Ashutosh Financial Services has long held the view that sound financial decisions start with sound financial understanding, and its recurring sessions with the NRI community are a direct expression of that belief. Rather than simply explaining products, these gatherings are designed to walk participants through the rules, structures, and opportunities that actually govern their money in India, so that whatever choices they make afterward are informed ones.
This philosophy shaped the recent session titled “Changing Landscape of Taxation, Regulations and Investments in India,” held in Birmingham, UK, on 19 June 2024 for an audience of Non-Resident Indians. The session was led by Daxesh Kothari and CA Rajit Kothari, and it addressed a group whose relationship with India’s financial system is often shaped by outdated assumptions, since rules around banking, taxation, and investing for NRIs have shifted considerably in recent years.
The session opened with the fundamentals of NRI banking. Once an individual becomes a non-resident, they are required under FEMA (the Foreign Exchange Management Act) to convert or close any resident savings account and operate instead through NRO, NRE, FCNR, or RFC accounts, each with a different purpose. An NRO account holds non-repatriable rupee funds and is taxable, an NRE account holds repatriable rupee funds and is tax-exempt, and an FCNR account allows deposits to be held in foreign currency with tax-free interest. Understanding which account suits a particular need, whether it’s managing rental income, parking foreign earnings, or preparing to eventually move funds abroad, was presented as a foundational step for any NRI managing Indian finances.
From there, the discussion moved to repatriation, a recurring concern for NRIs wanting to move money out of India. Current rules allow up to USD 1 million per person per year to be transferred out of NRO accounts, provided applicable taxes have been settled and the funds aren’t from borrowed sources. Income such as rent or business earnings, by contrast, carries no such cap once the correct taxes have been paid. The session also touched on compliance essentials like PAN and Aadhaar, clarifying that while a PAN card is required for most financial transactions in India, NRIs and OCIs are not eligible for Aadhaar at all, which removes an obligation many attendees may have assumed still applied to them.
A significant portion of the session was devoted to India’s shift toward a fully digital, faceless tax administration, where filings, assessments, and appeals no longer require any in-person interaction with tax authorities. This was framed as part of a broader move toward transparency, alongside an explanation of the Double Taxation Avoidance Agreement, or DTAA, which India maintains with over 90 countries, including the UK, to prevent the same income from being taxed twice.
The presentation then walked through investment avenues available to NRIs, each with its own tax and repatriation treatment. Fixed deposits, real estate, direct equity, mutual funds, and Alternative Investment Funds, or AIFs, were each examined for how gains are taxed and whether proceeds can be freely moved abroad. Equity mutual funds and listed shares, for instance, attract different rates depending on the holding period, while a case study on Tata Technologies illustrated how early investment in unlisted shares, later followed by a public listing, produced substantial multi-year growth, a reminder that the potential upside comes with corresponding illiquidity and risk. Retirement planning also featured prominently, including the option for UK-based NRIs to transfer pension savings to India through the Qualifying Recognised Overseas Pension Scheme, or QROPS, offering a tax-efficient route for those planning retirement income across two countries.
Practical, real-world perspective ran throughout the session as well. Real estate was discussed candidly as an asset class that, despite its emotional appeal, often creates liquidity and management challenges for NRIs who no longer live in India, making financial assets a more flexible option for many. Attendees were also reminded that nearly every transaction, from banking to investing to filing taxes, can now be completed digitally from abroad, removing the need for physical presence in India. A dedicated panel discussion further explored GIFT City, India’s first International Financial Services Centre, outlining how units there operate outside standard FEMA restrictions while remaining subject to India’s broader legal and tax framework, opening a distinct set of opportunities for NRI investors.
Sessions like this one reflect a simple idea: that financial confidence comes from understanding the system, not just reacting to it. As India’s regulatory and investment landscape continues to change, staying informed remains one of the most valuable things an NRI can do for their long-term financial wellbeing. Ashutosh Financial Services intends to keep bringing these conversations directly to communities like the one in Birmingham, continuing its effort to make financial literacy accessible wherever its audience happens to live.
