harish asks I am a doctor. can i open a referal clinic in India. what are the procedures. can i bill my patients in dollars terms and repatriate my earnings to U.S
C V Rajan says as far as opening a referal clinic in india is concerned income tax act has no application. likewise, billing in dollars or rupees has no relevance to the income tax act. Under the income tax act, an assessee who is assessed in the status of resident is taxable on the worl income. income earned in india by exercise of medical profession, is taxable. regarding repatriation, the provisions of fema are applicable. income tax act does not deal with this aspect.

Vijai asks am a student in U.S. I have taken a loan from a bank in India. if i come back to india what are the tax liablities. can i get any deduction
C V Rajan says you can claim deduction under section 80 e of the income tax act in respect of repayment of loan taken for higher education subject to the conditions set out in the section.

Sam asks Hi sir
C V Rajan says hello

poojamangalam asks i am working in software consultancy in U.S. I pay tax in U.S Now i want to come to India what should i do to reduce my tax liabilities
C V Rajan says so long as you are non resident or resident but not ordinarily resident, you are not liable to pay tax on the income from your software consultancy in the US. But once you become an ordinary resident in india, you have to pay tax on US income as well, subject to the relief provided under the agreement for avoidance of double taxation between the government of india and the government of US. Further, you can invest in certain bonds or mutual funds, to avail deductions or tax rebate.

poojamangalam asks what type of mutual funds should i invest in?
C V Rajan says The income tax act prescribes certain mutual funds such as LIC mutual funds and UTI mutual fund, that are eligible for tax rebate and deduction. Further in mutual funds set up a public sector banks and public financial institutions notified by the Reserve Bank of India you can make investments to get rebate under the Act.

ramya asks I work for a company in U.S. I have two house in chandigar,India. My father was receiving the rents from those houses. Now he passed away. can i repatriate the rent?
C V Rajan says The query raised by you is not governed by the Income Tax Act. We will refer your query to a FEMA expert in Myvakil.com. Kindly post your query to Myvakil.com at www.myvakil.com

Joe asks I send $1000 every month to my mother in india. i need a plan by which she can make maximum benifit insted of giving it to the income tax department.
C V Rajan says your mother is not liable to income taxin india in respect of the amounts remitted by you out of your earnings, in US.Your mother is required to pay in India only on the income earned in India by investing the funds received from you if it exceeds the basic exemption limit of Rs.60,000/-. At present there is no gift tax in India.

kumaran asks i want to create a trust in india. what type of trust should i create?
C V Rajan says what is the purpose of your trust?

kumaran asks education
C V Rajan says do you want to set up a trust to run a school or a corpus to fund needy students? please explain

kumaran asks education
C V Rajan says income derived from properties held under charitable purpose qualifies for exemption under the income tax act to the extent the income is applied for such charitable purposes. a trust created for running a school will be eligible for exemption.

gdmadhri asks what will be my CG liab if me an NRI now sell assets that I had purchased o rinherited when i was a resident ?
C V Rajan says capital gains arising on the sale of capital asset in india is taxable in the hands of a non resident. but you can claim exemption if the amount of sale proceeds is invested in another house property or capital gains tax saving bonds

kumaran asks can i create a trust with trust fund alone. if i do that way will it attract any income tax?
C V Rajan says So long as the trust created is for charitable purposes, like education, relief to the poor, income earned from the properties or funds will qualify for exemption under the income tax act

K.V.Raman asks WILL THE U.S.GOVT ALLOW ME TO REMITT 1 MILLION DOLLERS TO MY N.R.I.ACCOUNT. HAVE I TO PAY ANY TAX IN INDIA FOR THIS
C V Rajan says if your residential status is non resident, income earned in US will not attract tax income tax in india. However the policy of the US government on remittance into bank accounts will determine if the government will grant you permission to remit the amount specified in the NRI account