Category: Uncategorized
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Raman Chopra Case – Salary earned in USA is exempt if person qualifies as USA resident under India-USA DTAA
Lot of NRIs based out of USA return back to India after some years. As a result of this, in the year of return, they might have worked in USA for some months & at the same time, lived in India for more than 182 days in the year. Since the person has lived >182…
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Financial planning considerations for returning NRI families
Today, India is pretty much everywhere across the globe. If you follow cricket, then a live testimony of this fact could be seen in the recently concluded India vs Australia series where looking at the crowds, it was difficult to fathom whether the match was being played in Australia or India! Speaking of hard…
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Returning NRI having foreign income/assets should make full use of RNOR phase
For an NRI who returns back to India, generally speaking (and it can differ from case to case), his residential status remains as a “Resident and Not Ordinarily Resident” (RNOR) for a couple of years post his return. In most of the cases, such NRIs may have investments outside India and they’re not sure what…
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Indian Tax issues in case of Offshore Private Trust: An Overview
Lot of returning NRIs prefer to create a private trust in a low tax jurisdiction and transfer their assets out of their overseas earnings into that trust, for beneficiaries who are generally children and family members. In my earlier post, I’ve discussed the taxation of private trust in India. However, some specific tax issues exist…
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Tax implications of “gift transactions“
Today, I will share one important tax provision that is often neglected and ignored because of not being aware about it and that is “taxability of gifts”. Effective October 1, 2009, as per Section 56(2)(vii)/(viia))/(viib) of Income Tax Act, 1961, if an individual/ HUF receives a sum of money or property without consideration or with…
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Remittance facilities to NRI & Expats under FEMA
In one of my earlier posts, I had discussed about the Liberalised Remittance Scheme (LRS) Link which is available only to residents under the FEMA law. However, a question may arise that what about NRI or expats? Are they allowed to remit the proceeds of their Indian investments outside India? What are the conditions around…
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NRIs: Don’t go overboard on NRE FDs
Ati sarvatra varjayate (Translated: Excess of everything is bad) There are many avenues for NRIs to invest in the Indian markets. When it comes to a fixed income avenue, the NRE FD stands out as a preferred choice for NRIs, especially because the returns (around 7-8% per annum) are completely tax free in India and…
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NRI buying property in India – Dos & Don’ts
Property is a first choice for NRIs when they consider investing back in India, given the fact that real estate as an asset class has given handsome returns. Also, given that NRIs have a soft corner towards their family back in India, they plan to come back to India in future and hence, own home…
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FEMA Implications on acquisition of property in India
Real Estate has always been a preferred investment choice for NRI community. However, it is very important for NRI community to know that the foreign exchange law of India FEMA has established certain rules and regulations around conducting a property transaction in India. In case you knowingly or unknowingly fail to comply with the FEMA…
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FEMA Implications on NRI Loan Transactions: A Scenario-wise Analysis
Lot of times NRIs wish to do a loan/gift transaction with their relatives or friends or a reverse way, a resident wants to send money overseas to NRI relatives. It is here that very few people know that such transactions are regulated under FEMA. Under FEMA, RBI has delegated compliance responsibility to the Authorised Dealer…