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FEMA Implications w.r.t. Purchase/Sale of Immovable Property Outside India
Purchasing immovable property outside India involves consideration from multiple angles as follows: In this post, I am only discussing the FEMA law on such transactions and whether it is allowed or not. In subsequent posts, I will be covering the other angles and post a link here. Please note that following acronyms have been used…
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NRI Guide to claiming lower deduction tax certificate from Income Tax Department
Some time back, I wrote a post on TDS rates for payment to NRI. In that post, I’ve discussed why in most of the times especially in property transactions, the NRI seller will face TDS @ 20.60%/ 30.90% (or 23.07%/ 35.535% in case property value > 1 CR) on the FULL SALE CONSIDERATION of the…
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International Investing by Resident Indians: An Analysis
Disclaimer: Over a period of time in my work as an investment adviser, I have realised the importance of diversification & asset allocation (not only between asset classes but geographically as well) and the importance of super low cost investment avenues like index funds. In case of NRI portfolios, a huge chunk of the portfolio…
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Indian mutual fund investments by US-based NRIs: Tax implications & Options
A lot of skilled workforce from India migrates to the USA every year in search of better career opportunities. Given the US government’s policy stance of having in place a culturally diverse population, a sub-set of migrant Indian community do apply & qualify for a US citizenship after a few years of stay in the…
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IRS Foreign Bank Account Reporting (FBAR) by US-based NRI
In this earlier post, we have discussed about FATCA and CRS and why US NRI need not fear these new developments as long they are assessing their tax residency properly, offering full income in their tax returns and filing proper reports with the IRS. Speaking of reports, there are two main reports that a US…
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IRS Form 8938 Reporting – An Overview
In an earlier post, we have discussed about FATCA and CRS and why US NRI need not fear these new developments as long they are assessing their tax residency properly, offering full income in their tax returns and filing proper reports with the IRS. Speaking of reports, there are two main reports that a US…
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NRI Definition: FEMA Act VS Income Tax Act
It is common knowledge that in the Indian legal system, there are a different set of rules for NRIs. Then, there are different laws that apply to NRIs and each law defines NRI differently. A big confusion then, is what exactly the definition of NRI is, do I qualify as NRI in the first place…
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Shah Rukh Khan [ITAT] – Income from UAE property is taxable in India
A contentious issue that NRIs who return from tax haven countries like UAE face is regarding the India taxation of their properties back in UAE. In this regard, the Mumbai Bench of the Income Tax Appellate Tribunal [ITAT] has delivered a judgment in the case of Shah Rukh Khan v. Assistant Commissioner of Income-tax, Cen.…
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FEMA Rules on Overseas Direct Investment by Indian Co./Resident Individual
Over the years, in keeping up with liberalization and promotion of foreign trade, RBI has liberalised the rules on allowing Indian companies/resident individuals to set up companies and make investments abroad, which is terms as overseas direct investment (ODI). Today, I am going to discuss and present a broad overview of those rules which an…
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A Financial Checklist for the Returning NRI
There is a large segment of professionals who leave the shores for better opportunities but long to returning back to their motherland. While there are a host of things involved from packing all the stuff to searching for good schooling back in India, the financial gamut of things is something that is most complex and…