Ask Anil: ‘Sent 30L Abroad For Studies: Which ITR To File?’

Do you have queries related to direct income tax?

Anil Rego, CEO, Right Horizons (external link), answers your personal income tax queries.

Ag Ramanand: Good evening Anil, I have made a remittance of around Rs 30 lakh abroad for education of my ward partly through FlyWire and balance through my bank account. Tax has been deducted.

My question is which form shall I choose for filing my IT Return and where do I report the remittance? I am a retired PSU employee.

Thanks for your help. 

Anil Rego:Hi, whenever you make a foreign remittance, you are required to file a declaration form (Form 15 CA). This should be done every time you make a foreign remittance and can be submitted online through your e- filing portal. Since you have transferred above 30 lakh, TCS (tax cleared at source) of o.5% is applicable (since this is education purpose).

To claim the TCS credits, you can use the ITR that you normally use. If your income consists only of pension and interest and you have not more than one income from house property, you can use ITR-1.

Ravindra Reddy: Respected Sir, I am a Senior Citizen, retired from a PSU as executive and receiving monthly pension. Recently I have sold a piece of land and gained Long Term capital gains on this property. It is learnt that the Senior citizens need not pay advance tax in every quarter if they will not receive the income from Profits and gains from Business.

Since, I received capital gains on sale of property, should I pay advance tax? Kindly confirm at the earliest.

Anil Rego: You need not pay any advance tax on your income, including on long-term capital gains from sale of Land. You can disclose this tax liability (in case you are not planning to reinvest into another property or REC bonds to save tax) while filing your income tax return on or before July 31, 2023.

If you delay the payment beyond the tax payment deadline, then you will have to pay interest for delay in filing of the ITR, as well as for delay in payment of taxes.

Ravindra Reddy: Dear sir, today is the last date for first advance tax due for this FY. Can you reply to my query so that I will make payment if applicable? Eagerly waiting for your reply.

Anil Rego: Answered above.

You can find more of Mr Rego’s answers here.

Note: The questions and answers in this advisory are published to help the individual asking the question as well the large number of readers who read the same.

While we value our readers’ requests for privacy and avoid using their actual names along with the question whenever a request is made, we regret that no question will be answered personally on e-mail.

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