Latest news with #Savani
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Business Standard
24-07-2025
- Business
- Business Standard
Think inheritance is tax-free? Here's what NRIs need to watch for in India
When an NRI inherits property or money from a relative in India, the initial reaction may be to treat it as a tax-free windfall. While that's partly true, experts caution that failure to understand the nuances of taxation, ownership documentation, and compliance can lead to legal trouble and financial loss. 'Under Indian law, there is no inheritance tax or estate duty applicable when an NRI inherits property or money in India from a resident Indian,' says Hardeep Sachdeva, senior partner at AZB & Partners, a law firm. 'The transfer is tax-free (from an Indian tax perspective) at the point of inheritance,' he noted. No tax at inheritance, but paperwork is key 'Inheritance of assets, including immovable property, securities, and money, by an Indian taxpayer is not, by itself, a taxable event under the Income-Tax Act, 1961,' explains Kunal Savani, partner at Cyril Amarchand Mangaldas. However, establishing clear ownership is vital. NRIs need a death certificate, the registered will (if any), and a Succession Certificate or Legal Heir Certificate. Mutation of property records with local municipal authorities is also necessary. 'Certain states require probate of the will, especially for immovable property,' adds Sachdeva. Rental income? Taxed at 30 per cent, TDS is mandatory If inherited property is rented out, the rental income is taxable in India, and the tenant must deduct TDS at 30 per cent (plus surcharge and cess) under Section 195, says Savani. 'In one case, a client received rental income for 18 months without deduction, and the tenant was later served a notice for TDS default,' says Sachdeva. This can be avoided with a rent agreement that clearly outlines TDS responsibilities, he said. 'Tenants become assessees-in-default if TDS isn't deposited,' adds Savani. Selling inherited property? Capital gains apply Capital gains arise only when the NRI sells the inherited property. Long-term gains (property held for over 24 months, including the deceased's holding period) are taxed at 12.5 per cent post July 23, 2024. 'The cost of acquisition is either the original cost or Fair Market Value as on April 1, 2001, whichever is higher,' says Ritika Nayyar, partner at Singhania & Co. TDS on sale proceeds is mandatory, and NRIs may apply for a Lower or Nil TDS Certificate. Common mistakes NRIs make NRIs often skip succession paperwork, delay mutation of records, or misreport rental income. Some fail to update their tax residency or don't file Forms 15CA/15CB while repatriating funds. 'These gaps cause long delays and legal disputes,' warns Gaurav K Singh, chairman of Womeki Group, a real estate developer. 'In Delhi NCR, for instance, weak documentation has even led to ownership challenges,' he added. 'Many NRIs overlook basics like updating property titles, settling local taxes, or even obtaining a PAN card for property-related transactions,' says Rakesh Malhotra, founder and chairman, PRIME Developments. 'We've seen cases where failure to report inherited property in Indian tax returns led to avoidable penalties,' Malhotra said. Both experts advise NRIs to engage reliable local professionals or property managers, as poor paperwork and remote oversight often lead to legal delays, tenant misuse, or compliance issues. Bottom line While inheriting property or money in India as an NRI does not trigger tax at the outset, any income from such assets is taxable. Complying with tax, property, and FEMA rules is critical and often overlooked. As Sachdeva notes, 'NRIs must treat inheritance as both a legal and financial responsibility.'
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Business Standard
24-06-2025
- Business
- Business Standard
Earning from reels or brand deals? Here's how influencers must file ITR
From choreographed reels to brand shoutouts, India's growing tribe of digital influencers is turning social content into serious income. But as the money flows in from YouTube AdSense, affiliate links, Instagram collaborations and freebies, so does the tax department's scrutiny. With digital footprints becoming increasingly trackable, creators can no longer afford to ignore the tax implications of their online hustle. 'All income from reels, brand deals, affiliate links, and even barter collaborations, if total gifts exceed ~50,000 in a year, must be reported under 'business and professional income' in your ITR,' said Sudhir Kaushik, co-founder and chief executive officer of TaxSpanner. 'Even free gadgets or hotel stays count as taxable perks.' What you must report Unlike salaried employees, influencers are treated as self-employed professionals or business owners under tax laws. According to Ankit Jain, partner at a law firm, Ved Jain and Associates, 'Income from brand promotions, affiliate commissions, online workshops, event appearances, merchandise sales, or even foreign payments must be reported. Under Section 194R, brands offering free items worth over ~20,000 must deduct 10 per cent TDS on fair market value, this applies even if the influencer receives no cash.' Pallav Pradyumn Narang, partner at CNK & Associates LLP, an all-service firm, echoed this. 'Everything received in exchange for content, whether in cash, kind, crypto, or vouchers, falls under the taxable head of 'Income from Business or Profession',' Narang said. Deductions that lighten the tax load Influencers can reduce their taxable income by claiming relevant expenses. 'Costs like studio rent, internet bills, software tools, camera gear, or travel for brand shoots are deductible if used for business,' said Shefali Mundra, chartered accountant and tax expert at ClearTax. 'Even salaries paid to video editors or assistants can be claimed. For high-value items like laptops or lighting equipment, only depreciation is allowed under Section 32,' Mundra said. Jain recommended that creators 'maintain a separate business bank account to avoid mixing personal and professional expenses. This simplifies accounting and strengthens your defence in case of scrutiny.' ITR-3 or ITR-4? Choose wisely Not all influencers qualify for the presumptive taxation route. 'If your work involves skills listed under Section 44AA, like technical consultancy or film artistry, and your gross receipts are under ~75 lakh, you may opt for presumptive tax and file ITR-4,' explained Kaushik. 'Otherwise, you'll need to use ITR-3 and maintain proper books.' Savani added that content creators can choose between the old and new tax regimes based on which offers better deductions. Skip the guesswork -- be fully compliant Under-reporting income or choosing the wrong ITR form can backfire. 'AIS and Form 26AS already reflect what brands, platforms, and banks report to the tax department,' said Savani. 'Even minor mismatches can trigger notices, audits, and penalties up to 200 per cent of the tax due.' Mundra further warned that failing to pay advance tax can attract interest under Sections 234B and 234C. 'Foreign earnings, GST on sponsored posts, and high-value freebies are under the scanner. Don't wait for a notice, file cleanly and smartly.' Final word Being an influencer may feel fun and free-spirited, but when it comes to taxes, it's serious business. From the first brand deal to the last swipe-up link, every rupee (or ring light) counts. The Income Tax Department is watching your follower count and your Form 26AS, so file right, stay compliant, and keep creating without worry.
Indian Express
20-06-2025
- Indian Express
Accused of honey trapping, extortion by Surat builder, absconding social media influencer held in Ahmedabad
Evading Surat police for over a year, a social media influencer, Kirti Patel, was arrested in Ahmedabad earlier this week for her alleged involvement in a case of honey trapping, extortion, and defamation filed by a builder, officers said. The woman was arrested from the Sarkhej area of the city on Tuesday. Police are looking for two more suspects involved in the racket. Patel, 34, has around 13 lakh followers on social media. On Wednesday, she was produced before a court by Kapodara police, which sought three days' police remand. Rejecting the same, the court sent her to judicial custody at Surat Central Jail. Sources said there was a property dispute between the complainant and one Vijay Savani, who also deals in real estate in Surat city, and the matter is pending in Surat court. To sort the dispute outside court, Savani took the help of Patel and others, said police. The complainant said Patel and others had called him to a farm house in Surat's Kosadi village last year for a meeting with Savani. During the meeting, they offered the complainant a cold drink spiked with a chemical substance and later took his objectionable photos, said the FIR. After a few days, Patel demanded Rs 2 crore from the complainant, threatening that she would make the photos go viral on social media, the FIR added. She also made different reels on social media against the builder and defamed him, the FIR alleged. The complaint was lodged in June 2024 under Indian Penal Code's sections 386 (extortion by putting a person in fear of death or grievous hurt), 389 (putting a person in fear of accusation of offence in order to commit extortion), 504 (intentional insult with intent to provoke breach of peace), 506 (criminal intimidation), 328 (causing hurt by means of poison etc,. with intent to commit an offence), 507 (criminal intimidation by anonymous communication), 120(b) (criminal conspiracy), Information Technology Act section 66(e) and 67. Besides Patel and Savani, a woman called Manisha Goswami and another man, Jehangir Khan, were named in the FIR. Savani was arrested last year followed by Goswami and Khan while Patel remained absconding. Kapodara police station inspector M R Solanki said, 'Earlier, we had arrested three accused and submitted chargesheet in the court. Patel was absconding and our teams were looking for her. After receiving tip-offs, we sent our teams to the Sarkhej area in Ahmedabad and caught her with the help of local police. We have seized her mobile phone and have sent it to the Forensic Science laboratory to retrieve the data. Two more accused named in the complaint are yet to be arrested and our teams are looking for them.'
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Business Standard
11-06-2025
- Business
- Business Standard
Told your employer one tax regime, but want to switch? Here's the rulebook
You selected a tax regime in April but now want to change while filing your Income Tax return (ITR) With the new tax regime being the default from FY24, many taxpayers are reconsidering their earlier choice. Are you allowed to change regimes? What are the consequences? We asked experts to explain. You can switch regimes while filing ITR 'Even if a salaried individual opted for a particular regime at the start of the financial year and the employer deducted TDS accordingly, they [individuals] are free to choose a different regime at the time of filing the return,' said Kunal Savani, partner, Cyril Amarchand Mangaldas. While the employer collects regime preference for TDS purposes, this doesn't lock the employee into that choice for return filing. 'The regime option is merely for calculating monthly TDS. Taxpayers have the flexibility to change the regime at the time of filing their ITR depending on which one gives them a lower final tax liability,' said Ritika Nayyar, partner at Singhania & Co. What if tax was already deducted? There's no penalty for switching, but there may be financial adjustments. 'If more tax was deducted under the regime declared to the employer, the individual can claim a refund,' Savani said. 'If less was deducted, they may have to pay the balance tax along with applicable interest.' Vivek Jalan, partner at Tax Connect Advisory Services LLP, noted a possible mismatch. 'The Form 16 issued by the employer may not align with the final ITR, which could trigger a verification notice from the tax department.' Can you switch regimes every year? Salaried individuals can switch between the old and new regimes every year. 'This flexibility is available only if such taxpayers do not have any business or professional income,' said Savani. 'For non-salaried taxpayers like freelancers or business owners, the choice is more rigid,' Jalan pointed out. 'They can opt out of the default new regime only once. After switching back to the new regime, they cannot opt for the old regime again, unless they no longer have business income.' Finalising your ITR Nayyar advised taxpayers to calculate income under both regimes and then choose one. 'The system will automatically adjust TDS and show the final liability or refund while filing the return,' she said. Jalan summed it up best: 'The date of filing one's ITR is practically the date when a salaried employee can make a final call on the tax regime.' Bottom line: If you initially told your employer one tax regime but want to pick another while filing ITR, you can. Just be ready to handle any refund or additional tax, and keep documentation ready if there's a mismatch.
Time of India
20-05-2025
- Business
- Time of India
Gujarat governor Acharya Devvrat honours historical buildings' restorer Ram Savani with 'The Pride of Gujarat' award
MUMBAI: recently honoured , Director of , with the prestigious The Pride of Gujarat award at a ceremony. Ram Savani is a well-known name in the field of preservation and restoration of historical buildings. Tired of too many ads? go ad free now To date, Savani has restored over 300 historical sites, including the Vikram Sarabhai Library at IIM Ahmedabad and the Royal Opera House in Mumbai. Ram Savani and his company, Savani Heritage Conservation Private Limited, have made significant contributions to the preservation and restoration of numerous historical buildings and sites in India. Their projects focus on preserving India's cultural and architectural heritage. Savani has conserved several ancient Jain temples in Gujarat and Rajasthan, featuring intricate stone carvings and ancient architectural elements. Notably, they have employed techniques such as stone cleaning, structural repairs, and traditional methods. On receiving the award, Savani said: 'I still have a lot of work to do. India's heritage is vast, and preserving it for future generations is crucial because it represents our history and the legacy of Indian traditions. I am grateful to all the members of the selection committee who deemed me worthy of the prestigious 'The Pride of Gujarat' award.'
