Income tax: How to claim credit of taxes paid abroad against liability in India

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New Delhi | June 20, 2017 4:25 AM

or taxation in India, you shall be required to include the UK rental income while computing your total income and you can claim credit of the taxes paid in UK against the Indian income tax liability subject to the maximum of tax paid in India.

income taxGift received by HUF from relatives of members shall be taxable.

I returned to India from the UK in mid-2015 and have been living here since then. During my stay in UK I had purchased a house. Recently, I let out this property. Will the rental income be taxed in India?

– MK Mahesh

I believe that you are an Indian resident and thus, as per Income-tax Act, 1961 your global income will be taxable in India. Further, the UK being the source may impose its tax on the rental income in the UK. For taxation in India, you shall be required to include the UK rental income while computing your total income and you can claim credit of the taxes paid in UK against the Indian income tax liability subject to the maximum of tax paid in India.

l Is a gift received by HUF from its members or their relatives taxable?

– Abhijeet Parikh

Gift received by HUF from its members are exempt under Section 56(2) (x). Definition of “relative” in case of a Hindu Undivided Family covers any member thereof. It does not include relatives of such member. Thus, gift received by HUF from relatives of members shall be taxable.

l Is there a way of checking how much taxes have been deducted and paid by my employer?

– Kunal Agarwal

The employer is required to deposit the tax deducted within seven days of next month and for the month of March, tax shall be deposited by 30 April of the next financial year. An employee can verify his TDS (taxes deducted by employer) in Form 26AS from the TRACES website. The facility of accessing Form 26AS is available to a PAN holder having net banking account with any authorised banks. The employee can View Tax

Credit Statement (Form 26AS) only if his PAN number is mapped to that particular account and this facility is available for free.

The writer is founder of RSM Astute Consulting Group. Send your queries to fepersonalfinance@expressindia.com

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