |Ask -

Study Abroad Expert - Answered on Apr 22, 2024

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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