Now, NRIs can lodge a police complaint via video-conferencing

alandhar, September 10
The Punjabi diaspora have a reason to cheer with the state government launching a webpage through which an aggrieved person can speak with senior officilas through the video conferencing facility and lodge a complaint online.
The facility would not only benefit NRIs facing property-related problems in Punjab, but would also prove a boon for women deserted by their husbands. Till now, the complainants had to come to India for get their grievances redressed.
Sources said an aggrieved NRI can access the website www.punjabpolice.gov.in for video conferencing every Monday between 4.00 to 5.00 pm. The complaint can also be registered through e-mail nri.pbpolice@gmail.com.
Those wishing to speak directly with a senior official can dial the helpline at 0172-2748100. For special assistance, an SP rank official is also available at mobile number 97794-64002. The complainants can check the status of their complaints at the website, the sources added.
The website also has a provision for submitting information about Punjabis detained abroad.
An NRI wing has been functional in the Punjab police Headquarters for the past many months under the supervision of IG Gurpreet Deo, who also handles the Community Affairs Division. The NRI branch is the nodal authority for monitoring complaints of NRIs, inquiries and investigations carried out in the NRI police stations and supervision of the six NRI police stations in the state.
In addition to this, the cell deals with issues pertaining to those who have been duped by travel agents. Their mandate also includes compiling a database of complaints by NRIs, pertaining to research and evaluate nature of problems faced by them for improving the quality and efficiency of police services, the sources added.
Instructions have been issued to all SSPs and Commissioners of the six police districts where NRI police stations are functioning to ensure that all NRI-related matters are dealt with these police stations only and monitored by a Gazetted Officer.

London Court ordered Millionaire NRI to pay over 2,000 pounds as parking fee

LONDON: A millionaire NRI dentist has been ordered by a court to pay more than £2,000 inparking fee after fraudulently using a disabled badge to park his £140,000 Ferrari.

33-year-old Dr Chirag Patel used the badge which was issued to his business partner's late father, to park outside one of his 'Perfect Smile' dental practices in south London to avoid parking charges of about £15 a day.

According to a report in 'The Daily Telegraph', he admitted using the permit on six occasions in December 2009 and pleaded guilty to two counts of misusing the badge but denied a charge of fraud, which was dropped by prosecutors yesterday just as his trial was due to begin.

Paul Jarvis, prosecuting, told South Western magistrates' court in Battersea: "This case concerns Dr Patel's misuse of a disabled blue badge, that badge having been issued to the father of his business partner.

"The father passed away in 2008 and these offences are concerned with conduct occurring some time thereafter".

The dentist had just traded in his Bentley for a bright red Ferrari California convertible, making his £540-a-year Wandsworth business parking permit invalid while it was transferred to the new vehicle.

It would have cost nothing to get a temporary permit to cover the transition period but instead Patel used the badge, which had been invalid for about 16 months.

Patel was fined totally £2,199 including £784 cost.

Manmohan praises Indo-Canadian community

Toronto :

The 1.1-million-strong Indo-Canadian community received lavish praise from Prime Minister Manmohan Singh, who particularly acknowledged their contribution during the difficult times between the two countries.

"The community constitutes a bridge between our two countries that has remained strong and unshakeable even in the most difficult circumstances," the prime minister said in an obvious reference to Canada's reaction following New Delhi's nuclear tests in 1974 and 1998.

"I would like to especially acknowledge their presence here today and wish them even greater success as citizens of Canada," he said at a banquet hosted by his Canadian counterpart Stephen Harper.

"We applaud the opportunities they have been given to contribute to their social and economic development," the prime minister said, while also praising the Canadian governments at the federal and provincial levels.

Manmohan Singh said one of the greatest strengths of the North American country was to welcome and assimilate peoples from across the world.

Indian immigrants first landed in Canada in 1897 as lumber workers and labourers from Punjab. Now, some 30 percent of them have jobs as professionals and in top management positions.

There are also 12 Indo-Canadian members of parliament and legislators.

NRI's guide to renting out property in India

Sep 9, 2011, 07.59PM IST
Property is a favourite Indian asset class and one of the main reasons for this is its ability to generate regular cashflows through rent. In this column, we will look at the various aspects involved when anNRI rents out a property in India. The definition of NRI for the purposes of repatriation will be that of the FEMA and for the purposes of income tax will be that prescribed in the Income Tax Act.

Can NRIs earn rental income? 
An NRI can rent out property that he owns in India. The rent proceeds can be credited to the NRE or NRO account. Rent proceeds received in these accounts can be freely repatriated. If you do not have an NRE or NRO account, the proceeds can also be directly remitted abroad but you would need an appropriate certificate from a chartered accountant certifying that all taxes have been duly paid. 
Is rental income taxed in India? 
Yes, since this income is earned in India, tax will be payable by the NRI in India. In fact, tax will be deducted at source by the payer of the rent. The payer of the rent, in this case, must obtain a TAN number and deduct TDS of 30 per cent from the rent amount. He must also provide a TDS certificate to the NRI.

"The onus of deducting tax is on the payer. So in case the payer does not deduct tax and the NRI too fails to declare the income and pay the tax, the income tax authorities can hold the payer responsible," explains Sandeep Shanbhag, Director, Wonderland Investments.

Having said that, if the tenant does not deduct tax at source, it is prudent to file your tax returns and pay the taxes thereof.

Is rental income taxed in the country of residence? 
When you are an NRI, you are obviously a resident of another country for tax purposes. And in most cases, countries levy tax on residents on their global income. So it may happen that as per provisions of the Indian Income Tax laws, tax will be deducted at source on income earned in India, as is in the case of rent. But at the same time, that income will be subject to tax in your country of residence. In such cases, we need to refer to the Double Taxation Avoidance Agreements that India has entered into with various countries.

The India-US DTAA for instance provides that rent from immovable property will be taxed in the country in which the property is situated. So NRIs who are residents of US would have to pay tax on rental income in India. While they would still have to declare that income while filing their tax returns in the US, they would get a credit for taxes paid in India.

It is prudent to check the tax laws of the country that you are resident of or consult an expert in that country.

What is deemed rental income? 
According to the Indian Income Tax Act, if a person (resident or NRI) owns more than one house property, only one of them will be deemed as self-occupied. There will be no income tax on a self-occupied property. The other one, whether you rent it out or not, will be deemed to be given on rent. If you have not given the second property on rent, you will have to calculate deemed rental income on the second property (based on certain valuations prescribed by the income tax rules) and pay the tax thereof.

Now, the Income Tax Act does not specify if either or both these properties must be situated only in India. Vikas Vasal, Executive Director of KPMG India explains, "At the time of drafting the Income Tax Act, one did not envisage a situation where an Indian would own properties overseas. But now, more and more Indians are settling abroad. So from the reading of the Act, the rule of 'more than one property' will apply to global properties."

What this means is that if you are an NRI and own only one property globally and that property is in India, you would not have to pay any income tax on the 'deemed rental income' in India.

However, let us say you are an NRI resident in USA. You own and live in a house in USA. You also own a house property in India. Even if you do not give the property in India on rent, you would have to pay income tax on deemed rent in India. The deemed rent is determined by certain valuation rules prescribed in the Income Tax Act.

Remember that even if you have inherited a property in India and that is not your only property, you would have to pay tax on deemed income.

Is deemed income from house property taxed in foreign country? 
You would need to look at the tax code in your country of residence. In the case of NRIs in theUnited States, the US tax code does not tax deemed income. However, Ganga Mukkavilli, a New York City based CPA whose firm, CPAs, Taxes & Associates PC, specialises in international accounting, taxes and small businesses says that you would still have to show the property if it is an investment property in your tax return in the US (even though you do not have any rental income ). "If you do not show this investment property, the problem will arise at the time of sale of property. Suppose you sell a property on which you had no rental income for US tax purposes but had deemed income as per India Tax code, then the amount spent on the maintenance, repairs and renovations and depreciation on this property which may be eligible for deduction or addition to your cost basis while calculating capital gains would become difficult to establish. However, if you have not declared the property in your tax returns, the US tax code may challenge the cost basis (purchase + improvements + suspended losses)to claim a tax deduction at the time of sale," he explains.

"Of course, any investment properties with rental income and related expenses must be reported on Form Schedule E in the US tax returns and rental activities by nature are always treated as 'passive' investments with restrictions on deductibility of the net rental losses. Always consult a tax expert as passive activity rules are quite cumbersome," he adds.

Income tax exemption, possible? 
If your total income in India, including rental income is below the basic exemption limit of Rs 1.6 lakh, you can get a TDS exemption. But the process can be complicated. You would need to apply to the tax authorities for a tax exemption certificate and submit the certificate to the tenant. The issue of the certificate is at the discretion of the tax officer and he needs to be convinced about your case.

Alternately, an easier way would be to file your returns and claim refund of the TDS paid.

In such cases however, the rental income may be taxed fully in the country of your residence (based on the tax laws in that country.) So if you are a resident of the US, even though your income is below the basic exemption limit in India and you pay no taxes in India, this income will be added to your income in the US and taxed according to US laws. 

NRI Community Applauds The Government of India’s decision to Table Real estate bill in the Parliament

New Delhi: The Centre is likely to introduce a bill in the monsoon session of Parliament to protect consumers’ interests against dubious operators in the real estate sector.

The Real Estate (Regulation and Development) Bill 2011, prepared by the Housing and Poverty Alleviation (HUPA) Ministry intends to promote planned development of real estate and protection of public interest among others.

Even as the real estate sector is estimated to contribute 9 per cent of GDP, the rapid growth is largely unregulated leading to rampant public complaints about fly-by-night operators who take advantage of the vulnerability of the consumers in a deficit housing market.

The Bill has been framed to protect consumer interest and to facilitate smooth and speedy urban construction.

“The proposed Bill is crucial for regulating the real estate sector in a transparent manner and also to protect the consumers against unscrupulous developers,” Ministry sources said, adding that “concerted efforts are being made to introduce it in the coming session (in Parliament).”

According to the draft, developers will need to make public disclosures related to land title, project completion date and other relevant scheme details on the website of the proposed regulatory authority.

The disclosures must be made before launching a project, so that consumers are not taken for a ride at a later stage and the promoters will also have to register themselves with the regulatory authority.

The Bill has been framed with a view to protect consumer interest on the one hand and to facilitate smooth and speedy urban construction on the other.

Since it would be a Central legislation, state-centric issues such as building by-laws, land and municipalities have been removed from the draft.

“The thrust now is on consumer protection against fraud, timely completion of projects by developers and contractual obligations of the builder,” ministry sources said.

The Bill envisages setting up of a real estate regulatory authority by the state governments to check the illegal activities of the unscrupulous promoters.

Although the Reserve Bank of India (RBI) had recently issued a warning to developers over inflated valuations of property, the proposed Bill will not cover the valuation aspects in the current draft, leaving it to market forces.

Currently the draft of the Bill has been sent to the Law Ministry for vetting and after that it would be circulated to other concerned ministries including Environment, Consumer Affairs, Urban Development, Finance and Planning Commission before being sent to Cabinet for its approval.

According to the new Supreme Court ruling,Indian committing crime abroad can be tried in India

NEW DELHIL: An Indian citizen who has committed a crime abroad can be prosecuted in the country but the trial cannot commence beyond the cognisance stage without prior sanction of the government, the Supreme Court has held.

A bench comprising justices Altamas Kabir, Cyriac Joseph and S S Nijjar rejected the plea of NRIThota Venkateswarlu that the trial court in Andhra Pradesh cannot take cognisance of a complaint of harassment, dowry demands and criminal intimidation lodged by his wife, as the couple were living in Botswana.

The NRI’s wife Parvathareddy Suneetha returned from Botswana and lodged the complaint with the police which filed a charge sheet in the court of the additional munsif magistrate, Addanki, Prakasham district against her husband and other relatives.

The apex court said, “The language of Section 188 CrPC is quite clear that when an offence is committed outside India by a citizen of India, he may be dealt with in respect of such offences as if they had been committed in India.

“The proviso, however, indicates that such offences could be inquired into or tried only after having obtained the previous sanction of the central government.”

Justice Kabir said Section 188 is a fetter on the powers of the investigating authority to inquire into offence to the extent that it can be done only with the previous sanction of the central government.

“The fetters, however, are imposed only when the stage of trial is reached, which clearly indicates that no sanction in terms of Section 188 is required till commencement of the trial.

“It is only after the decision to try the offender in India was felt necessary that the previous sanction of the central government would be required before the trial could commence.”