By Chirag Nangia
If I spend tuition charge to an overseas college, do I have to spend any tax for that payment? Do I have to submit a statement for SFT for sending cash to my youngster abroad as living expense?
—Apurba Bhattacharya
With impact from October 1, 2020, an authorised dealer shall be essential to gather tax at supply (TCS) at 5% on any overseas remittance (beneath LRS) of Rs 7 lakh or more or aggregate of the amounts in excess of Rs 7 lakh in a economic year. If PAN or Aadhaar is unavailable, the price shall be 10%. Credit of TCS can be set-off against final tax liability of the payer in India. Therefore, if tuition charge or living expenditures paid by you exceed Rs 7 lakh, tax shall be collected at supply by the dealer.
For query B, a ‘Statement of Financial Transactions and Reportable Account’ (SFT) is essential to be furnished by specified persons such as banks, organizations, authorised persons beneath the Foreign Exchange Management Act if nature and worth of transactions of account holders crosses the prescribed thresholds. You shall not be essential to submit the statement. The prescribed particular person will report your higher worth transactions to the government.
l Last year I sold a home at a loss. Do I have to have to file ITR for this? I am a pensioner. In absence of this capital loss details, can I use ITR 1?
—Subal Basak
While filing a return of earnings one particular have to disclose earnings from all sources, irrespective of the quantity. Else, at the time of processing of return, the tax division could raise a query or make adjustments on account of mismatch. You could declare your earnings from pension and Capital Gains in ITR 2. You have to disclose sale consideration, expense of acquisition and resultant capital gains on account of sale of home.
l What is tax advantage on study loan?
—Deepak Kumar
As per Section 80E, any person who requires a loan from any economic institution or authorized charitable institution for larger education, regardless of whether in India or abroad, can claim deduction on interest paid for eight years, beginning from the assessment year in which he has began paying interest on loan or till the assessment year in which the interest is paid in complete, which-ever is earlier. Education loan can be taken for self, spouse, young children or student for whom you are the legal guardian.
(The writer is director, Nangia Andersen India. Send your queries to )