Month: September 2024

The trend of buying property abroad is rapidly gaining stock among Indians, with many now purchasing houses in the name of their minor children. Parents are adopting new methods to invest in high-value properties while staying within the Reserve Bank of India limits. There are many technical and legal details associated with the process, where accurate information and transparency becomes crucial. Any oversight can lead to significant fines or legal action.

Whether it’s a house in California or luxurious bungalows Dubai’s Emirates Hills and Palm Jumeirah, Indians have their eyes on everything. The UAE has emerged as a top destination for such investments. For acquiring these properties, parents are sending money abroad through minors under the Liberalised Remittance Scheme (LRS) of the RBI.

According to a Times of India report, due to increased scrutiny on foreign investments and stringent penalties under the Black Money Act, high net worth individuals are seeking experts’ advice.

What is LRS and how has buying a house abroad became more difficult?

Under the RBI’s Liberalised Remittance Scheme, an individual can remit no more than $250,000 (approximately Rs 2.08 crore) abroad in a financial year, including for property purchases. As per the amendment that came into effect from August 24, 2022, if the amount sent abroad is not invested within 180 days, it must be brought back to India.

Previously, individuals would accumulate sufficient funds in foreign bank accounts to purchase high-value properties. However, the 180-day limit has complicated this process, leading people to explore new methods to avoid the complexities of foreign investing.

Why use minors?

As a workaround the rules, minors are being used to accumulate sufficient funds for purchasing property. Gautam Nayak, tax partner, CNK & Associates, explains: “Minors can remit money abroad under LRS using gifts received from parents, and such gifts are not taxable in India.”

For example, if a couple and their two minor children remit money to buy property in Dubai, the property should be registered in the names of all four, including the minors. Dubai real estate experts note that minors can hold property through a guardian or trustee, with no legal implications from Indian regulations.

Experts also point out that every Indian taxpayer who owns foreign assets must declare them while filing income tax returns (ITR). If income is generated from these foreign assets, it must be reported in Schedule FSI (Income Received from Foreign Source). Failure to provide accurate details can result in a penalty of Rs 10 lakh under the Black Money Act.

Rutvik Sanghvi, partner at Rashmin Sanghvi & Associates, explains, “If a foreign property generates income, such as rental income, it will be clubbed with the parent’s income. The ‘beneficiary’ (the child) is not required to file tax returns if the income if linked to another individual.”

However, this matter is complex. If a minor is a co-owner of a property in Dubai, he is not just a beneficiary. Indian tax rules allow for the clubbing of income but not for the clubbing of property ownership.

Gautam Nayak elaborates, “The minor’s tax return must be filed by the parent acting as guardian, but this cannot be done without proof of income received in the minor’s account.”

The UK government has decided to snub Elon Musk from its International Investment Summit in October in the wake of controversial social media posts made by one of the wealthiest men on the planet during nationwide riots in the country.

The unrest began in the last week of July after the stabbing of three children in Southport, which led to widespread violence and anti-immigrant sentiments. During the nationwide riots in the UK, X platform owner Musk predicted a “civil war” in the UK and shared untrue claims about the government creating “detainment camps” for rioters, according to BBC.

His comments drew sharp criticism from British officials, including Justice Minister Heidi Alexander, who called his remarks “totally unjustifiable” and “pretty deplorable.” The summit, scheduled for October 14, is a key event for Prime Minister Keir Starmer, who aims to attract significant foreign investment to boost the UK economy.

Musk attended last year’s summit and played a prominent role in November’s AI Summit, where he engaged in discussions with then-Prime Minister Rishi Sunak. Musk’s absence from the upcoming summit reflects concerns over misinformation’s role in fueling violence, the British broadcaster said. UK media reports said the British government is considering strengthening its Online Safety Act to combat harmful content on social media platforms.

PM Starmer has emphasised the need for a “mature conversation” with tech companies about their responsibilities. Despite not being invited this year, Musk remains a key figure in global tech and investment circles. His net worth is estimated at around USD 228 billion, primarily due to his stakes in Tesla and SpaceX. Known for his blood statements and shifting political affiliations, Musk continues to be a polarising figure in both business and politics.

Lebanese Prime Minister Najib Mikati expressed hope that a ceasefire can be reached soon to end fighting between Israel and Iran-backed Hezbollah that has shaken his country and raised fears of a ground invasion.

The United States, France and several allies called for an immediate 21-day ceasefire across the Israel-Lebanon border while also expressing support for a ceasefire in Gaza following intense discussions at the United Nations on Wednesday.

Israeli Prime Minister Benjamin Netanyahu, heading to New York to address the United Nations, said he had not yet given his response to the ceasefire proposal and had instructed the army to fight on. Hardliners in his government said Israel should reject the truce and keep hitting Hezbollah.

Meanwhile, there was no let-up in violence. Israeli airstrikes overnight hit around 75 Hezbollah targets in the Bekaa Valley and southern Lebanon, including weapons storage facilities and ready-to-fire launchers, the Israeli military said on Thursday.

In the latest deadly strike, at least 23 Syrians, most of them women and children, were killed when Israel hit a three-story building in the Lebanese town of Younine overnight, the town’s mayor, Ali Qusas, told Reuters. Lebanon is home to around 1.5 million Syrians who fled civil war there.

The Israeli military said dozens of Hezbollah targets were attacked, including terrorists, military buildings and weapons depots, in several areas this morning. Around 45 projectiles were fired from Lebanon towards the western Galilee area, some of which were intercepted with the rest falling on open ground, said the Israeli military.

Netanyahu repeated pledges to ensure that tens of thousands of Israelis evacuated from northern border areas can return home. Finance Minister Bezalel Smotrich, who heads one of two nationalist-religious factions in the governing coalition, said Hezbollah should be crushed and that only its surrender would make it possible for the evacuees to return.

Mikati welcomed the call for a truce but said the key to its implementation was whether Israel, which has been moving troops closer to Lebanon, is committed to enforcing international resolutions. Asked if a ceasefire could be secured soon, Mikati told Reuters: “Hopefully, yes.” Mikati’s caretaker administration includes ministers chosen by Hezbollah, widely seen as the country’s most powerful political force.

The ceasefire would apply to the Israel-Lebanon “Blue Line,” the demarcation line between the countries, and would allow the parties to negotiate towards a potential diplomatic resolution of the conflict, a senior Biden administration official said. UN Special Coordinator for Lebanon Jeanine Hennis-Plasschaert on Thursday welcomed the call for an immediate 21-day ceasefire to allow the space for diplomacy to succeed.

AIRSTRIKES POUND LEBANON

Israel has made a priority of securing its northern border and allowing the return there of some 70,000 residents displaced by near-daily exchanges of fire, which Hezbollah initiated a year ago in solidarity with the Palestinian group Hamas in Gaza.

Israel widened its airstrikes in Lebanon on Wednesday and at least 72 people were killed, according to a Reuters compilation of Lebanese health ministry statements. The ministry earlier said at least 223 were wounded. Israel’s heaviest airstrikes on Lebanon in nearly two decades sharply intensified since Monday, when more than 550 people were killed in Lebanon’s deadliest day since the end of a 1975-1990 civil war.

Around half a million Lebanese have fled their homes and hospitals have been overwhelmed with the wounded. The bombing follows attacks last week when pagers and walkie talkies exploded across Lebanon, killing scores of people and wounding thousands.

Israel’s military chief said a ground assault was possible, raising fears the conflict could spark a wider Middle East war. Hezbollah and Hamas are both parts of a network of armed groups sponsored by Iran across the region. Israel’s U.N. Ambassador Danny Danon told reporters before a U.N. Security Council meeting on Wednesday that Israel would welcome a ceasefire and preferred a diplomatic solution.

He then told the Security Council that Iran was the nexus of violence in the region and peace required dismantling the threat. World leaders voiced concern that the conflict – running in parallel to Israel’s war in Gaza – was escalating rapidly. Israeli airstrikes this week have targeted Hezbollah leaders and hit hundreds of sites deep inside Lebanon. The group has responded with barrages of rockets fired into Israel.

(This story has not been edited by News18 staff and is published from a syndicated news agency feed – Reuters)

After a thunderous response received by the first episode of the second season of The Great Indian Kapil Show, comedian Kapil Sharma is all geared up with the second episode. Netflix took to its social media to share the promo videos of the next episode and fans cannot keep calm as the new episode will be graced by Jr NTR and Saif Ali Khan.

Taking to their Instagram handle, Netflix dropped the new promo video which gives fans a sneak peek into the second episode of The Great Indian Kapil Show Season 2. The video shows host Kapil Sharma asking Jr NTR to narrate a line in Punjabi. The actor shies away when Sharma reveals that he will be giving him a romantic dialogue to narrate. Jr NTR speaks to Archana Puran Singh and mentions how he still remembers her as Mrs. Briganza from Kuch Kuch Hota Hai.

Take a look at the video here.

Sportingly, the actor takes on the role and narrates the dialogue where Sharma asks him to say that every time he looks at Singh he gets nightmares. The line gets everyone laughing in the audience. Jr NTR and Khan will be gracing The Great Indian Kapil Show to promote their upcoming movie, Devara: Part 1. Directed by Koratala Siva, the movie revolves around a man who embarks on a sea journey to protect his people. The movie will feature Jr NTR in a dual role. Apart from these two actors, the movie also stars Janhvi Kapoor in the lead role.

Sharma announced the second season of The Great Indian Kapil Show last month. The second season includes Sunil Grover, Krushna Abhishek, Kiku Sharda, and Rajiv Thakur. New episodes are made available to stream on Netflix on the weekends from 8 PM onwards.

UK’s Prince Harry celebrated his 40th birthday on September 15, with warm wishes from his sister-in-law Kate Middleton and brother Prince William. Kate reportedly played a key role in crafting the birthday message shared on the official accounts of the Prince and Princess of Wales after noticing signs that Harry was feeling “homesick.”

The heartfelt message posted on X read: “Wishing a Happy 40th Birthday to The Duke of Sussex!” An insider quoted by the Daily Express noted that Kate’s concern for Harry motivated this gesture, as she wanted to ensure he felt supported despite the physical distance between them.

‘Driving force’

UK media reports suggest that this public acknowledgment is meaningful given the ongoing tensions between Harry and his elder brother Prince William. According to the report, Kate has been a “driving force” in reaching out to Harry, aiming to restore some peace and forgiveness within the royal family. She stressed to William that this was not the time for resentment, advocating for a display of love and unity.

Despite living in California with the Duchess of Sussex and their children, Prince Archie and Princess Lilibet, Harry celebrated his special day surrounded by family before heading out for a gathering with friends.

These birthday messages mark the first public acknowledgment from the royal family since 2021, following Harry’s controversial claims about family dynamics during his interview with Oprah Winfrey and in his memoir, Spare. Kate’s outreach, which included a thoughtful gift and a birthday call, reportedly meant a great deal to Harry.