Category: Uncategorized
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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…
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Indian Citizenship Act and Overseas Citizen of India (OCI) scheme Rules: An Overview
Today we will discuss about the rules and regulations in India on citizenship as well as the Overseas Citizenship Scheme launched by the Government in 2005. Citizenship and Tax Residency are 2 different things First things first, let us understand that as per Indian law, citizenship is different from tax residency. While the former is…
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How NRIs can apply online for PAN in India
As per the Income Tax rules in India, an NRI is not required to hold a Permanent Account Number (PAN). However, in case he/she needs to enter into a financial transaction or wish to file a tax return in India, a PAN is required. This is especially gaining importance due to recent regulatory changes where…
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Penalty & Compounding Provisions under FEMA
I’ve written quite a few posts on applicability of FEMA in transactions by residents as well as non-residents (Read: Posts on FEMA). One question that crops up in mind of a few clients that I’ve worked with who by ignorance of FEMA, stepped on the wrong side of FEMA law and now want to know…