Q. I am a senior citizen. I am planning to buy a senior citizen scheme jointly with my wife to the tune of ₹15 Lakh for the FY21 and ₹6 lakh in FY 22, respectively. Am I eligible to get I-T benefit for FY21 and FY22, respectively?
Kalyan Kumar Dey
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Q. I work in a Indian IT firm and was assigned onshore work in U.K. under a work permit from January 2018. My assignment got completed and I returned home in January 2020. I did not receive any Indian pay and there was only U.K. pay (but there was an Indian component to it). For FY18-19, my tax in India was 0. But for FY19-20, tax was deducted in India for whole year. I paid tax in the U.K. also for two years. Does this count for dual tax and can I claim my tax paid in India? Also, my colleague returning after February 2020 did not pay any tax in India.
Srivatsan
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For FY19-20, as per the residential status determination provisions, you still will be an NRI as you were outside India for more than 180 days in the financial year and were outside India for the purpose of employment due to which income tax does not arise in India for the income earned in U.K. You may contact your HR department to understand the reason for deducting the tax for the whole year. Indian income tax return has to be filed for any income received in India for this year. If any excess Indian tax deduction is made by your company, the same can be claimed as refund. However, it is to be noted that any excess tax paid in U.K. cannot be claimed as refund in India or vice versa.
Q. I am a very senior citizen and so, I am exempt from paying advance tax. I calculate self-assessment tax and pay it in the stipulated month. Now that the last date of submission of I-T return has been shifted to November 30, can I pay the self-assessment tax in November and file my I-T return by the same date?
K.A. Narayanan
This reply is based on the developments and the announcements up to August,21 2020.
(The author is a partner, GSS Associates, Chartered Accountants, Chennai)