The app allows citizens to use digital documents on their smartphones instead of physical ones for identification and sharing purposes
The Finance Bill 2019 has imposed tax on any sum of money paid or any property situated in India, transferred by a person resident in India to a person outside India, as it would be deemed to accrue or arise in India. The changes will be applied for all such transfers made on or after July 5, 2019.
Currently gifts given by Indian residents to non-resident Indians, apart from the specified list of relatives, would be claimed as non-taxable. This is because the earlier tax put the onus on the recipient of the gift to make the disclosure and pay tax. As a gift to NRIs means that income is accrued abroad, it remained outside the tax net.
But now, all gifts to NRIs will be income accruing in India and would be taxed as per the normal slab rates applicable to resident Indians. This means that the origin of the gift becomes important for tax purpose, instead of the destination of the gift abroad.
The onus will be on the recipient (the NRI in this case) of the gift to disclose such gifts received if they originate in India and then pay a tax on it.
So, if the value of the gift is above Rs10 lakh, the recipient will have to pay 30 per cent tax. The tax rate would get higher if the value of the gift, be it payment for studies or a house abroad, is more than Rs2 crore or Rs5 crore. In such cases, the highest tax rate for super rich, i.e. 35.7 and 42.7 per cent respectively would apply.
For the purpose, gift will constitute shares, property, vouchers, cash etc exceeding Rs50,000 made to anyone, apart from the specified relatives or blood relations.
While making gifts to NRIs taxable, the budget has proposed that in a treaty situation, the relevant article of applicable DTAA (double taxation avoidance treaty) shall continue to apply for such gifts as well.
This amendment will take effect from April 1, 2020 and will, apply in relation to the assessment year 2020-21 and subsequent assessment years.
The specified relatives list in terms of Section 56 of the Income Tax Act is fairly wide. It includes brothers and sisters, and their spouses. Gifts to this category will not attract any tax. But acquaintances, friends, and other close family relations would come under the purview of the tax.
The app allows citizens to use digital documents on their smartphones instead of physical ones for identification and sharing purposes
With Dilly leading the company, the company continues to explore emerging technologies to ensure its solutions stay relevant to the industry
“The meeting has become another expression of our commitment to win the race to preserve our planet for future generations"
Companies that obtain an ADGM licence will enjoy certain benefits, including a streamlined transition process
If you're planning a trip to Dubai, be sure to visit Renty for a first-class driving experience
The actor attended the event in the UAE along with his family
Tremors were felt in the Greek capital of Athens and as far away as the southern island of Crete