Tax and NRIs

If you are an NRI, you would have to file your income tax returns for 2012-2013 in India, if you fulfill either of these conditions: - Your taxable income in India during the year 2012-2013 was above the basic exemption limit of Rs 2 lakh OR - You have earned short-term or long-term capital gains from sale of any investments or assets, even if the gains are less than the basic exemption limit. What about short term capital gains, like gains from stock market equity sells that you hold for less than a year? NRIs do not get the benefit of differential exemption limits on basis of age or gender that is available to Resident Indians. Estimating a flat rate of 10% in fixed deposits, then if you have invested 20 Lakhs in FD, then your annual income from FDs is 2 Lakhs. So, if you hold FDs upto 20 Lakhs, you still no need to pay tax on them. But, if you cross that limit, then definitely you do.

Tax on Dividends

There is no tax on dividends earned from stocks in India, but the same is not true in USA.

Expectations of commeners from the Union Budget

For the salary earning tax paying class of commoners, their are a lot of expectations from this years Union Budget. First and formost the Income Tax limits should go up:

Expected New Income Tax Slabs for 2013-2014

Expected New Income Tax Slabs for 2013-2014:
1. Income < 3 Lakhs = NIL tax
2. Income > 5 Lakhs = 10%
3. Income > 10 Lakhs = 20%
4. Income > 15 Lakhs = 30%.
Medical/Health Insurance limit should go upto 50,000.
Investment limit should go upto 2 Lakhs.
Home loan interest should be raised to 3 Lakhs.