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The Rediff Money Channel presents everything you wanted to know about tax issues, but didn't know whom to ask. Chartered Accountants from Ganesh Jagadeesh & Co are here to remove all your doubts.

Readers' Note: Please keep your questions short.

I had a PPF account with with State Bank of India before becoming an NRI. Is an NRI eligible to remit money into one's PPF account?

— Darla N Rao

An NRI is eligible to remit money into his PPF account in India out of funds held outside India through the regular banking channel.

I have been in the US for last two years. I have a PPF account at the head post office in Delhi. Can I can close that account as I am finding it very difficult to manage from here. Or, can this PPF account be transferred to a, say, State Bank of India in Delhi?

— Vijay Shukla

PPF accounts are also maintained by specified nationalised banks. If you have one such account, then closure or transfer of such account to State Bank of India is not a problem and can be done.

I own a flat in India and I get a rent of Rs 60,000 annually. This income is deposited in NRO account and the flat had been purchased from my NRE account. Is my income taxable? Do I need to apply a PAN account?

— Manoj Kumar

NRI's are not required to apply for PAN. Income accrued or deemed to accrue and/or received or deemed to be received in India are taxable in India. Hence in your case the rental income received and deposited in your NRO a/c is taxable.

I am an NRI and have been living outside India since March 1998.I have not, since my exit, returned to India. I took an IT clearance certificate prior to departure. If I visit India now, do I need a fresh ITCC to exit?

— Venkat Raman

No you would not be required to take fresh ITCC if you are coming to India only on a casual visit.

I am an NRI for the past 18 years. I had invested in Indian equity and receive dividends which amounts to a maximum of Rs 10,000 per annum. I do not have any other source of income in india. Tax is deducted by the company during the payment of the dividend. How do I avoid paying the tax which is deducted.

— Jaikumar Menon

Currently dividend has been subject to dividend tax applicable under section 115-O of the Income Tax Act, 1961 payable by the company declaring such dividend. In such cases, TDS is not attracted from the receiver of dividend. However, in cases of dividend not covered u/s 115O, TDS would be attracted. A shareholder may apply in Form No 13 to the concerned Assessing Officer and obtain a certificate in Form No 15 authorising the payer to pay dividend without TDS or with deduction at lower rate.

I have been in the US for the past three years. Earlier, I worked in India and paid income tax (was deducted at source by the company) but could not file the returns. I do have the form-9 (pertaining to year 1996-97). What is the procedure/penalty for this and how can I get this corrected?

— Kamal Sukhija

The time limit for filing of the IT return for the FY 1996-97 was available only up to March 31, 1999 and hence has lapsed. Now you would not be eligible to file the return.

Send in your questions to perfin@rediff.co.in

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