Stipends abroad for studies are not taxable in India.
NRIs can invest in select mutual funds via Indian accounts.
Rental income taxed proportionally; ITR needed if income exceeds limit.
Stipend Received Abroad For Higher Study Will Not Be Taxable In India Under Income Tax Law
A non-resident can invest in only a few mutual fund schemes in India by first transferring the money to an Indian bank account. An NRI will have to file an ITR in India if the rental income along with other income in India exceeds the basic exemption limit under either the old or the new tax regime. Rental income from a joint property will be taxed in proportion to the ownership ratio
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My younger brother has gone to the UK for his PhD, where he will get around £350 as stipend per month. Out of which, after his expenses, he will save around £100 per month. Is there any way to invest this money directly in mutual funds in India? If he plans to transfer this money to India, then what are the cheapest ways to do so. Will he also have to file his income tax return (ITR) for this money?
Since your brother has just gone to the UK, any income including the stipend received by him outside India shall not be taxable in India, as his stay in India during the current year would not be more than 182 days, and he will be treated as non-resident for the purpose of income tax.
As far as investment of the surplus money is concerned, the same can be invested here in India by transferring the money to his bank account here in India. Since he has become a non-resident under the Foreign Exchange Management Act (FEMA), 1999, he will be able to invest in only a few mutual fund schemes here in India by first transferring the money to India. About the cheapest method of transferring the money from the UK to India, your brother will have to find out about the same, as there would be charges collected in the UK for making such remittance.
In case his other income in India does not exceed Rs 2.50 lakh, he will not have to file his ITR in India.
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I have been in the US for the last 10 months. I have two homes in India which I have let out on rent this financial year. Do I have to file my income tax returns in India?
The answer to your question will depend on whether your gross total income i.e., the income before giving effect to the deduction under chapter VIA, such as Sections 80 C, 80 D, 80 TTA/80TTB etc. in India for the year ending March 31, 2026 exceeds the taxable limit of Rs 2.50 lakh for individuals, Rs. 3 lakh for a senior citizen aged between 60 years and 80 years, and Rs 5 lakh for a super senior citizen aged 80 years and above, under the old tax regime. Under the new tax regime, the basic exemption limit is Rs. 4 lakh for all individuals irrespective of age.
The taxable income for rent from house property is computed by deducting standard 30 per cent from the gross rent received. In case of home loan, the actual amount of interest is allowed to be deducted if the property is let out. So, if the above computation of your rental income together with any other income exceeds the above limit, you will have to file your ITR in India.
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I am in government service and my wife is a housewife. I have booked an apartment jointly with my wife. My wife has paid nearly 20 per cent of the amount and I have paid the balance 80 per cent through a bank loan. We will get possession in the next 2-3 months. Can my wife rent out the property, which is jointly owned by both of us and show the entire rental income as her income from property?
The income from any asset belongs to its beneficial owner. In case there are more than one owners, the income shall be apportioned in the ratio of their respective ownership.
The rent realised on letting out of the joint property will have to be offered for tax in the ratio in which the property is owned by you and your wife. So, your wife cannot take the entire rent if the property is jointly owned with you. This could invite trouble from the income tax department if subsequently detected.
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The author is a tax and investment expert and can be reached on jainbalwant@gmail.com
(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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