Category: Uncategorized
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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…
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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…
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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…
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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…
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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…
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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:…
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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…