Category: Uncategorized
-
Review of India-focussed mutual funds in the USA
Some days back, I was working on a profile a USA based NRI who was finding it tough to invest in Indian mutual funds but also did not want to lose out on India’s long term growth story. I tried to find out if there are dedicated funds in USA that invest in India. In…
-
Taxability of hypothetical tax & tax equalisation for expats working in India
It is almost a standard compensation practice that employers follow for its employees working in overseas locations to have a tax equalisation policy. Because of lack of awareness, expats face an issue as to whether to offer the hypothetical tax in tax return or not. Good news is that there are ample judgements by Indian…
-
Taxation of Private Trusts in India: An Overview
Private trust is an instrument used mainly by HNI families or families having special needs children, for effective succession planning. There are many benefits of forming a private trust, over a will. However private trust creation and ongoing trust management necessitates a cost, which makes it viable only if a high corpus is available. In…
-
FEMA Rules on NRI Investment in Indian Company/LLP
It is well known that an NRI can invest in India via a portfolio investment scheme (PIS) route i.e. by purchasing and selling shares on a stock exchange through a Depository Participant. As regards PIS investment, I have already written a detailed post on it, you can refer it here: How returning NRIs can invest…
-
Effect of Indian Rupee (INR) depreciation on Resident & Non-Resident Indians (NRI)
In the below table I have given a brief summary of how INR depriciation impacts the various categories of investors (Resident/NRI/Students etc.) Category Effect of rupee depreciation & Remedial Steps NRI/PIOs Effect: Rupee depreciation has been positive for those remitting to India for investments or for household expenses of dependants etc. Remedial Steps:…
-
NRI Tax Implication w.r.t. Immovable Property Transaction in India
NRIs have always invested heavily in properties in India. Even in the current times of low domestic demand, whatever demand is left is primarily coming from NRIs based abroad. However, many NRIs I have interacted as part of my professional work have been completely clueless about tax implications in India, on their property transactions. Some…
-
NRIs: Think twice before buying property in your parent’s name
A very common dilemma that NRIs face while buying property in India – whether to buy on own name or on parents’ name. Today, I will write on this issue – reasons why NRIs prefer registering properties on parents’ name, possible legal and succession related implications and finally my view. Common reasons NRI buy property…
-
Non Resident Ordinary (NRO) Account: All you wanted to know
Till a person is a resident of India, he can have the regular resident savings accounts and fixed deposits. However, as per the Foreign Exchange Management Act (FEMA), a person who becomes resident out of India (or in simple terms, an NRI) cannot have these basic resident accounts. He has to “re-designate” these accounts as…
-
Tax and FEMA issues faced by PIO/OCI living and working in India
If you are an OCI and are living and working in India, you can face confusion at each step of the way in your financial dealings in India. In this post, I am trying to address some of the questions of such OCIs in a form of a FAQ. Please note that for the purpose…
-
How Ireland-based NRIs can transfer their Pension on return to India
Last month, I was working on a case of an Ireland based Person of Indian Origin (PIO) who had returned back to India. He had worked in Ireland for good many years and accumulated a good amount of pension. This pension is termed as occupational pension in Ireland. It took him some time to settle…