Your Income Tax Queries: NRIs do not need to quote Aadhaar in ITR or link PAN with Aadhaar

Published: April 8, 2020 2:45:16 AM

As per Section 44ADA, a resident individual, engaged in any business/ profession can declare income on presumptive basis only if gross receipts do not exceed Rs 50 lakh in previous year.

Any HRA to meet expense incurred on payment of rent in respect of residential accommodation “occupied” by the individual is exempt from tax.

By Chirag Nangia

The Central Board of Direct Taxes (CBDT) had said that all unlinked PAN cards by March 31, 2020 will be inoperative. Does this apply to Non Resident Indian (NRI) PAN cards? —A Venkat

The CBDT vide notification 37/2017, has exempted non-residents from quoting Aadhaar in PAN applications and Income Tax Returns. Accordingly, if you’re a non-resident for income tax purposes in India then you shall not be required to quote Aadhaar and resultantly, linking of PAN and Aadhaar shall also not be required to be done.

I am a defence pension holder and have additional income from profess-ional services with TDS deduction at 10%. I want to avail the provision of 50% of my professional services as salary. My total income will not exceed Rs 50 lakh. Can I file FY19-20 return with ITR1 combining both incomes?—Shreekrishna Shukla

We understand from your query that you wish to claim the benefit of presumptive taxation under Section 44ADA, the query has been answered accordingly. As per Section 44ADA, a resident individual, engaged in any business/ profession can declare income on presumptive basis only if gross receipts do not exceed Rs 50 lakh in previous year. In that case 50% of receipts shall be deemed as business income and shall be charged to tax. ITR 1 cannot be used by those who have income from business/ profession. A person declaring income on presumptive basis has to file Form ITR 4 if total income (includ-ing income from salary and business and profession) does not exceed Rs 50 lakh.

I stay in my own house in Hyderabad and draw HRA, which is taxed. I pay a rent of Rs 9,000 for accomodation for my dependant daughter in another part of the city. Can I claim exemption of HRA against this rent paid on behalf of my dependant daughter? —Agastya

Any HRA to meet expense incurred on payment of rent in respect of residential accommodation “occupied” by the individual is exempt from tax, subject to the prescribed limit. Exemption is not permissible on payment of house rent occupied by any other person. Hence, you shall not be allowed to claim exemption on HRA on rent paid by you for your dependent daughter since the house is not occupied by you.

The writer is director, Nangia Andersen Consulting. Send your queries to fepersonalfinance@expressindia.com

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