Is it mandatory to declare losses or gains from equity transactions with more than one year holding if there is no long-term capital gains?
Long-term capital gains have to be disclosed as exempt income in the income-tax returns. In case the return is picked up for scrutiny, the assessing officer may question the source of receipts. If the gains/losses are not reported it would become difficult to substantiate the receipts if the disclosure in the income-tax return is not made appropriately. Further, it is always beneficial to maintain proper records relating to sale or purchase of equity shares.
Interest earned from savings bank account is exempt from tax up to R10,000 a year. Does that mean interest earned from all savings bank accounts or from one account alone?
Deduction on interest earned from savings bank accounts in banks, co-operative society (engaged in banking), post office is allowed against taxable income up to Rs 10,000 per annum. Dedu-ction is available on the total interest received from all the savings bank accounts and not on one account alone.
I am a senior citizen born in India and hold US citizenship. I have some mutual funds specifically earmarked for retirement, designated in the US as Roth-IRA. If I return to India, will the government of India impose income-tax on these funds?
Contributions made in a Roth-IRA are out of post-tax income, that is, no deduction is available from the taxable income at the time of making the contribution in the US. Once the individual becomes an Ordinary Tax Resident of India under the domestic tax laws, all withdrawals could be treated as income in India. However, out of the total withdrawal from the Roth-IRA, only the accretions will be taxed.
The writer is tax partner and India mobility leader, EY