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Income Tax Saving for FY 2020-21

In general, 31 March of a financial year is the last date to make investments in income tax-saving instruments, be they insurance premiums, ELSS mutual funds, PPF, NPS, health insurance, etc. Given the disturbances causing by taxpayers’ lockout and financial hardship/cash flow issues due to decreasing business activity, the due date for all these investments extend to June 30th, 2020.

Thus, for the investment makes after March 31, 2020, until June 30, 2020, deduction under Section 80C claiming either in FY 2019-20 or FY 2020-21, at the taxpayer’s choice (subject to monetary limitations). However, it notes that only one of the two financial years (i.e., either FY 2019-20 or FY 2020-21 and not both) should be counted for the investment made during this period.

A residential status report in the Income Tax Return form before income tax authorities. ITR fills if the gross income in a financial year exceeds the maximum amount, not taxable (i.e. Rs 2.5 lakh). Residential status discloses to banks by visiting the bank branch.

In the case of NRIs, in India only income that accrues or occurs is taxable. Thus, tax returns only require to filed if India’s income exceeds Rs 2.5 lakh. Furthermore, being a citizen of Isle of Man, your daughter must comply with that country’s domestic law. Also, if global income is taxable there, she must pay the income tax received in India as well. Neither India nor Isle of Man has a DTAA.

However, because the income of your daughter in India is less than the taxable cap. She expects to pay taxes on the Indian income in Isle of Man, so no double taxation. To assess and reduce the incidence of tax in Isle of Man, go for qualified support.

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