Category: Uncategorized
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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…
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Gift by NRI to Resident: Be aware of Section 68 of Income Tax Act
I receive a lot of queries on the tax implications in India in case an NRI makes a gift to a family member or a friend in India. While it is fairly widely known that Section 56 of the Income Tax Act (ITA) exempts gift from relative irrespective of the amount, not many people know…
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How NRI should disclose their foreign income/ assets in Indian tax return
The regulatory landscape in India & across the world is fast changing. Countries are increasing becoming aware of the risks of tax evasion & are creating new mechanisms like the CRS and India has also recently enacted Black Money Act, which contains stringent penalties if residents fail to disclose their foreign income & assets to…
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Indian Tax Residency Rules for Persons of Indian Origin (PIO)/ Overseas Citizens of India (OCI)
A few days back, I was working on a case of a Person of Indian Origin (PIO) who had been staying in India for all these years to take care of ailing parents, and plans to move out of India since they’ve passed away, however would want to come to India for some days every…
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Should I retain my US citizenship/ Green Card on Return to India?
For families who have stayed back in the USA for a considerable time and obtained a US citizenship (USC) or a green card (GC), and now returning back to India for a better career opportunity, or taking care of parents or with an intent to retire back in India, a top of the mind question…
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Should NRIs invest in real estate in India
When it comes to NRI investment in India and interacting regularly with NRI clients, I’ve seen a disproportionate interest in NRIs into real estate as an asset class. Today, I am presenting my view on real estate as an asset class, present market in India and whether it makes sense for NRIs to invest in…
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Should NRI buy non-INR life insurance policies outside India?
On a routine basis, as part of my advisory work with NRI clients, I see NRIs holding overseas policies from insurers like Zurich, Metlife, LIC International etc. These may be pure term policies or investment-cum-insurance policies. As a matter of my due diligence, I ask for and review the policy wordings because as they say,…
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Understanding US and India Tax Implications on “gift” transactions
As you may be aware, unlike India, in the US, there is something known as “estate tax”. That means, any property devolving on the heirs on death carries a tax that needs to be paid from the estate. To evade this tax, people used to gift assets during their lifetime. Hence, to curb revenue loss,…
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Tax Implications on Money Transfer between NRI and Resident
A very common query I come across of NRI’s settled outside is regarding the India tax implication of the transfer of money – to the NRI as well as the person to whom transfer is made. Today, I will be clarifying on this aspect using different scenarios. First things first: Clarify on the nature of…
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Foreign company deputing employees to India: Possible tax issues
Many foreign companies set up business in India through a wholly owned subsidiary structure. The foreign company generally also provides an initial set up support to the subsidiary staff by deputing its employees to such subsidiary for a definite period. Simple as it seems, this arrangement can bring a host of tax complications. In this…