Interest arising to the Non-resident external account alone is exempt from tax.

The difference between the STATE BANK OF INDIA rate and the contracted rate is to be treated as a perquisite. The SBI rate for housing loan ranges from7.5% to 8.25% depending on the period of the loan for asst year 2005=2006.

1. First and foremost transfer of the land to a trust will entail stamp duty at 13%. Later the trust selling the land will have to pay long term capital gains tax of 20% subject to indexation of the cost of the asset.
2. 2. This option looks better since you sell the asset in question retain the post tax proceeds in you name and use the funds to start the corpus for the trust. The constitution of the trust can be adequately structured to mitigate tax consequences.

1. Since you are an NRI there is no need to file any return of income even under the one by six scheme. You need not include this in the US tax return.
2. If the property is let out and derives income a return of income has to be filed reflecting the income and claiming the deductions relating to property tax and interest on loans.
3. Proceeds on the maturity of LIC policy are exempt from tax. Interest on NRO account is taxable and a return has to be filed to get the TDS refunded if the income is below the taxable limit.
4. Specific US tax issues are not addressed in these columns.

Salary earned in Singapore for 2004-05 is taxable in Singapore and the remittance of 75000/- is not taxable in India. Likewise salary earned for 2005-06 is taxable in Singapore and not in India.
In earning 3 streams of income i.e. rental, business and capital income, what is the position to taxation in India for a NRI as there is a Double Taxation Pact with Australia. Secondly, is there any way the income can be remitted overseas? Is there any time period after which these incomes are permitted to be remitted or at any time after investment?
In respect of the streams of income a non-resident can opt for a flat 20% tax subject to certain conditions. The said income can be remitted overseas subject to RBI regulations.

Interest on NRE Account is exempt in the case of non-resident and resident and not ordinary resident. Interest on RFC Deposits is taxable and does not enjoy any exemption.

Procedure for dual citizenship may be checked up with Immigration officials.

For the year 2004=2005 you will be treated as a resident in India and the salary earned in Australia is taxable in India. The tax return can be submitted from Australia itself and has to be filed before the 31st July. The tax paid is Australia can be set off in India in accordance with the DTA Agreement. There is no limit for the transfer of funds from the NRE Account to any other account. Gifts out of this account could be treated as income in the hands of the recipient. There are exemptions for specified relatives. Interest earned on NRE account continues to be exempt from income tax. There is not general utility tax here.

Withdrawal out of IRA is generally exempt under the tax law here on the EEE model. It would however depend on the nature of savings. There is no direct Advance ruling on the subject. If we get hold of one we shall pass it on.

Since the salary is earned in India it is taxable here and a return of income has to be filed in India. Once you become a resident the income earned in UK also would get taxed in India.

The rate of tax on interest on NRO account is 10% plus surcharge.

PAN no is mandatory if you have income in excess of the limit liable to tax. In your cases your investments are in India and in Indian currency. You will have to apply for PAN no in any NRI circle in the metro cities.

Sale of the property in India is liable to capital gains tax subject to specified exemptions on reinvestments. Repatriation is possible and the procedure can be got from banking channels

This is a direct query on investment and not taxation and not in our scope to answer.

If the shares are listed and sold after holding them for more than 12 months the long-term capital gains are exempt. Otherwise they are liable to tax. Repatriation of the sale of shares is not permitted.

Since you have not earned or received any salary in India there is no need to file any tax return here and the question of issuing Form no 16 does not arise.

The income earned in India will be taxable in India.

Income would be taxable due to change in law. If you can manage to stay out side India for 183 days in that year you will escape the tax

Deposits can be allowed to mature. No tax will arise till the tax residential status changes to resident in India.

Yes. You can either pay under normal slab rate or 20% flat rate with surcharge and cess.

No gift tax exists now. Filing of tax return also depends on economic criteria like owning property etc.

No.

Yes.

The money received on insurance policy would not be taxed and this can be gifted or used by your parents as stated.