FIling tax for spouse


We (Me & my wife) are NRI's. I continue to get my India salary (only the 'Basic' component though) and therefore file my Indian taxes regularly every year. However my wife does not have a job in India but has a job in US from where she transfers money to her India Savings account regularly. She also opened an indian demat account in 2009 through which she has purchased a few stocks & MF's and has earned dividends on the stocks (all her MF's are Growth option so no dividends) during FY2010-11. Furthermore she also has some MF's which were on SWP for FY2010-11.

In her case I wanted to know:
1. Should she be filing her indian income tax for FY2010-11? If so, what should her income be? Is it Stock Dividends + Bank Account interest only?
2. What about SWP's? How do we treat them? Do they get considered as income for the FY2010-11? These MF's which are on SWP were equity-based MF's held for more than 1 yr and therefore I assume no LT Capital Gain tax is applicable.

The sum of her stock dividends, MF SWP & Bank Interest for FY2010-11 is less than INR 50,000.

Any advice would be greatly appreciated.


asked Jun 23 '11 at 04:55 by czar77 1111

  1. Dividends income is tax free as of now in hands of receiver (only case of Indian equity mutual funds and stocks of Indian companies). So your wife will only have taxable income as bank account interests.
  2. If SWP is on equity based mutual funds which have been kept for more than a year, then there is no income tax on money coming from SWP.

As the amount is less than taxable threshold, there won't be any income tax payable on it.

answered Jun 23 '11 at 17:11 by Pankaj Batra 5.2k320

Thanks a ton Pankaj.
(Jun 24 '11 at 02:22) czar77

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Asked: Jun 23 '11 at 04:55

Seen: 2,651 times

Last updated: Jun 24 '11 at 07:18