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TDS Refunds
Posted: Sat Jun 02, 2007 8:25 am
by mohanlatha
Hi,
I am an NRI and I have various FDs with ICICI Bank. They collect almost 1/3rd as TDS. Is there a way to get a refund of this amount ? I don't have a PAN yet.
TIA
KNM
TDS Refunds
Posted: Tue Jun 05, 2007 5:43 pm
by lsvenkat
Hi
You need to file your INCOME TAX RETURN in order to get a refund. And to file an Income Tax Return you need a PAN Number. Therefore without a PAN you cannot get an INCOME TAX Refund on TAX DEDUCTED SOURCE. For that matter you cannot any sort of refund from INCOME TAX DEPARTMENT without a PAN.
Now a days it is easy even for NRI to get PAN [even while residing abroad]. There are some people on this forum who have done it. It is desirable to have a PAN and in some cases mandatory, For e.g
1) For opening a Demat Account [for investing in Shares]
2) Investing in Mutual Funds
3) For Selling/Buying Property above a particular value
Contrary to popular belief, having a PAN does not mean one has to file IT Returns. Even if your income in a particular financial year is below taxable limit you need to file your INCOME TAX RETURN to be able to get a refund for the TAX DEDUCTED AT SOURCE.
Regards
Venkat
TDS Refunds
Posted: Fri Jun 08, 2007 11:27 pm
by RRK
LS,
good to see you sticking around to advise people on Indian taxation.
btw, how much a C.A. in Chennai charge for a simple I.T return to claim refund ?
TDS Refunds
Posted: Thu Nov 29, 2007 6:53 am
by iluvdes
Friends I have a couple of questions from all of you
Now suppose I have transfered 40 lakhs to my Indian bank account from the US before r2i ing. This is a NRE account. Now I r2I and take up a job which pays me 10 lakhs pa.
My questions
1) I understand that after I land in India, I will have to change the status of my account from NRE to resident? Is this correct? If so, within how much time do I need to do this?
2) Now suppose 6 months later, I have to buy an apartment in India for 40 lakhs. I pay money from my account (which is now converted to resident status). Will the tax authorities bother me asking me how I got this money? Or in other words, do I need to submit any documents when I r2I that I am getting this amount of money to India?
3) Lets suppose the seller of the 40 lakh flat is asking for 50:50 black white ratio. Can I simply pay him 20 lakhs by cheque and withdraw 20 lakhs in cash from my account and hand that over in cash? Will that create any problem for me with the tax authorities?
Thanks in advance for all your advise,
TDS Refunds
Posted: Thu Nov 29, 2007 11:55 am
by RRK
iluvdes;61038Friends I have a couple of questions from all of you
Now suppose I have transfered 40 lakhs to my Indian bank account from the US before r2i ing. This is a NRE account. Now I r2I and take up a job which pays me 10 lakhs pa.
My questions
1) I understand that after I land in India, I will have to change the status of my account from NRE to resident? Is this correct? If so, within how much time do I need to do this?
2) Now suppose 6 months later, I have to buy an apartment in India for 40 lakhs. I pay money from my account (which is now converted to resident status). Will the tax authorities bother me asking me how I got this money? Or in other words, do I need to submit any documents when I r2I that I am getting this amount of money to India?
3) Lets suppose the seller of the 40 lakh flat is asking for 50:50 black white ratio. Can I simply pay him 20 lakhs by cheque and withdraw 20 lakhs in cash from my account and hand that over in cash? Will that create any problem for me with the tax authorities?
Thanks in advance for all your advise,[/quote]
1. within reasonable time the account need to be converted. Even though the law does not put a limit on the number of days, 2-3 months, is not unreasonable.
2. As long as the payments are made from bank accounts, no one will bother you. No documents need to be submitted, if there are any questions later, you may show your NRI bank statements.
3. IT officer have right to question what you did with the huge cash that you drew from the bank account. It is up to you to explain it. Remember the seller is not going to support you if you say, you paid the money to the seller. He is evading taxes by taking the sum in cash.
You may ask then how people are buying Real Estates. The seller will use this "unaccounted" money again to buy another Real Estate. This is how the parallel economy functions.