My child stays in the United States, whereas I remain inPune My child has 2 home residential or commercial properties inPune Can I pay community tax obligations on his part for those residential or commercial properties?
–Name kept on demand
I think that your child is a non-resident considering that he stays in the United States. According to Foreign Exchange Management Act (Fema) laws, settlements made by a citizen in support of a non-resident are forbidden unless particularly enabled. Therefore, such settlement of tax obligations in support of your child would certainly not be allowed under Fema.
If your child holds a non-resident average (NRO) account in India and if you have power of lawyer to run such an account, you might rather present a comparable amount of cash right into his NRO account. As the power of lawyer owner, you are allowed to make regional settlements, that include settlement of (community) tax obligations in India.
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While such a present would certainly be excluded in India for your child, it would certainly go through tax obligation accumulated at resource (TCS) arrangements in your instance. If the present surpasses an amount of 7 lakh, TCS will certainly be used at the price of 20% on the quantity surpassing 7 lakh.
I stay in the United States. I had actually placed in cash right into a start-up throughout the Covid duration due to affordable appraisal. Due to some brand-new guideline, my shares were just recently exchanged demat from physical shares. Does conversion of physical shares to demat draw in any kind of tax?
–Name kept on demand
For earnings to be exhausted as resources gains, it needs to arise from the ‘transfer’ of a funding possession. Shares in an unpublished business are unquestionably thought about resources properties. However, a ‘transfer’ takes place inter alia when there is a sale, exchange, forfeiture of a property or extinguishment of civil liberties in the possession. Conversion of shares from physical type to dematerialized type does not entail sale of unpublished business shares, or trading them for an additional possession, or forfeiture of the shares, or snuffing out civil liberties in the shares. Therefore, this conversion does not comprise a ‘transfer’ of shares and, therefore, does not entail any kind of tax obligation ramifications.
Harshal Bhuta is a companion at legal book-keeping company P.R. Bhuta & & Co.
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