Category: Uncategorized
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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 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…
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Financial strategy for NRI/PIOs returning for short duration to India
Given the lifestyle one gets accustomed to having stayed back outside India for long, there are NRIs who return back to India only for some short term work assignment BUT have a clear intention to move out of India after the said assignment is over. And to what I came to know to my pleasant…
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Foreign Tax Credit Rules in Indian Tax Law: An Overview
In case of cross border transactions, there may be a situation that tax is withheld or paid in other country however the transaction is also taxable in India. In such situations, Section 90 and 91 of Income Tax Act (ITA) allows credit of such foreign tax however there was a lack of procedural clarity on…
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NRI becoming “Resident” in a particular year: Implications
Recently, while advising a returning NRI client, I came across a situation where he had to overstay in India in this financial year because of his mother’s illness and he wanted to check whether he qualified as a resident as per Indian tax law – and if he did so, what will be the implications…