VB Prabhu Verlekar
Q. I lost approximately Rs 5 lakh, from my bank account with nationalized bank, due to on-line fraud. I immediately filed a complaint with the bank and also registered an FIR with cyber branch police station. However, despite six months passing, the bank has not refunded the money and is not taking responsibility for the amount, citing negligence on my part. Is there any legal remedy available to recover the amount?
Dr Jagannath S Mardolkar, Cuncolim.
In a recent Supreme Court judgment, State Bank of India v. Pallabh Bhowmick and others, it was ruled that banks are liable to compensate customers for unauthorized and fraudulent transactions, provided the customer reports the incident within the time frame of three days stipulated by the RBI. The court also clarified the legal relationship between banks and their customers, is debtor and creditor and not trusteeship. The bank is responsible to repay the deposit on demand and it is responsibility of the banks to implement advanced technology to detect and prevent such frauds.
You should therefore seek relief by first following the prescribed dispute resolution mechanisms of the bank. If relief is not given, you may approach Bank Ombudsman failing which you may file appropriate writ in the High Court.
Q. I am a British of Goan origin holding OCI card residing in Goa since Dec 2015. I receive monthly pension from the UK in the bank. Should this pension be included to calculate my income to file IT returns? Please advise.
Joseph R. Araujo, Saligaon.
Since you have been staying in India for last 10 years and your stay exceeds 182 days in financial years, you will be considered as, ordinary resident in India irrespective of your citizenship. In this tax status, you are liable to pay tax on your entire world income including UK. However, under Double Taxation Avoidance Agreement (DTAA) between India & UK, pension received from U.K. government (not Crown Agents) is liable for tax by British Government & not by Indian Government. If it is a private pension, it is taxable in India and you will be able to claim foreign tax credit for any tax paid in UK.
Q. I am running a retail business store and declare my income from business on presumptive basis at 8 per cent of the turnover which will be around Rs. 1.75 crore. Am I liable to pay advance tax?
Ramnath Sukhthankar, Mala.
U/s 44AD of IT Act, an individual can offer income from business on presumptive basis without maintaining books of accounts at 8%/6% of the turnover if annual sales turnover is up to Rs 2 crore. You are required to pay advance tax if tax due after claiming all deductions is Rs. 10,000/- or more. For income u/s 44AD, the advance tax can be paid in one installment on or before 15th March. In other cases, same is required to be paid in four instalments on or before 15th June, 15th September, 15th December and 15th March.
Q. During financial year 2024-25, I have received on my 60th birthday, five gifts of Rs 30,000, Rs.10,000, Rs 12000, Rs 1001 and Rs. 25000 from my friends who are not my relatives. Since each gift is less than Rs.50000 will it be exempted as my income?
Lucas Luis Rodrigues, Raia.
W.e.f. October 1, 2009, gift from non-relatives are exempt up to Rs.50,000 under section 56(2) of the Act. The total amount of five gifts received by you is Rs 78,001 which exceeds exemption limit of Rs. 50,000. In view of this, the entire amount of Rs. 78,001/- will be added to your income liable for tax.
Q. I am operating as a matka bookie which is illegal in India. Annually I earn about Rs 25 lakh after paying the monthly hafta, wages of slip-writers etc. I wish to file my tax return and pay proper taxes on the income?
Name withheld on request
If your income is from illegal activities like matka bookie you still have to file a tax return and pay taxes in India. The Income Tax Act does not differentiate between legal and illegal income when it comes to taxation. Keep a daily record of receipts and expenses in case of enquiry from tax department. To the best of my knolwdge there is no automatic sharing of this information to other authorities. However, filing tax return does not prevent authorities from taking action against you under anti-gambling laws independently.
Q. We are senior citizen married couple having Portuguese nationality. Being fascinated by Goa with nice warm weather, friendly people and Portuguese culture, we wish to buy a beach villa in Goa and stay permanently. What are the legal formalities we are required to comply with to acquire property and stay here?
Jose Maria Almeida de Pais Vieira, Lisbon, Portugual.
A foreign national of non-Indian origin like any other Indian citizen can acquire any immovable property in India without restriction provided he fulfills the conditions of residence in India as provided in FEMA. Under FEMA, a person is considered as, resident in India if he is residing in India for more than 182 days during the course of preceding financial year and who has come to or stays in India either for taking up employment or carrying out business or vocation in India or for any purpose. To indicate his intention to stay in India for an uncertain period, he requires a valid business, employment or residence visa. If you do not wish to be resident in India, as above, you have option to take on lease residential accommodation without RBI’s permission provided the lease is for less than 5 years period.
The writer is well established, senior practising chartered accountant with wide experience in taxation and finance. He is also a strategist in turn round management of institutions.
