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Mahesh Padmanabhan  |115 Answers  |Ask -

Tax Expert - Answered on May 26, 2023

Shailendra Question by Shailendra on Apr 07, 2023

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

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Hardik Parikh  | Answer  |Ask -

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

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
Latest Questions

Anu Krishna  |458 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Jun 03, 2023

Asked by Anonymous - Jun 02, 2023
I am a 45 years old Indian living in the US for the past 10 years with the family. Despite having a steady job and a pay which typically is considered high, I end up spending more than my income. My wife also works full time with good pay as well but she thinks it's my responsibility to provide and she just saves all her money in her own accounts. We have multiple properties on both our names including cars but only I pay. I pay for groceries, bills, travel everything. On discussing about the expenses, which I have done multiple times so far, she says I should be ashamed to expect money from a woman. If this continues, I will reach retirement age kind of broke I feel. Also, I will spend sleepless nights thinking about finances until then. Please advice.
Ans: Dear Anonymous,
Like in any partnership, marriage is one such partnership where everything is usually shared. But I do know of couples, where they mutually agree that one partner takes care of the bills and the other education etc.
In your case, your wife has been saving up and you have been bleeding dry of your finances.
But why exactly are you spending more than your income? Financial mismanagement? Maybe that's why your wife is worried that it might happen to her portion of the income too?
Having said that, I guess your wife also needs to move past the belief that the Man is solely responsible for bringing money home. By that logic, she should never have worked, right?

Since she is working as well, she can contribute towards the family to the extent it can help but it is also imperative that as a woman she keeps some finances saved as a back-up for herself. It provides a good safety blanket for a woman since she possibly feels that you are spending more than what you earn.
It's up to you to bring about the subject without her feeling that you are out to spend all her money. So, you really need to start with managing your finances better...I am sure things will get better from thereon...

All the best!

Anu Krishna  |458 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Jun 03, 2023

Hi Anu, I hope you're doing well. I'm a 24 year old girl working as a software engineer. I was in love with a boy in long distance relationship and I met him only once. We both had great understanding, respect on each other. It was all good between us. On February 2023, he called me one day saying that he wants to tell his parents about our love matter. I said okay and asked him what he wanted to do if his family disagrees. He said that he'll wait until his family approves. I was okay with it and he informed to his family. But things started changing after he talked with his family. He wanted to break up with me. I told him many times that I wanted to be with him and don't want to break up. But, he didn't agree. Eventually, we stopped talking with each other. It was hard for me to move on but after few months, i finally decided to move on with my life. Then suddenly he messaged me saying that he wants to get back with me. I didn't agreed as I lost my trust on him. He even informed his family about getting back with me and they were okay with it. He wants to marry me. But, now the problem is I still like him, but I lost trust in him. I wanted to give him a chance but I'm afraid because of past break up with him. I'm confused about what should I do? Anu, can you please suggest me about giving him a chance or moving on with my life?
Ans: Dear Mahi,
Thank you for asking. I am doing well and trust that you too will be in the same space as well.
When what he has done has broken your trust, it is difficult to get it back... he has come back, but you are perhaps thinking: what if he pulls the same stunt again? And this makes you question every move of his...

If you look at it from his point of view, he possibly also loves you but his family pressures are getting to him and he can do only that much. Yes, it would have been more 'human' to talk to you about what had happened after he spoke with his family. But he chose not to and that lack of transparency is what has thrown you off...perhaps, he isn't all that mature emotionally or feels that he might lose you if he shares anything.

Whatever it is, your loss of trust on him is justified after the way he had behaved. If the two of you still want to give your relationship a chance, kindly do so...and clearly state to him that you have lost trust on him. Not only does he have explaining to do but he must reassure you that he will be honest with you in future. Also, give some time before committing to a marriage while you watch whether he has changed and he is consistent with what he has committed to changing. Only when you are sure, take a decision either way!

All the best!

Anu Krishna  |458 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Jun 03, 2023

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