I am an overseas citizen (NRI) and an OCI cardholder. I have inherited agricultural land from my grandmother? How do I get it transferred in my name? Is there any procedure for that? What will be the tax implications?

—Ram

There is no inheritance tax in India, therefore there is no tax implications of inheriting land from your grandmother in India. However, you are a citizen and tax resident of another country; you will have to comply with local laws of the country that you are based in for inheriting property. You will have to apply to the sub-registrar’s office along with your grandmother’s Will for transfer of property in your name. In case you decide to sell this inherited agricultural land, Reserve Bank of India rules require that it can only be sold to a person who is resident in India.

My son is an NRI and his tenant has to deduct TDS (tax deducted at source) every month and deposit in the bank. After every quarter, he has to submit Form 27A and 27Q online and then generate Form 16A. All this process is very tedious and he pays hefty fees to a chartered accountant. Is it possible that I deposit TDS amount as advance tax every month in the bank?

—Dolly Moga

The Income-tax Act of India mandates that those who are paying rent to NRIs must deduct TDS at 31.2%. The responsibility of deducting TDS rests on the tenant, who is likely to face penal consequences for not doing so. In case your son does not have taxable income in India or tax rate applicable on his total income in India is lower than 31.2%, he can apply for a certificate for lower TDS deduction by filling up Form 13. The income tax officer will issue a certificate for nil or lower TDS deduction. This certificate is issued for each financial year. Unfortunately, due to the provisions made in the law, you cannot deposit advance tax on his behalf to avoid TDS.

I am an Indian and was based in India and was contributing to a Public Provident Fund (PPF) account regularly. I have now moved to stay in the US with my daughter and have become an NRI. My PPF account matured on 31 March 2018. Can I submit the necessary form for extension of PPF and by when? I have not changed the status of my PPF account; do I have to and what is the procedure? Once I extend it and change the status, can I invest and claim deduction under Section 80C? I file my returns for the income I earn regularly.

—Vardhini

The government had announced in October 2017 that resident taxpayers who subsequently become NRIs could not continue their PPF accounts. However, this notification was dismissed in February 2018. Therefore, there was no change in status for NRIs so far as PPF accounts are concerned. NRIs can continue to contribute to their PPF accounts, which were opened while they were a resident. New PPF accounts cannot be opened by NRIs. Also, NRIs are not allowed to extend their PPF accounts beyond the maturity period of 15 years.

To read more queries, go to livemint.com/askmintmoney

Archit Gupta is founder and chief executive officer, ClearTax. Queries and views at mintmoney@livemint.com

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