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PODCAST FOR NRIs – TIME TO INCREASE INVESTMENT ALLOCATION TOWARDS INDIA.

PODCAST FOR NRIs – TIME TO INCREASE INVESTMENT ALLOCATION TOWARDS INDIA.

Please find herewith the link for the same:

📣 Link – https://www.instagram.com/reel/CichYRZvxb6/?utm_source=ig_web_copy_link

The thoughts which have been delivered are the views of CA Rajit Kothari-Executive Director of Ashutosh Financial Services Pvt. Ltd.

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Disclaimer: These are personal views of CA Rajit Kothari, which should not be acted upon without taking specific professional advice.
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FILING OF INDIAN INCOME TAX RETURN FOR NON-RESIDENT INDIAN (NRI)

▪️ Is it mandatory for a NRI to file Income Tax Return in India ❓

▪️ What are the conditions which makes it mandatory to file Income Tax Return in India ❓

▪️ What are the advantages of filing Income Tax Return in India ❓

👉 Please find the below link for the above topic.

For further details feel free to contact us.

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BASICS OF BANKING REGULATIONS WHICH ALL NRIs SHOULD KNOW

👉 Please find the below link for the above topic.

For further details feel free to contact us.

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Estate Planning For NRIs – WILL in respect to Indian Assets

A WILL valid under the Indian Succession Act should be made by NRIs in respect of their Indian Assets.

👉 Please find the below link for the above topic.

For further details feel free to contact us.

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Life insurance (Term Plan) for NRIs (Non-resident Indians) through which NRIs can get large amount of insurance from India at a very small premium.

Life insurance (Term Plan) for NRIs (Non-resident Indians) through which NRIs can get large amount of insurance from India at a very small premium.

👉 Please find the below link for the above topic.

For further details feel free to contact us.

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Beneficial provisions for NRI to avoid excess payment of taxes on sale of assets in India.

➡️ What are the Provisions under the Income Tax Act in regard to Tax Deduction at Source ( TDS) in respect of NRIs ❓

➡️ How to ensure that right amount of tax is deducted at source so that NRIs need not to fall in the hassle of claiming refund ❓

👉 Please find below the link on the above subject by Mr. Daxesh Kothari – Tax & Financial Consultant and MD & CEO of our company.

For further details feel free to contact us
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FILING OF INDIAN INCOME TAX RETURN FOR NON-RESIDENT INDIAN (NRI)

➡️ Is it mandatory for an NRI to file Income Tax Return in India ❓

It is mandatory for an NRI to file Income Tax Return in India if:

1️⃣ The Income exceeds Rs. 2.5 lakhs in India during the year (before giving effect of deductions under Chapter VI-A and certain capital gains exemptions)

2️⃣ Following categories of persons irrespective of the income:

▪️ Deposited an amount exceeding Rs.1 crore in current account/s by any mode during the year or
▪️ The deposit in one or more savings bank account of the person, in aggregate, is rupees fifty lakh or more during the previous year or
▪️ If his total sales, turnover or gross receipts, as the case may be, in the business exceeds sixty lakh rupees during the previous year; or
▪️ If his total gross receipts in profession exceeds ten lakh rupees during the previous year; or
▪️ If the aggregate of tax deducted at source and tax collected at source during the previous year, in the case of the person, is twenty-five thousand rupees or more; or
▪️ Incurred electricity expenditure in aggregate exceeding Rs.1 lakh or
▪️ Incurred an expenditure exceeding Rs. 2 lakh on travel out of India from Indian bank account/s for himself or any other person.

3️⃣ Any taxable capital gain realized in India (Irrespective of basic tax slab exemption i.e. 2.5L).

In other cases, it is not mandatory for any NRI to file an Income Tax Return in India. However, one may choose to voluntarily file it because of several advantages.

➡️ What are the advantages of voluntarily filing Income Tax Return for an NRI?

▪️ Claiming refund of any taxes which have been withheld (TDS deducted).
▪️ Carry forward losses for claiming set-off against future year incomes.
▪️ Obtaining credit of income taxes paid in India against taxes payable in the country of tax residence (where the NRI resides) as per the Double Taxation Avoidance Agreement (DTAA).

➡️ What are the due dates of filing Income Tax Return in India for an NRI?

For Financial Year 2021-22 ended on 31st March, 2022, the last date of filing Income Tax Returns is 31st July, 2022.

Contact us at the earliest to file your Income Tax Returns and become a compliant and proud Indian.

For further details, contact us:
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US Green Card holders who stays in India for a large part of year makes them Tax Resident of two different countries and are liable to Income Tax in both the jurisdiction…..is there a way out ?…DTAA (Double Taxation Avoidance Agreement)

➡️ There are taxation laws of different countries applicable to a person on account of his residential status in different countries.

➡️ What are the provisions to claim the relief under the DTAA ❓

➡️ What are the formalities or compliances to be done in order to claim the relief under DTAA ❓

👉 Please find below the link on the above subject by Mr. Daxesh Kothari – Tax & Financial Consultant and MD & CEO of our company.

For further details feel free to contact us
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Taxation Benefits for NRIs under Double Taxation Avoidance Agreement(DTAA)

➡️ It is important for NRIs to understand how their incomes would be taxed in the country where they are tax residents and countries other than the country where they are tax residents.

➡️ Will this lead to double taxation of the income ❓

➡️ What are the taxation benefits available to NRIs under Double Taxation Avoidance Agreements (DTAA) ❓

➡️ Are there concessional rates of tax or relief provisions available under DTAA ❓

➡️ If there are beneficial provisions under the DTAA or under the Income Tax law of the country or vice versa, what would be applicable ❓

👉 To know more about the various benefits available to NRIs under DTAA watch both the parts of our video.

👉 Please find below the link on the above subject by Mr. Daxesh Kothari – Tax & Financial Consultant and MD & CEO of our company.

PART 1 – https://youtu.be/Y1Fk5LQ6i-g
PART 2 – https://youtu.be/342tcyCXF50

For further details feel free to contact us
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Life insurance (Term Plan) for NRIs (Non-resident Indians) through which NRIs can get large amount of insurance from India at a very small premium.

A Term Plan is a pure form of Life insurance, which has following features:

◾ Get claim of large lump-sum amount globally in case of death/disability/critical illness, which can secure your family by providing financial protection in your absence.

◾ NRIs with age band of 18 to 65 years can apply for Term plan, based on the criteria like annual income, health condition and existing life insurance amount.

◾ Flexibility in years of insurance and premiums, for how many years you want life cover and for how many years you want to pay premium.

◾ Specially for NRIs, an 18 year old person will be able to take a term plan of Rs. 1 Crore till he reaches the age of 65 only @ Rs. 20 premium per day. Same way 30 year old person can get @ 28.50/- rupees a day and 40 year old person can get @ 47/- rupees a day.

◾ Non-smoker and non-Tobacco user can get more benefit in premium amount.

◾ Women can get lower premium for insurance than men.

◾ Choose the option for refund of your all premiums paid after the end of the policy term.

◾ Choose additional riders such as a rider with to get a lump sum amount when critical illnesses occur or a rider with the benefit of accidental death.

◾ Choose increasing and decreasing sum assured options.

◾ NRIs can also claim tax benefits under section 80(C) of Income Tax Act.

✅ We offer insurance plans of many companies, we suggest best plan suitable for NRIs after comparing the plans of all these companies, with the lowest premium, best company and best features as per your requirements.

For further details feel free to contact us
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Rules For Repatriation Of Current Income Outside India

Repatriation is the process in which funds are transferred freely from one country to another in foreign currency. A NRI can open NRO, NRE & FCNR-B accounts in India and when you move your money from the NRO account to NRE account or to an account in your country of residence, it is called repatriation.

What can be repatriated and how much ?

  • Current Income ( Salary, Investment, Interest, Business Profits) – No Limit
  • Movable Assets ( Sale Proceeds Of Asset Acquired As Inheritance) – USD 1 Million Per Financial Year.
  • Immovable Assets ( Sales Proceeds Of Residential Asset) – USD 1 Million Per Financial Year.

FEMA Rules Regarding Repatriation ?

  • There are Income Tax implications in India every time you repatriate funds.
  • You can cumulatively repatriate current income earned in any year in that year itself or the subsequent years
  • You can transfer or repatriate funds from your NRE account freely without any limit
  • Your NRO account balance should hold legitimate dues receivable in India and not through borrowing from another person or funds transferred from another NRO account
  • In case of residential property, you can repatriate sale proceeds of up to two such properties.

Can You Cross The Repatriation Limit ?

Yes, the RBI does allow you to repatriate funds higher than the preset limits only after explicit approval. The situations in which you may request to increase the permissible limit include medical emergencies, children’s education, or purchasing the property back in your country of residence.

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HOW NRIs CAN PREPARE A WILL FOR TRANSFERRING ASSETS TO BENEFICIARIES IN THE DESIRED MANNER?

A Will valid under the Indian Succession Act should to be made by NRIs in respect of their Indian Assets.

The Indian Laws of Succession shall apply on the Indian Assets hence a Will valid under the Indian Succession Act should be made by NRIs, it has to have all the essential elements of a valid Will as listed in the following points.

🟥 The Will has to be in writing with precise details of the assets to be passed to the beneficiaries in the desired manner.

🟥 The names and details of the beneficiaries under the Will to whom assets are to be passed have to be clearly stated.

🟥 The person preparing the Will has to be identifiable along with his signature and date on which the Will is executed.

🟥 Signatures of two adult witnesses with their identification have to be obtained. It is advisable to have witnesses who are younger than the person preparing the Will and also have Doctor as a witness in case of an aged person preparing the Will. A witness should not be a beneficiary in the Will.

🟥 It is advisable to execute declarations of the two witnesses confirming the fact that they are the witness of the Will. These Declarations can be filed in court at the time of obtaining the probate after death.

🟥 Person signing the Will can sign before Notary Public or get the Will Registered at any authorized sub-registrar.

However, none of the two procedures are mandatory under law.

🟥 The person preparing the Will can appoint an executor (including a beneficiary) for executing the transfer of his/her assets to the intended beneficiaries. However, such an appointment is not mandatory.

🟥 Whether to sign the Will, without Notary, before Notary or get the same registered or to appoint an executor, depends on the facts & circumstances of the case.

IT IS NOT NECESSARY THAT THE NRI HAS TO BE IN INDIA TO PREPARE A WILL IT CAN BE EXECUTED EVEN OUT OF INDIA.
IT IS ALWAYS ADVISABLE TO MAKE A WILL IN RESPECT OF ALL YOUR INDIAN ASSETS SO THAT ONE CAN TRANSFER THE WEALTH TO THE INTENDED BENEFICIARIES IN THE DESIRED MANNER.

➡️ Contact us to plan the succession of your wealth to your successors in a legitimate, convenient and efficient manner.

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CAPITAL PROTECTION COUPLED WITH GROWTH, AN ATTRACTIVE INVESTMENT STRATEGY FOR NRIs IN INDIA

CAPITAL PROTECTION COUPLED WITH GROWTH, AN ATTRACTIVE INVESTMENT STRATEGY FOR NRIs IN INDIA.

Combination of NRE Fixed Deposit and Systematic Investment Plans (SIP) in Equity Mutual Funds.

➡️ Concept:

NRI Investors largely invest in Fixed Deposits (FDs) because they want safety of principal. What if, an investment offers safety of principal equivalent to FDs, but relatively higher returns than FDs? The following is the novel investment idea that gives capital protection and growth.

➡️ Three Step Investment Guide:

Step 1: Investment in NRE FDs for 5 years.
Step 2: Choose the option of annual interest payout.
Step 3: Invest the interest income in equity funds every year by monthly SIP.

➡️ Example:

Step 1: Investment in NRE FDs.

▪️ Investment in FDs: Rs. 25,00,000.
▪️ Annual Rate of interest: 5.50 per cent.
▪️ Duration of investment: 5 Years.
▪️ Investment Option: Annual Interest Payout.
▪️ Expected Interest Income Every Year: Rs. 1,37,500.

Step 2: Annual interest payout.

▪️ On the above FD, expected interest income every year would be Rs. 1,37,500.

Step 3: Investment of interest income in equity funds every year.

▪️ Invest Rs. 1,37,500 every year to Equity Mutual Fund – Growth Plan.

▪️ Ideally it can be investment of Rs. 11,500 per month in Equity Mutual Fund by way of a SIP by adjusting the cash flow.

➡️ Value of Investment after 5 years:

▪️ Expected Value of Investment in Equity Mutual Fund: Rs. 9,48,593. (Returns assumed – 12 per cent).

▪️ FD Principal Repayment: Rs. 25,00,000.

▪️ Total Value of Investment at the end of 5 years: Rs. 34,48,593.

➡️ Benefits of Investment in Combination:

▪️ Ensures high Safety of Principal (i.e. risk-free investment).

▪️ Investment in Equity Market only through interest income.

▪️ Increased Expected Returns, with minimum risk.

▪️ Investment done through NRE account in fixed deposits and mutual funds along with their returns are fully repatraible.

➡️ Analysis:

▪️ INVESTMENT IN NRE FD

Investment Amount: Rs. 25,00,000
Maturity Amount at the end of 5 years: Rs. 32,67,400
Annualized Returns: 5.50%

▪️ INVESTMENT IN COMBINATION

Investment Amount: Rs. 25,00,000
Maturity Amount at the end of 5 years: Rs. 34,48,593
Annualized Returns: 6.64%

▪️ BENEFIT OF INVESTMENT IN COMBINATION: Rs. 1,81,193

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INDIAN GOVERNMENT HAS STARTED VIGILANCE AGAINST NON-COMPLIANT NON-RESIDENT INDIANS (NRI)

▪️ The Indian govt. has started seeking details of financial transactions from suspected non-compliant Non-Resident Indians. Please find attached the recent news article for reference.
▪️ Information such as details of fund sources, assets acquired, income tax return filing, etc. are sought by agencies such as the Enforcement Directorate (ED).
▪️ The suspected non-compliance is for wrongful declarations under FEMA (Foreign Exchange Management Act, 1999) as well the Income Tax Act for claiming incorrect residential status.
▪️ This implies that the person takes refuge of being under the Non-Resident status while filing Income Tax returns as well as in other financial transactions such as banking, investment, etc.
▪️ There are severe consequences of such wrongful declaration which can result in unwanted penalties as well prosecution under Income Tax Act and the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
▪️ Due date for filing Indian Income Tax return is 30th September, 2021. Let us comply with all taxation & regulatory laws of India not only to avoid unfavourable legal consequences, but also to become an honest and responsible Indian.
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For NRI Residing In Countries Where There Is No Income Tax (UAE Residents) – Clear Understanding Of The Applicability Of Deemed Residency Taxation Concept In India.

FOR NRI RESIDING IN COUNTRIES WHERE THERE IS NO INCOME TAX (UAE RESIDENTS) – CLEAR UNDERSTANDING OF THE APPLICABILITY OF DEEMED RESIDENCY TAXATION CONCEPT IN INDIA.
▶️ In the Finance Act 2020, the government announced that persons who are not ‘liable to tax’ (not subjected to any Income Tax law) in country of their residence, will be deemed to be Indian tax residents for the purposes of Income Tax if they satisfy the following two conditions:
i) Their Any Indian Incomes + Foreign incomes from Business controlled or Profession setup in India exceeds Rs.15 lakhs during the year.
ii) They do not become tax residents of any country in the world having an Income Tax law due to their physical stay (residence) or domicile or any similar reason.
▶️ There have been news articles suggesting that Non-Resident Indians (NRI) based in UAE and other countries where there is no Income tax can escape the above provisions since they have some incomes in other countries on which they pay some income tax. Copy of the one such article is attached herewith with appropriate markings.
▶️ Our view differs from that expressed in the news articles. We believe that the second condition of the new definition referred above would not get satisfied if a person has some income in other country on which income tax is paid since the new law would be applicable if the person is a resident or domicile of that country.
▶️ Hence, a person who is a resident or domicile of a country where there is no Income Tax law (E.g. UAE) will not escape from becoming the Indian Tax resident in India under the new provisions by simply having some income chargeable to income tax in some other country (E.g. U.K.).
▶️ Most of the NRI need not worry about these provisions as even if the two conditions referred above are satisfied, the NRI will be liable to tax only from Any Indian incomes and Foreign incomes from Business controlled or Profession setup in India and not on the foreign sourced incomes.
▶️ However, the NRI will have to file his/her Indian Income Tax return in the status of Resident But Not Ordinarily Resident status in such cases.
▶️ Please reach out in case of any further clarification.
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NRI & OCI Cardholders Are Allowed To Buy And Sell Immovable Properties In India – Recent Supreme Court Decision Not Applicable To Them

➡️ NRI & OCI CARDHOLDERS ARE ALLOWED TO BUY AND SELL IMMOVABLE PROPERTIES IN INDIA – RECENT SUPREME COURT DECISION NOT APPLICABLE TO THEM
◾ There have been news of restrictions being placed on Non-Resident Indians (NRI) and Overseas Citizen of India (OCI) cardholders to buy and sell immovable property in India.
◾ The news are based on the recent Supreme Court ruling of Asha John Divianathan v. Vikram Malhotra & Ors. (CIVIL APPEAL NO. 9546 OF 2010), in which the court mandated the foreign citizen from obtaining approval of the Reserve Bank of India (RBI) for transfer of property in India.
◾ The said ruling pertains to a legal matter in the years of 1977 & 1980, during which the Foreign Exchange Regulation Act (FERA), 1973 was in force for matters relating to buying & selling by foreign citizens of immovable properties in India.
◾ It must be noted that The Foreign Exchange Management Act (FEMA), 1999 has replaced the earlier law in such matters as on present date.
◾ The FEMA law clearly permits any Indian citizen and any OCI cardholder situated globally from buying & selling immovable property in India under CHAPTER IX of the Foreign Exchange Management (Non-debt Instruments) Rules, 2019.
◾ Any Indian citizen or OCI cardholder residing in any part of the world need not obtain any approval of the RBI or any other government authority for buying or selling immovable property in India.
◾ However, an Indian citizen or OCI cardholder residing outside India cannot purchase an agricultural land or farm house or plantation or enter into real estate business (real estate development and construction business is allowed)
◾ Please reach out to us in case of any further clarification.
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Filing Of Indian Income Tax Return For Non-Resident Indian (NRI)

FILING OF INDIAN INCOME TAX RETURN FOR NON-RESIDENT INDIAN (NRI)
➡️ Is it mandatory for an NRI to file Income Tax Return in India?
It is mandatory for an NRI to file Income Tax Return in India if:
1. The Income exceeds Rs. 2.5 lakhs in India during the year (before giving effect of deductions under Chapter VI-A and certain capital gains exemptions)
2. The NRI has during the year:
i. Deposited an amount exceeding Rs.1 crore in current account/s by any mode or
ii. Incurred electricity expenditure in aggregate exceeding Rs.1 lakh or
iii. Incurred an expenditure exceeding Rs. 2 lakh on travel out of India from Indian bank account/s for himself or any other person.
3. Any taxable capital gain realized in India (Irrespective of basic tax slab exemption i.e. 2.5L).
4. Any tax free income in India exceeding basic tax slab 2.5L.
In other cases, it is not mandatory for any NRI to file an Income Tax Return in India. However, one may choose to voluntarily file it because of several advantages.
➡️ What are the advantages of voluntarily filing Income Tax Return for an NRI?
The advantages of voluntarily filing Income Tax Return in India for an NRI are:
1. Claiming refund of any taxes which have been withheld (TDS deducted).
2. Carry forward losses for set-off against future year incomes.
3. Obtaining credit of income taxes paid in India against taxes payable in the country of tax residence (where the NRI resides) as per the Double Taxation Avoidance Agreement (DTAA).
➡️ What are the due dates of filing Income Tax Return in India for an NRI?
For Financial Year 2019-20, the last date of filing Income Tax Returns is 31st December, 2020.
Contact us at the earliest to file your Income Tax Returns and become a compliant and proud Indian.
For further details, contact us:
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Importance Of An Overseas Citizen Of India (OCI) Card For An Non-Resident Indian (NRI)

IMPORTANCE OF AN OVERSEAS CITIZEN OF INDIA (OCI) CARD FOR AN NON-RESIDENT INDIAN (NRI)
➡️ What is an Overseas Citizen of India (OCI) Card?
🔳 Overseas Citizen of India (OCI) Card is a form of immigration status permitting a foreign citizen of Indian origin to have meaningful connection with the Republic of India indefinitely.
🔳 An NRI must register as Overseas Citizen of India Cardholder under section 7A of the Citizenship Act, 1955 to become an OCI.
➡️ Why is it important to have an OCI Card for an NRI?
1. An OCI Card enables a person multiple entry, multi-purpose life long visa to visit India.
2. It is mandatory for an NRI to have an OCI Card as per the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 to:
a. Acquire any immovable property in India as per Chapter IX of the NDI Rules, 2019.
b. Invest in shares of any Indian company or any mutual funds or other securities permitted for NRIs as per Schedule III & IV of the NDI Rules, 2019.
c. Start a business in India in form of a proprietorship or partnership firm as per Schedule IV & VI of the NDI Rules, 2019.
➡️ How to register oneself as a OCI cardholder?
🔳 Applications for OCI can only be made online at www.ociservices.gov.in.
🔳 A person making an application is required to submit a photograph, along with application fee and several identification documents to prove the eligibility criteria.
🔳 It is mandatory to make fresh application for OCI Card on issuance of new passport in certain cases.
➡️ Conclusion
🔳 Holding an OCI Card is a must to engage in any meaningful financial transactions in India.
🔳 Several NRIs are unaware of this important provision.
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Burning Questions Of UAE & Other Gulf Countries Non-Resident Indians (NRIs)

Q.  How are NRIs from UAE/Gulf countries different from NRIs in US, UK, Canada, Australia, etc.?

UAE & Gulf Country NRIs Other Country NRIs (U.S.A., U.K., Canada, Australia, etc.)
1. No citizenship entitlements Gradual progression towards citizenship.
2. High probability of returning back to India. Low probability of returning back to India.
3. Investments are mainly concentrated towards India. Limited exposure to investments in India.

Q.  What should a person do before leaving India to become an NRI?

  • Execute documents with banks to redesignate Resident Indian bank accounts to NRO A/c.
  • Execute documents to open a NRE bank account.
  • Execute documents to redesignate status in investments like Mutual Funds, Shares (Demat A/c), etc. to NRI status.NRI can continue holding shares purchased in the demat account on non-repatriable basis.
  • Open a NRE-PIS account if you want to trade in shares on a regular basis.

Q.  What should an NRI do before coming back to India from abroad permanently from compliance perspective?
NRI returning to India for permanent settlement may continue to hold or own all types of foreign Assets

  • foreign currency,
  • foreign securities,
  • bank deposits,
  • Immovable properties if the same were held/owned by them when he was residing abroad for unlimited amount and for unlimited period, irrespective of the amount.

They are also allowed to gift such acquired property to any relative* including the person who is resident of India.
Foreign Assets:
Returning NRI are also allowed to purchase and sale the above mentioned foreign assets. However the payment for such purchase is to be made from Resident Foreign Currency (RFC) account maintained with bank in India for unlimited amount and for unlimited period, irrespective of the amount.
An resident holding any foreign assets or has signing authority in any foreign account is compulsorily  required to  file the income tax return irrespective of the  amount of taxable income under Section 139(1).
Procedure by NRI on Return to India:

Authorities Action
Insurance companies, Mutual Funds, shares held in companies Inform regarding the status of change from Non resident to Resident.
Bank Accounts Inform regarding the status of change from Non resident to Resident and convert the various bank accounts.

 

Old Bank Account New Bank Account
NRO Account Resident Saving Account
NRE Account Resident Savings account or Resident Foreign Currency Account(RFC) Account
FCNR Account Can be continued till maturity

Taxability of returning NRI Bank Interest Income

Account R & OR R but NOR  Non Resident
FCNR Account Deposit* Taxable Exempt Exempt
RFC Account Taxable Exempt Exempt
NRE Account converted to  Resident savings Account* Taxable** Taxable Not Applicable
NRE Account converted to RFC Account* Taxable Exempt Not Applicable

NRI are allowed to hold the FCNR and NRE term deposits till maturity with the  
   same interest rate, until completion of the term.
**Interest is taxable in India from the date of return to India and conversion to Resident savings account.
Note: Interest on any deposits & debenture interest taxable at concessional rate of 20% for returning NRI under section 115H.

Q.  How can an NRI transfer the funds to India and take those funds back abroad?

  • Transfer can be made to NRO, NRE A/c of self or gift to relatives under Income Tax Act (section 56) or remittances to own account are tax free in India.
  • Transfer of funds abroad:
    From NRE A/c: Freely repatriable without limit
    From NRO A/c: Under the ‘Remittance of Assets’ scheme of RBI up to USD 1 million per person per year.

Q.  What are the Income Tax compliances that an NRI has to undertake?

  • Non resident under the Indian Income Tax Act.
  • Only income which is sourced from India is taxable in India.
  • Income Tax Return is required to be filed by a NRI only in respect of Indian Incomes on which appropriate taxes are to be paid or refund can be claimed.
  • Foreign Assets and foreign incomes of NRI are outside the jurisdiction of the Indian tax authorities
  • Who is required to file Income Tax return in India?
  1. Person whose income exceeds Rs. 2.5 lakhs in India (before giving effect of deductions under Chapter VI-A and certain capital gains exemptions).
  2. Person who wants to claim refund of any taxes which have been withheld (TDS deducted).
  3. Following categories of persons irrespective of the income:
    1. Deposited an amount exceeding Rs.1 crore in current accounts by any mode during the year.
    2. Has incurred electricity expenditure in aggregate exceeding Rs.1 lakh during the year.

Incurred an expenditure exceeding Rs. 2 lakh on travel out of India from Indian bank account during the year for himself or any other person.

Q.  What are the issues faced by an NRI in buying/selling any immovable property in India with regard to procedural aspects?

  • Immovable property can be freely purchased and sold by NRI in India without any restriction through NRO bank A/c on a non-repatriable basis.
  • NRI cannot engage in real estate business in India, i.e. involving buying and selling on a regular basis to derive profit.
  • Sale proceeds of two residential house (purchased from foreign exchange) properties are repatriable without any limit. Further sale of residential properties will fall within the remittance of assets scheme for NRI.

How is income on sale of immovable property taxed for NRI in India?

Type of Income Taxation levy for NRI TDS rate
(withholding tax rate)
Sale of Immovable Assets including Agricultural Land located within specified area. Period of holding more than 2 years – Long Term Capital Gain.
20% Tax after indexation on Capital Gain.  (U/s. 112)
20% on the capital gains
(U/s. 195)
Period of holding less than 2 years – Short Term Capital Gain.
At slab rates.
(U/s. 112)
30% + surcharge (if applicable)
(U/s. 195)

Q.  What are the most suitable investment options for an NRI in India?

  • Fixed Income Investments:
    • Fixed deposits of reputed companies in India through NRO bank A/c
    • NRE Fixed Deposits
  • FCNR term deposits
  • Equity Investments:
    • Investment in equity shares
    • Investment in Equity Mutual Funds
    • Investment in Portfolio Management Services (PMS)

Q.  Why should an NRI invest in $ terms to maintain global diversification in the investment portfolio?

  1. Participate in the best global corporations
  2. Geographical Portfolio Diversification
  3. U.S. Dollar denominated exposure
  4. Attractive Valuations
  5. Corpus for foreign currency expenditures
  6. Rich dividend yield

U.S. Dollar denominated exposure

  • Depreciation of the Indian Rupee in the last few years.
July 2014 July 2015 July 2016 July 2017 July 2018 July 2019 July 2020
60.555 63.988 66.655 64.200 68.460 68.875 74.918

Indian Rupee has depreciated against the US$ at the rate of 3.61% p.a. on a compounded basis in last six years.

Q.  How can an NRI invest in $ terms to maintain global diversification in the investment portfolio?

Q.  What are the differences between a Mutual Fund and a Portfolio Management Service (PMS)?

Equity based Mutual Fund Equity based PMS
1. No requirement of any Account. 1 Operations by a Portfolio Manager through PIS Account.
2. Taxation on each sale
Short term gain : 15%Long term gain : 10%On dividend income: Tax free in the hands of Mutual Fund.
2 Taxation:
On sale
Short term gain : 15%Long term gain : 10%On dividend income: 20%.
3 Restrictions:
Restriction on percentage of allocation by the fund towards a particular script or sector.
3 Restrictions:
(On repatriable basis)
Sectoral and company specific caps for NRI.
4 Minimum Investment:
Rs. 500
4 Minimum Investment:
Rs. 50 lakhs
5 Inflow or outflow by other investors has an impact on the investment. 5 There is no impact of transactions of other investors on our investment.

Q.  What is a Double Taxation Avoidance Agreement (DTAA) and how does it impact an NRI?

  • Double Taxation Avoidance Agreement (DTAA) is agreements entered into between countries, between India and another foreign state.
  • The basic objective is to avoid, taxation of income in both the countries (i.e. Double taxation of same income) and to promote and foster economic trade and investment between the two countries.
  • ALL BENEFITS of DTAA are available to respective Tax residents. To become a tax resident of UAE, stay in UAE should exceed 183 days in the relevant calendar year.

Q.  What are the tax concessions available in DTAA for an NRI from UAE/Gulf Countries?
Major Tax concession in DTAA with U.A.E., Oman, Qatar & Kuwait

  • Capital Gains on sale of Mutual Funds (Debt based or Equity based being short term or long term) and bonds cannot be subjected to tax in India for tax residents of UAE.
    • ITO (IT) 2(1) Mumbai vs. Shri Satish Beharilal Raheja ITA NO.4627/Mum/2009
    • The Dy. Commissioner of Income-tax (International Taxation) Kochi vs. Sri.K.E.Faizal ITA No.423/Coch/2018
Rates under Indian Income Tax Type of income in India
Dividend Interest
20% + Surcharge (If applicable) Slab rates

Concessional Rates in DTAA

Sr. No. Country of tax residence Type of income in India
Dividend Interest
1  UAE 10% 12.50%
2  Oman 12.50% 10%
3  Saudi Arabia 5% 10%
4  Kuwait 10% 10%
5  Qatar 10% 10%

Q.  Can an NRI from UAE take Insurance policy from India and is it worth taking?
Following options of insurance are available in India for an NRI:

  • ULIP – An Insurance plan combining the features of investment (as per the choice of policyholder) and insurance risk cover over the life of the insured.
  • Guaranteed Return Income Plans – A lucrative Insurance plan for retirement planning, assuring tax free return of premium payments at an attractive rate of return in future, in parts or full along risk cover over the life of the insured.
  • Term Plans – An affordable insurance plan, providing financial protection to the nominee in case of death of the person insured.

Please feel free to discuss your concerns and contact us at:
Mobile: +91 70435 93388 / 70430 88859
Email: nris2@ashutoshfinserv.com
Please forward this message to your friends, relatives and contacts who could be interested.
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We invite NRIs to become our REFERRAL PARTNERS for promoting NRI Services globally with attractive terms.

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For Non-Resident Indians Based In U.A.E. & Other Gulf Countries

We had recently organized a webinar exclusively for Non-Resident Indians of U.A.E. & Other Gulf Countries on the topic
‘BURNING QUESTIONS OF U.A.E. & OTHER GULF COUNTRIES NRIs’.
We are sharing with you the questions asked in the session along with relevant answers which you can share with your friends, relatives and contacts in U.A.E. & Other Gulf Countries. Link of  Question and Answer
We are also sharing our other webinar links that we had recently conducted for Non-Resident Indians on the topics:
IMPORTANT REGULATIONS & INVESTMENT RATIONALE FOR NRI IN PRESENT TIMES:
https://youtu.be/hQXZll75HK4
OVERVIEW OF NRI TAXATION WITH RECENT AMENDMENTS IN FINANCE ACT. 2020:
https://youtu.be/0JJJPkLlO6w
We are a one stop solution for NRI for all financial & taxation needs providing the below mentioned services:

  1. Investment options in India and aboard for NRI.
     a. Mutual Funds in India.
     b. Portfolio Management Services (PMS).
     c. US Equity.
    d. Fixed deposits of reputed companies.
  2. All types of Insurance offerings in India for NRIs.
  3. Complete Indian income tax compliance.
  4. Preparing consolidated report for Indian income and assets for Foreign tax compliance.
  5. Advising to NRI as per the rules and regulations of FEMA & RBI.

Please feel free to discuss your concerns and contact us at:
Mobile: +91 70435 93388 / 70430 88859
Email: nris2@ashutoshfinserv.com
Follow us using Ashutoshfinserv at FACEBOOKINSTAGRAMYOUTUBETWITTER & LINKEDIN to receive all the latest information from finance world.
We invite NRIs to become our REFERRAL PARTNERS for promoting NRI Services globally with attractive terms.

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Tax Collected At Source (TCS) Provisions Are Not Applicable To Non-Resident Indians (NRIs)

  • There has been a lot of discussion in media over the Tax Collected at Source (TCS) imposed by the government from 1/10/2020.
  • Such TCS is NOT APPLICABLE for any Non-Residents remitting funds to and from India through their NRE bank account or through NRO bank account under the remittance of assets scheme.
  • However, it is applicable to residents sending funds abroad to their relatives or for making any investment abroad and such other fund transfers under the Liberalised Remittance Scheme (LRS) by resident Indians.
  • The TCS is not an additional tax that is imposed as the credit of it can be claimed against the final income tax liability. It is one more means of collecting Income Tax in advance by the taxpayer.
  • The purpose of TCS for the Income Tax Dept. is to monitor the transactions which are undertaken by the taxpayers.

For further details, contact us:
Ashutosh NRI Services
Mobile: +91 70435 93388 / 70430 88859
Email: nris2@ashutoshfinserv.com / nris1@ashutoshfinserv.com
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Special Tax Benefit For Non-Resident Indians (NRI)

▪️ Any Long-term capital gain on sale of shares of Indian Companies, listed and unlisted or any government securities will be exempt if the sale consideration is reinvested within 6 months into shares of Indian Companies , Deposits with Indian companies (including Indian Banks) or Government Securities.
▪️ The above relief is available under section 115F of the Income Tax Act (Chapter XII-A).
▪️ The sale consideration can be invested in deposits of top class Indian companies offering an interest above 7% p.a.
▪️ The investment made to claim the deduction has to be held for 3 years.
▪️ If sale consideration is partially invested, proportionate deduction is allowable.
▪️ This provision opens an opportunity for lucrative tax planning for NRI and an attractive investment opportunity simultaneously.
For further details, contact us:
Ashutosh NRI Services
Mobile: +91 70435 93388 / 70430 88859
Email: nris2@ashutoshfinserv.com / nris1@ashutoshfinserv.com
Follow us using AshutoshFinserv on:
FACEBOOK, INSTAGRAM, YOUTUBE, TWITTER & LINKEDIN.
We invite NRIs to become our REFERRAL PARTNERS for promoting NRI Services globally with attractive terms.

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Referral Partner for NRI Services

  • We are a one stop destination for Non-Resident Indians providing holistic services relating to Investments, Taxation & Estate planning, Legal aspects and compliances relating to foreign taxation.
  • We are inviting applications for persons to become our Referral Partners in promoting NRI services globally with very attractive terms.

Following are the requirements for someone to become a Referral Partner:

  1. The person should be of Indian origin, located outside India.
  2. The person has a basic understanding and background in the field of finance or taxation or accounting or legal services.
  3. The person can engage part time/fulltime in the promotion of these services in a dedicated manner.
  4. The person has relationships to roll out financial products and services to a larger section of clients beyond his immediate family.
  5. The person has a good working knowledge about computer operations and mobile applications.

To become a Referral Partner, contact us at the earliest.
Ashutosh NRI Services
Mobile: +91 70435 93388
Email: nris2@ashutoshfinserv.com
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Tax Residents Of Australia

PREPARATION OF DATA FOR AUSTRALIAN TAX RETURN IN RESPECT OF INDIAN FINANCIAL TRANSACTIONS FOR TAX YEAR 19-20
PASS THIS MESSAGE TO ALL YOUR FRIENDS AND RELATIVES IN AUSTRALIA
Any person who is an Australia tax resident (A person is a tax resident of Australia if he stays in Australia for more than 183 days in the Australian tax year from 1st July to 30th June OR on fulfillment of certain other conditions) is required to offer his global income for tax in Australia.
We can prepare consolidated data for Australian tax residents regarding incomes, investments & other assets in India appropriately converted into Australian Dollars (AUD) for the tax year 2019-20. This data can be used to seamlessly comply with your Tax return requirements in respect of Indian incomes.

Kindly contact us if you require our services.
Thanks & regards,
Ashutosh NRI Services
A division of Ashutosh Financial Services Pvt. Ltd.
Contact: +91 70435 93388 / nris2@ashutoshfinserv.com
www.ashutoshfinserv.com
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Tax Residents Of United Kingdom (U.K.)

FOR TAX RESIDENTS OF UNITED KINGDOM (U.K.)
PREPARATION OF DATA FOR U.K. TAX RETURN IN RESPECT OF INDIAN FINANCIAL TRANSACTIONS FOR TAX YEAR 19-20
PASS THIS MESSAGE TO ALL YOUR FRIENDS AND RELATIVES IN U.K.
Any person who is a U.K. tax resident (his stay in U.K. exceeds 183 days in the U.K. tax year (6th April to 5th April) OR if his only home was in the U.K. where he has spent at least 30 days there in the tax year along with at least 91 days in U.K. is required to offer his global income for tax in U.K.
We can prepare consolidated data for U.K. tax residents regarding incomes, investments & other assets in India appropriately converted into Pound Sterling (£) for the tax year 2019-20. This data can be used to seamlessly comply with your Tax return requirements in respect of Indian incomes.

Kindly contact us if you require our services.
Thanks & regards,

Ashutosh NRI Services
A division of Ashutosh Financial Services Pvt. Ltd.
Contact: +91 70435 93388 / nris2@ashutoshfinserv.com
www.ashutoshfinserv.com

  • Investments •Insurance •Income Tax & Estate Planning •NRI Services

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For Tax Residents Of Tanzania, Kenya, Uganda, South Africa, Sudan & Ethiopia

FOR TAX RESIDENTS OF TANZANIA, KENYA, UGANDA, SOUTH AFRICA, SUDAN & ETHIOPIA:
NO CAPITAL GAINS TAX ON SALE OF MUTUAL FUNDS AND BONDS/DEBENTURES IN INDIA UNDER DTAA.
PASS THIS MESSAGE TO ALL YOUR FRIENDS AND RELATIVES IN THE ABOVE COUNTRIES.
Under Article 13 of the DTAA (Double Taxation Avoidance Agreement) with the respective countries, capital gains on sale of Mutual Funds (equity oriented or non equity oriented), either short term or long term and also capital gains on sale of all types of bonds/debentures shall be completely tax free in India for persons who are Tax Residents of any of the above country.
The above interpretation of the DTAA has been confirmed by the following judicial decisions:
1. ITO (IT) 2(1) Mumbai vs. Shri Satish Beharilal Raheja ITA NO.4627/Mum/2009
2. The Dy. Commissioner of Income-tax (International Taxation) Kochi vs. Sri.K.E.Faizal ITA No.423/Coch/2018
It has come to our notice that several NRI based in Africa are unaware of this concession.
Kindly contact us in case of any clarification.
Ashutosh NRI services
A division of Ashutosh Financial Services Pvt. Ltd.
Contact us: +91 70435 93388 / nris2@ashutoshfinserv.com
www.ashutoshfinserv.com
Disclaimer: The above facts are based on our interpretation of law. The same should not be relied or acted upon without seeking specific professional advice.
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For Canada Tax Residents

FOR CANADA TAX RESIDENTS:
CONCESSIONAL RATE OF TAX IN INDIA OF 15% ON INTEREST INCOMES UNDER DTAA.
Under Article 11 of the India-Canada DTAA (Double Taxation Avoidance Agreement), there is a concessional rate of 15% on interest incomes (including NRO bank account interest) in India for tax residents of Canada. The same shall also be the rate of T.D.S. (withholding tax) in India.
A person is a tax resident of Canada if he stays in Canada for more than 183 days in the calendar year (1st January to 31st December) OR on fulfillment of certain other conditions as per Canadian Law.
The above rates are inclusive of surcharges and cess which is affirmed by the following judicial decisions:
1. Deputy Director of Income-tax (IT)-1(1), Kolkata v. BOC Group Ltd.
2. R.A.K. Ceramics, UAE v. Deputy Commissioner of Income Tax, International Taxation (2), Hyderabad
It has come to our notice that several NRIs based in Canada are unaware of this concession.
Kindly contact us in case of any clarification.
Ashutosh NRI Services
(A division of Ashutosh Financial Services Pvt. Ltd.)
Contact us: +91 70435 93388 / nris2@ashutoshfinserv.com
www.ashutoshfinserv.com
Disclaimer: The above facts are based on our interpretation of law. The same should not be relied or acted upon without seeking specific professional advice.
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For U.K. Tax Residents

CONCESSIONAL RATE OF TAX IN INDIA OF 10% ON DIVIDEND INCOMES AND 15% ON INTEREST INCOMES UNDER DTAA.
Under Article 11 and Article 12 of the India-UK DTAA (Double Taxation Avoidance Agreement), Notification No. 10/2014 [F.No.505/3/1986-FTD-I], dated 10-2-2014, w.r.e.f. 27-12-2013, there is a concessional rate of 10% on dividend income and 15% on interest income (including NRO bank account interest) respectively, in India for tax residents of U.K. The same shall also be the rate of T.D.S. (withholding tax) in India.
A person is a U.K. tax resident if he stays in U.K. for more than 183 days in the U.K. tax year (6th April to 5th April) OR if his only home was in the U.K. where he has spent at least 30 days there in the tax year along with at least 91 days in U.K.
The above rates are inclusive of surcharges and cess which is affirmed by the following judicial decisions:

  1. Deputy Director of Income-tax (IT)-1(1), Kolkata v. BOC Group Ltd.
  2. R.A.K. Ceramics, UAE v. Deputy Commissioner of Income Tax, International Taxation (2), Hyderabad

Kindly contact us in case of any clarification.
Ashutosh NRI services (A division of Ashutosh Financial Services Pvt. Ltd.)
Contact us: +91 70435 93388 / nris2@ashutoshfinserv.com
www.ashutoshfinserv.com
Disclaimer: The above facts are based on our interpretation of law. The same should not be relied or acted upon without seeking specific professional advice.
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For U.S.A. Tax Residents

FOR U.S.A. TAX RESIDENTS
CONCESSIONAL RATE OF TAX IN INDIA OF 15% ON INTEREST INCOMES UNDER DTAA.
PASS THIS MESSAGE TO ALL YOUR FRIENDS AND RELATIVES IN U.S.A.
Under Article 11 of the India-U.S.A. DTAA (Double Taxation Avoidance Agreement), there is a concessional rate of 15% on interest incomes (including NRO bank account interest) in India for tax residents of U.S.A. The same shall also be the rate of T.D.S. (withholding tax) in India.
A person is a tax resident of U.S.A. if he stays in U.S.A. for more than 183 days in the calendar year (1st January to 31st December) OR on fulfilment of certain other conditions such as being a U.S.A. citizen or U.S.A. green card holder.
The above rates are inclusive of surcharges and cess which is affirmed by the following judicial decisions:

  1. Deputy Director of Income-tax (IT)-1(1), Kolkata v. BOC Group Ltd.
  2. R.A.K. Ceramics, UAE v. Deputy Commissioner of Income Tax, International Taxation (2), Hyderabad

It has come to our notice that several NRIs based in U.S.A. are unaware of this concession.
Kindly contact us in case of any clarification.
Ashutosh NRI services (A division of Ashutosh Financial Services Pvt. Ltd.)
Contact us: +91 70435 93388 / nris2@ashutoshfinserv.com
www.ashutoshfinserv.com
Disclaimer: The above facts are based on our interpretation of law. The same should not be relied or acted upon without seeking specific professional advice.
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For Australian Tax Residents

CONCESSIONAL RATE OF TAX IN INDIA OF 15% ON DIVIDEND INCOMES AS WELL AS INTEREST INCOMES UNDER DTAA.
Under Article 10 and Article 11 of the India-Australia DTAA (Double Taxation Avoidance Agreement), there is a concessional rate of 15% on dividend income as well as interest income (including NRO bank account interest) respectively, in India for tax residents of Australia. The same shall also be the rate of T.D.S. (withholding tax) in India.
A person is a tax resident of Australia if he stays in Australia for more than 183 days in the Australian tax year (1st July to 30th June) OR on fulfillment of certain other conditions.
The above rates are inclusive of surcharges and cess which is affirmed by the following judicial decisions:

  1. Deputy Director of Income-tax (IT)-1(1), Kolkata v. BOC Group Ltd.
  2. R.A.K. Ceramics, UAE v. Deputy Commissioner of Income Tax, International Taxation (2), Hyderabad

Kindly contact us in case of any clarification required.

Ashutosh NRI Services (A division of Ashutosh Financial Services Pvt. Ltd.)
Contact us: +91 70435 93388 / nris2@ashutoshfinserv.com
www.ashutoshfinserv.com
Disclaimer: The above facts are based on our interpretation of law. The same should not be relied or acted upon without seeking specific professional advice.
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For U.A.E. Tax Residents

  • NO CAPITAL GAINS TAX ON SALE OF MUTUAL FUNDS IN INDIA AND OTHER CONCESSIONS UNDER DTAA.

Under Article 13 of the India-UAE DTAA (Double Taxation Avoidance Agreement), capital gains on sale of Mutual Funds (equity oriented or non equity oriented), either short term or long term and also capital gains on sale of bonds shall be completely tax free in India for persons who are UAE Tax Residents (Persons who have stayed in UAE for more than 183 days in the Calendar Year).
The above interpretation of the DTAA has been confirmed by the following judicial decisions:

  1. ITO (IT) 2(1) Mumbai vs. Shri Satish Beharilal Raheja ITA NO.4627/Mum/2009
  2. The Dy. Commissioner of Income-tax (International Taxation) Kochi vs. Sri.K.E.Faizal ITA No.423/Coch/2018
  • CONCESSIONAL RATE OF TAX IN INDIA OF 10% ON DIVIDEND INCOMES AND 12.50% ON INTEREST INCOMES UNDER DTAA.

Under Article 10 and Article 11 of the India-U.A.E. DTAA (Double Taxation Avoidance Agreement), there is a concessional rate of 10% on dividend income and 12.50% on interest income (including NRO bank account interest) respectively in India for tax residents of U.A.E. (Persons who have stayed in U.A.E. for more than 183 days in the Calendar Year). The same shall also be the rate of T.D.S. (withholding tax) in India.
The above rates are inclusive of all surcharges and cess which is affirmed by the following judicial decisions:

  1. Deputy Director of Income-tax (IT)-1(1), Kolkata v. BOC Group Ltd.
  2. A.K. Ceramics, UAE v. Deputy Commissioner of Income Tax, International Taxation(2), Hyderabad

Kindly contact us in case of any clarification.
Ashutosh NRI services (A division of Ashutosh Financial Services Pvt. Ltd.)
Contact us: +91 70435 93388 / nris2@ashutoshfinserv.com
www.ashutoshfinserv.com

Disclaimer: The above facts are based on our interpretation of law. The same should not be relied or acted upon without seeking specific professional advice.
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Overview Of NRI Taxation With Recent Amendments

 View & Download Our Presentation PDF

Webinar for NRI on topic “OVERVIEW OF NRI TAXATION WITH RECENT AMENDMENTS.” conducted on 18th May, 2020 – Monday.
The webinar had addressed for NRI and their relatives covering the Complete overview about NRI Taxation and special focus on amendments proposed for NRI in the Finance Act 2020.
The presentation was addressed by: Mr. Daxesh Kothari – Tax & Financial Consultant and MD & CEO of Ashutosh Financial Services Pvt. Ltd.
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Webinar For NRI "Important Regulations & Investment Rationale For NRI In Present Times”

 View & Download Our Presentation PDF

Webinar for NRI on topic “IMPORTANT REGULATIONS & INVESTMENT RATIONALE FOR NRI IN PRESENT TIMES”,
conducted on 16th May, 2020 – Saturday.
The webinar had addressed for NRI and their relatives covering the Basics about FEMA & RBI regulations in day to day use for NRI & understanding why a NRI should invest in India, especially in the present times.
The presentation was addressed by: Mr. Daxesh Kothari – Tax & Financial Consultant and MD & CEO of Ashutosh Financial Services Pvt. Ltd.
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NRI Services

Capital Protection Strategy For Non-Resident Indian Investments

⚖️ GET THE BEST OF BOTH THE WORLDS – DEBT & EQUITY INVESTMENTS ⚖️
We have came up with a simple but unique way of investments for our Non-Resident Indian clients. A strategy which can get the best outcomes from investment in India by investing in NRE Bank Fixed Deposits coupled with investment in Equity oriented Mutual Funds with no depreciation of capital invested.
Features of the Strategy:
1. The purpose is to invest strategically by protecting the investment amount from depreciation of invested capital.
2. To take the exposure of Equity market into investment portfolio with risk mitigation technique.
3. Under the technique, invest 77% of the corpus in NRE Fixed Deposit of a reputed bank of India and invest 23% in Equity oriented Mutual Funds with diversified portfolio.
4. Over the period of investment tenure investor can gain risk free return.
Please review the detailed working from the attached PPT.
CAPITAL PROTECTION STRATEGY FOR NRI INVESTMENT PLAN
For details contact,
Ashutosh NRI Services
A division of Ashutosh Financial Services Pvt. Ltd.
Investments •Insurance •Income Tax & Estate Planning •NRI Services
Contact us at:
Mobile: +91 70435 93388
Email: nris2@ashutoshfinserv.com
www.ashutoshfinserv.com
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NRI Services

Changes in Regulations for Non-Residents Under Indian Income Tax Act

As we all know that the Finance Bill 2020 has been passed by the Lok Sabha on 23rd Mar, 2020, applicable for the Financial Year 2020-21 with various key amendments impacting the taxation for Non Residents in India.
Please find herewith “Changes in Income Tax Act for Non Residents”. Kindly view the PDF document shared herewith to have a complete understanding of the amendments through a power point presentation prepared by us.
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NRI Services

Ashutosh NRI Services

We identify our NRI division as a one stop destination for NRI related Financial, Investment and Taxation services. NRIs comprise a substantial portion of our current client base. Our continuous endeavor is to provide quality services to our valuable clients. We offer a whole spectrum of NRI related services to our clients spread across the globe. We extend our services from handling NRI investment related queries, to providing excellent solutions to NRIs regarding setting up business in India, to NRI Banking Solutions, to assisting returning and emigrating Indians. Our NRI Consultancy Services, which involves all the above aspects and solves many more issues interfacing with Indian and Foreign Taxation Laws. We have credible experience of providing multitude of services to a diverse clientele profiles. We always strive to provide value added services to our clients through strong customer relationship management.
We Serve…..

  • Emigrating Indians/New NRIs
  • NRIs who intend to remit funds from India to Abroad or vice versa
  • NRIs who have/intend to have investments in India
  • NRIs who inherit assets in India
  • NRIs who have/intend to set up a business in India
  • Returning NRI
  • NRIs who are subject to report under Foreign Taxation Laws

Emigrating Indians / New NRIs:

India has one of the world’s most diverse and complex migration history. In the present globalized world, migration of people from one country to another, for employment has become a common phenomenon. Emigration to the different countries has been most manifest in the growth of trade and financial flows of India. An emigrating Indians/New NRIs are crucial to the Indian economic development. We help them in the following matters:

  • Facilitate repatriation of sale proceeds and income of assets held in India
  • Determination of residential status in India
  • Plan for NRIs tax liability in India
  • Appplication for obtaining PAN number and filing of Income Tax return in India
  • Opening up various bank accounts and compliances thereof
  • Opening a Portfolio Investment Scheme account in respect of Stock Market transactions
  • Monitor, record and report about his/her investments in India
  • Facilitating execution of Power of Attorney

NRIs who Intend to remit funds from India to Abroad or vice versa:-

The Indian foreign exchange market has operated in a liberalized environment for more than a decade. Nobody can doubt the contribution of foreign exchange remittance in the economic development of India. We facilitate our clients to conduct hassle free remittance transactions as follows:

  • Opening of various bank accounts in India namely ‘Rupee Accounts’ like NRE A/c, NRO A/c and ‘Forex Accounts’ like FCNR A/c and RFC A/c
  • Issuance of CA Certificates like 15CA and 15CB
  • Monitoring of your bank accounts with regards to various compliances and also effective tax planning for credited amounts
  • Repatriation of sale proceeds of residential and immovable property in India, current income repatriation like interest, dividend, pension, rent etc.

NRIs who have/intend to have investments in India:

Investing in India, when living abroad, has always been the safe route to ensure good financial gains and securing future-return plans to the country. We can provide you the needed advisory and assistance in taking the best decision for your real estate properties and investments which will definitely form a larger part of the portfolio of assets. We assist our clients to invest in a very efficient and effective way as follows:

  • Suggesting balanced allocation between Fixed Income investments, Equity based investments and Real Estate properties
  • Recommending best investment option in light of Indian laws
  • Advising allocation of investments in the most convenient routes such as Mutual Funds, Govt. Risk-free bonds, Securities, Fixed Deposits and Quality Real Estate projects
  • Suggesting various reinvestment options to minimize Capital gain tax
  • Monitor, record and periodically report on such investments
  • Facilitate repatriation of income from investments and rent
  • Facilitate liquidation/lease of property
  • Facilitate repatriation of sale proceeds
  • Complete banking and other regulatory formalities

NRIs who inherit assets in India:

NRIs inherit property from their parents or someone else, have manifold implication of legal issues. At the same time that can be avoided by well thought plan in regard of the property. We can manage these issues well by considering every aspect of the matter as follows:

  • Drafting and registration of a WILL
  • Representing before tax authorities on behalf of the assesse if required
  • Handling of issues relating to inheritance, a succession certificate, mutation of records etc.
  • Facilitating repatriate the sale proceeds of the property or manage the same in most tax efficient manner.

NRIs who have/intend to set up a business in India:

The Indian government has played a responsible role in addressing the financial investment needs of its cash-rich, non-resident diaspora. Adopting a multi-level approach, the government has tried to ensure holistic investment opportunities for the wide-spectrum of foreign investor profiles. Recently India has become the land of opportunity for many NRIs, to invest under “Make in India” and other investor friendlyschemes. Setting up business in India by NRIs attract various legal compliances. We enable him/her to do so by providing the following services:

  • Arrange finance for the project by preparing a detailed project report and liaison with banks/ financial institutions and joint venture partners
  • Tax planning via different forms of entities like Trusts, Companies, Firms, etc.
  • Develop an entry strategy and a financial model
  • Evaluate potential partners by carry out financial due diligence reviews
  • Advising on appropriate compliance for complete set of regulatory approvals
  • Provide insight about various Foreign Direct Investment Schemes and benefits under the same
  • Facilitate liquidation/lease of property
  • Determine the form of entity and process related to incorporation of the same

Returning NRIs:

Returning to India for good is a big decision and involves various aspects to be considered in order to re-establish settlement in India without omitting any legal compliance. When relocating to India, the following aspects must be taken care of:

  • Taxability of Income earned in and outside of India in respect to the Indian Income Tax Act, 1961
  • Interpretation of DTAA with a view to reduce tax liability
  • Reorganize your asset portfolio in India/outside India with professional assistance to ensure minimum tax liability
  • Planning the date and month of return to India to reduce tax liability
  • Residential status under different laws
  • Compliances with respect to the ‘Income-Tax Act, 1961’ and filing of Indian Income Tax Return
  • Re-designation of all Indian bank accounts as Resident accounts and taxability thereof
  • Opening and complying with respect to ‘Resident foreign currency’ (RFC) account

 

NRIs who are subject to report under Foreign Taxation Laws:

NRIs are subject to the tax laws of different countries or the international aspects of an individual country’s tax laws as the case may be. Governments usually limit the scope of taxation of income in some manner territorially or provide for offsets of taxation relating to extraterritorial income. Each country has separate laws in respect to levy tax on the taxpayers. Because of varying nature of laws in different countries NRIs have to disclose certain assets and investment made overseas. We assist in the following manner:-

  • Provide understanding of various Foreign Taxation Laws
  • FATCA and CRS reporting requirement and processes related to it
  • FBAR reporting and implications of it
  • Declaration under PFIC reporting
  • Helping to opt under various Voluntary Disclosure Schemes
  • Planning of various investments across the globe in a tax effective manner

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