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Submit Form 49A Along With Documents To Rectify Name On PAN Card

You will have to submit form 49A along with documentary evidence to change and/or rectify your name on PAN card. You can claim house rent allowance on rent paid to your father. Profits on NRE PIS account are taxable for an NRI and are subject to TDS
Q

How do I get my name corrected on my Permanent Account Number (PAN) card? My name is spelt as Sangita Jain whereas it should be Sangeeta Jain. 

A

To rectify the name on your PAN card you will have to submit form no. 49A to the income tax department. You can download the form from the NSDL or the PAN online website.

Do read the instructions carefully before filling up the form. You will have to upload documentary evidence to support the name change on your PAN card.  

In case there has been error on the part of income tax department, you can upload the copy of the document where the name is correctly mentioned. In case you have changed your name later, you will have to provide the copy of the official gazette where such change of name has been published. You also will have to pay the requisite fee online. In case you are not able to upload the documents online, you can print the form, attach the requisite documents, and send it to the address mentioned in form no. 49A.

Q

Can I claim rent paid to my father towards my house rent allowance (HRA)? I have a home loan running and recently took possession of my flat, which has now been let out on rent.

A

There is no restriction under the income tax laws as to whom you can pay rent to be able to claim exemption for HRA. What is required is that you should be paying the rent for the accommodation occupied by you and which is not owned by you.  

So even if you pay rent to your father, you should be able to claim exemption in respect of HRA received by you within the limits of rule 2A of the income tax rules.  

Do ensure that you pay the rent through your bank into his account and your father also mentions the same in his income tax return (ITR). A registered rent agreement between you and your father regarding the rent paid would avoid any problem with income tax department.

You can continue to claim HRA exemption even after you have taken possession of your house and let it out. The rent receivable by you in respect of the let house will be taxable as per the provisions of the income tax laws. From the rent received, you will get a flat 30 per cent deduction for repairs, in addition to the interest on the home loan for the year.  

In case you opt for the new tax regime, you cannot claim HRA benefits. Moreover, in respect of let out property, you are not allowed to set off the loss under the house property head against your other income.

Q

I am a non-resident Indian (NRI) and have an NRE (non-resident external) PIS (portfolio investment scheme) account with a bank. Is there any provision for tax deduction at source (TDS) on sale transaction of shares for an NRE PIS Account? I understand that the all the income of NRE accounts are exempt. In case TDS is applicable, what is the rate at which TDS is applied?  

A

Your impression that NRE income and NRE accounts are not taxable is not fully correct. What is exempt for an NRI is any interest credited in the NRE bank account. All the other incomes arising to an NRI from India are taxable in India.  

So, the profits which you earn on your NRE PIS account are taxable in India, and thus, are subject to TDS. The tax to be deducted on such income would depend on the amount which is taxable. Since PIS is applicable for shares to be purchased and sold on recognised stock exchanges in India, tax at the rate of 15 per cent will be deducted if the shares have been held for 12 months or less. In respect of long-term capital gains (LTCG) arising on sale of shares under PIS, tax at 10 per cent will be deducted on the profits made.  

The author is a tax and investment expert

(Disclaimer: Views expressed are the author’s own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.)  

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