[hserus]

Mods please merge. Sorry for the double post but just finished a seminar on RSUs.

OK first -

1. Tax will be withheld at 25% even if you have a W8-BEN - you can take advantage of double tax avoidance, or you can file a non resident alien return which involves getting a US tax ID.

2. W8-BEN has a finite life - December 31st on the 3rd calendar year of your purchase. So if you file one on 19 Aug 2016, it is valid till 31 Dec 2019.

Originally Posted by hserus

W8-BEN can expire after a time limit, I think three years. And it can take a while to be processed too. Is this the first time dividend withholding tax was deducted for you?

You are eligible to file a nonresident alien tax return to claim a refund of that amount https://www.irs.gov/individuals/inte...esident-aliens

Whether it is worth the expense / trouble of filing a return is something that will depend on just how much dividend your RSUs are fetching you.

[bluevolt]

When TDS will be refunded? (For those who are eligible for the TDS refund).

[sdp1975]

I received the intimation under 143(1) for my wife for AY 2016-17 today. I had paid self assessment tax of 3380/- and it does show in form 26AS but that has not been considered in 143(1). Consequently , there's a demand of 3380/- .

I don't understand why the payment for the self assessment tax was not considered when it shows clearly in 26AS. What should I do next , file a rectification request from the e-filing portal asking for a correction ?

EDIT : Looks like the advance tax details for 3380/- was entered incorrectly in the tax filing. The date was incorrect and it was entered in the "advance tax" column and not the "self assessment tax" column.

[Sherlocked]

Originally Posted by sdp1975

I received the intimation under 143(1) for my wife for AY 2016-17 today. I had paid self assessment tax of 3380/- and it does show in form 26AS but that has not been considered in 143(1). Consequently , there's a demand of 3380/- .

I don't understand why the payment for the self assessment tax was not considered when it shows clearly in 26AS. What should I do next , file a rectification request from the e-filing portal asking for a correction ?

Hi!

Did you mentioned the details of self assessment tax such as BSR code, challan number and amount of tax deposited in your ITR form?
If yes, then it should have been considered.
Check your ITR-V form which you must have received in your email just after submitting the return online. See the self assessment column there.

If you have forgot to mention the details while filling of return then I think you may have to file a revised return. Though I'm not sure. Experts may help you on this.

[sdp1975]

Originally Posted by Sherlocked

Hi!

Did you mentioned the details of self assessment tax such as BSR code, challan number and amount of tax deposited in your ITR form?
If yes, then it should have been considered.
Check your ITR-V form which you must have received in your email just after submitting the return online. See the self assessment column there.

If you have forgot to mention the details while filling of return then I think you may have to file a revised return. Though I'm not sure. Experts may help you on this.

I made a mistake on the payment date of the self assessment tax - put it as 30/5/2015 instead of 30/5/2016 while filing the return. That's why it wasn't considered. Since the return has been processed, I can't file a revised return and I think I will have to file a rectification request.

[concorde24]

Originally Posted by sdp1975

I made a mistake on the payment date of the self assessment tax - put it as 30/5/2015 instead of 30/5/2016 while filing the return. That's why it wasn't considered. Since the return has been processed, I can't file a revised return and I think I will have to file a rectification request.

Next time, you could try the Pre-fill feature of the ITR-Java utility to avoid these kind of mistakes in filing return. Pre-fill option would automatically fill in the PART A-General from either your PAN/Previous return and also the tax-paid information including the TDS section automatically from 26AS.

[binand]

Does my wife need a PAN card?

- She does not work - in the IT Act sense.
- She is co-owner of our apartments and co-borrower on our housing loans.
- We live in one such apartment, and another in Chennai is rented out.
- I list both properties as 100% owned in my IT return.
- I declare 100% of the rent received as part of my income and pay tax on it.
- She has no bank account in which I am not joint holder. All such accounts are declared in my return, and interest from all such accounts are part of my income.
- Any transaction that requires her to quote PAN, she uses mine.

I don't see any reason why she needs a PAN except in some dire circumstances, like my death etc. But a reputed builder in Bangalore (inasmuch builders in Bangalore can be considered reputed) is now insisting she applies for a PAN and quote that in our application for a flat in their new project. Is the builder justified? What is the legal status?

[sgiitk]

@binand; Yes as per our silly laws she must have a PAN. There may be zero income declared there but that is a secondary matter. My wife has been a zero tax person for well over a decade, but has a PAN, and her return is filed annually (Sec.10 income of over one lac).

[hserus]

Originally Posted by sgiitk

@binand; Yes as per our silly laws she must have a PAN. There may be zero income declared there but that is a secondary matter. My wife has been a zero tax person for well over a decade, but has a PAN, and her return is filed annually (Sec.10 income of over one lac).

Add to that - if she is a co owner in your flat the rental income and loss from interest, maintenance, standard deduction technically has to be split between you two on a consisten percentage year on year. That could be even 99% for you and 1% for her but the split can't be 100 - 0.

So yeah she needs a pan and needs to file a return for sure

[sgiitk]

I was not aware of this. I will inform my son about this. They (he and his wife) have a flat where they are living in (bought outright this year). Fortunately, income loss of interest, etc. are also nil.

[hserus]

Originally Posted by sgiitk

I was not aware of this. I will inform my son about this. They (he and his wife) have a flat where they are living in (bought outright this year). Fortunately, income loss of interest, etc. are also nil.

If she is still under the minimum taxable bracket even after this split the tax authorities will 99% not bother.

So you could even split it to a 75-25, 50-50 or similar if it reduces your tax liability for rental income. Even after the loan is paid off, rental income can continue to be split in that manner.

[sgiitk]

Originally Posted by hserus

If she is still under the minimum taxable bracket even after this split the tax authorities will 99% not bother.

So you could even split it to a 75-25, 50-50 or similar if it reduces your tax liability for rental income. Even after the loan is paid off, rental income can continue to be split in that manner.

I said bought outright - no loans, paid 100% up front. Self occupied so no rental either, I think we are safe! The transaction was supervised by my CA.

[hserus]

Originally Posted by sgiitk

I said bought outright - no loans, paid 100% up front. Self occupied so no rental either, I think we are safe! The transaction was supervised by my CA.

Capital gains tax later on when you sell the place is the only implication then.

[binand]

Originally Posted by hserus

Add to that - if she is a co owner in your flat the rental income and loss from interest, maintenance, standard deduction technically has to be split between you two on a consisten percentage year on year. That could be even 99% for you and 1% for her but the split can't be 100 - 0.

I don't think that is the case. Since the property is entirely paid for from my earnings, I am the 100% owner of the property even if there are co-owners in registration documents. This is not just about the spouse - even in cases where people buy apartments with their parents, siblings etc. as co-owners. This is clarified in section 26, IT Act.

Originally Posted by hserus

So yeah she needs a pan and needs to file a return for sure

Whether she needs a PAN or not is the question; I know for sure she doesn't have to file a return unless she has taxable income.

[hserus]

Hm. 24b rather than 26 seems to suggest you are right here - but that co ownership + your payment has to be documented. For example if the payment goes out from an account on which your wife is a joint holder it tends to confuse matters. It makes it far easier to assign a token share of the property to your wife, thus leaving a door open to reduce your tax implication on rental income if you so choose.

They're asking for a PAN more for KYC norms than anything else. It has become mandatory for house property over 10 lakh, regardless of the income status of one of the co owners.

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