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Old 5th January 2013, 15:40   #286
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I have an S corp in the US which is taxed in the US and I ocassionally wire money to my accounts in India so that money is getting taxed twice. Is there any way around this? Should I set up an LLC in the US and run the funds thru that so that the money won't be taxed there (w8 ben)?

Or any way to set up an Indian subsidiary that won't be taxable? The income is earned completely offshore/outside India.
Evil, I guess there is a Double Tax Avoidance (DTA) Agreement between Indian and US. If your income falls under the scope of that treaty, you needn't pay tax twice. Please seek professional help.

If it is not a business txn. The money you are wiring to your relatives in India would be completely tax free.
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Old 5th January 2013, 15:45   #287
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Would appreciate the contact of a good professional.

Thanks in advance.
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Old 7th January 2013, 11:10   #288
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I got a letter from the IT department stating that I had made a high value transaction two years ago without mentioning the PAN and asking me to submit that year's returns and PAN copy. I had purchased a house then and I think that is that transaction they are talking about. Anyways, have sent the details. Not sure there will be any issues later on.
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Old 17th January 2013, 21:38   #289
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I have a question on section 80 G. I made a donation to an organization (educational institute) that gave me a receipt for the same. However, the organization I work for (I suspect it's not just my organization) refuses to accept and consider any contributions under 80 G and says I need to claim this when I file my returns. I've seen several articles online (like this one - http://taxguru.in/income-tax/all-abo...-donation.html) but can't understand two things
1. What is the exemption I can claim. Let's say the donation was Rs 40000.
2. Can I still file my returns online like I've been doing for the last few years. Those who have submitted their return online will know that no proofs need to be submitted, not even the form 16. So not sure how I can submit the proof and claim the deduction.

Last edited by triedeverything : 17th January 2013 at 21:40.
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Old 18th January 2013, 11:29   #290
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Originally Posted by triedeverything View Post
I have a question on section 80 G. I made a donation to an organization (educational institute) that gave me a receipt for the same. However, the organization I work for (I suspect it's not just my organization) refuses to accept and consider any contributions under 80 G and says I need to claim this when I file my returns. I've seen several articles online (like this one - http://taxguru.in/income-tax/all-abo...-donation.html) but can't understand two things
1. What is the exemption I can claim. Let's say the donation was Rs 40000.
2. Can I still file my returns online like I've been doing for the last few years. Those who have submitted their return online will know that no proofs need to be submitted, not even the form 16. So not sure how I can submit the proof and claim the deduction.
1. You can claim exemption on all the 40 K you donated. This is subject to your taxable income being above 4 Lac.
2. You can claim it while filing online. You don't need to attach proof. Keep the proof safe with you in case your returns are scrutinized.


Also make sure you get a Income tax exemption certificate from the organization. The receipt alone is not enough to get a tax exemption.
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Old 18th January 2013, 12:39   #291
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Also make sure you get a Income tax exemption certificate from the organization. The receipt alone is not enough to get a tax exemption.
Thanks Carbookie

The receipt is actually sealed with a stamp that lists down the exemption section, registration number, and other stuff like that. Do I still need a certificate?

Also, could you tell me how did you arrive at a 100% exemption? I see only a few organizations that have 100% exemptions... like the PM's relief fund, etc. Do share a link that I can go through if you have one.
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Old 18th January 2013, 12:54   #292
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Originally Posted by triedeverything View Post
1. What is the exemption I can claim. Let's say the donation was Rs 40000.
Quote:
Originally Posted by carbookie View Post
1. You can claim exemption on all the 40 K you donated. This is subject to your taxable income being above 4 Lac.
The calculation in not so straight forward as it is being portrayed. If the donee organisation does not fall under the specified category of organisations, you will be eligible only for 50% of the amount donated subject to the 10% cap.

Please check out this article for detailed explanation.

http://www.raagvamdatt.com/make-dona...ax-section-80g

Quote:
Can I still file my returns online like I've been doing for the last few years. Those who have submitted their return online will know that no proofs need to be submitted, not even the form 16. So not sure how I can submit the proof and claim the deduction.

Yes, you can.

However, Since your organisation does not consider this 80G donation, they would deduct tax (TDS) for that amount too.

When you file online, you will be shown the tax benefit equivalent to the donation made as a refund (Provided you do not add any other income apart from Form 16).

Last edited by Warwithwheels : 18th January 2013 at 12:56.
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Old 18th January 2013, 13:53   #293
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Perfect! Thanks for the link and the reply. Makes perfect sense now. Do you know if all organizations don't consider proofs under the 80G section?
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Old 22nd January 2013, 14:15   #294
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I filed my income tax return online last year, uploaded the xml file and also got the pdf acknowledgement. I then posted the printout of that pdf together with my brother's similar document. My brother got acknowledgement mail via India Post from income tax dept., but not me. Should I be worried? If yes, how do I pursue the matter?

This is for regular salaried income, tax deduction at source.
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Old 22nd January 2013, 15:35   #295
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Originally Posted by Guite View Post
I filed my income tax return online last year, uploaded the xml file and also got the pdf acknowledgement. I then posted the printout of that pdf together with my brother's similar document. My brother got acknowledgement mail via India Post from income tax dept., but not me. Should I be worried? If yes, how do I pursue the matter?

This is for regular salaried income, tax deduction at source.
I am surprised that they have sent it in post. Usually they sent the acknowledge in e-mail. So, check your mail. Should be no issue.
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Old 22nd January 2013, 20:56   #296
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I am surprised that they have sent it in post. Usually they sent the acknowledge in e-mail. So, check your mail. Should be no issue.
My bad. My brother got it by email. I checked online at incometaxindiaefiling.gov.in. It shows my status as "ITR Processed". I suppose all is hunky dory, then.
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Old 24th January 2013, 19:18   #297
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I got my employee provident fund today (I had asked for withdrawal more than 2.5 years ago when I quit my last job).

Now, the entire amount is taxable and I am ready to pay 30% tax on it.
Question is if I have to pay tax now or can I delay it till March 31?
Do I have to pay any penalty if I delay the self assessment tax payment by two months?
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Old 24th January 2013, 19:54   #298
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Now, the entire amount is taxable and I am ready to pay 30% tax on it.
Are you sure it is fully taxable? Have you not been in continuous service for 5 years or more?
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Old 25th January 2013, 12:19   #299
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Are you sure it is fully taxable? Have you not been in continuous service for 5 years or more?
No. I was with that company for only two years. I don't think I had got a PF transfer done even before that. I think it was a withdrawal even before that.

So, yes, it is taxable (at 30% for me).
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Old 25th January 2013, 14:02   #300
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No. I was with that company for only two years. I don't think I had got a PF transfer done even before that. I think it was a withdrawal even before that.

So, yes, it is taxable (at 30% for me).
Please consider the year the PF account was opened. Meaning, even if you have transferred from other employer, and stayed with this employer for 2 years, you need to consider the previous employers experience too.

provided, the PF was transfered from emp-1 to emp-2.

http://taxguru.in/income-tax/withdra...y-taxable.html
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