NRI Related Services

We have creditable experience of providing multitude of services to a diverse client profile. Non resident Indians comprise a substantial portion of our client base.

We provide a range of services to our NRI clients. Our client profile includes

  • Non resident Indians who have/ intend to have investments in India
  • Non resident Indians who inherit assets in India
  • Non resident Indians/ Non-residents who have / intend to set up a business in India
  • Returning NRI
  • Emigrating Indian/ New NRI
  • NRI Intending to remit funds from India to Abroad.

Bur foremost, it is very important to understand that who is considered NON-RESIDENT in India ?

WHO IS NRI?

An Indian abroad is popularly known as Non-Resident Indian (NRI). The NRI status is legally defined under the Foreign Exchange Management Act, 1999 and the Income Tax Act, 1961 for applicability of respective laws.

Non resident under FEMA 1999 :

Person resident outside India means a person who is not resident in India.

Person resident in India means:
(i) a person residing in India for more than one hundred and eighty-two days during the course of the preceding financial year but does not include—
(A) a person who has gone out of India or who stays outside India, in either case—
(a)For or on taking up employment outside India, or
(b)For carrying on outside India a business or vocation outside India, or
(c)for any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period;
(B) a person who has come to or stays in India, in either case, otherwise than—
(a)For or on taking up employment in India, or
(b)For carrying on in India a business or vocation in India, or
(c) For any other purpose, in such circumstances as would indicate his intention to stay in India for an uncertain period;
(ii) Any person or body corporate registered or incorporated in India,
(iii) An office, branch or agency in India owned or controlled by a person resident outside India,
(iv) An office, branch or agency outside India owned or controlled by a person resident in India;
Non resident under income-tax act, 1961 / wealth tax

The term non-resident is negatively defined under section 6 of the Income-tax Act. An individual who is not a resident under the Income-tax Act is a non-resident (generally, termed NRI). Thus, one should know the definition of a resident and if he is not a resident then he is a non-resident.

The status of a person as a resident or non-resident depends on his period of stay in India. The period of stay is counted in number of days for each financial year beginning from 1st April to 31st March (known as previous year under the Income-tax Act). The definition is explained in simple terms as under.

If an individual who satisfies understated both the conditions of section 6 of the Income-tax Act, then he becomes a non-resident.
Condition Status
1 He is not in India for 182 days or more during the relevant previous year. » If yes, then he is a non-resident. (so check the next condition.)
2 He is not in India for 60 days or more during the previous year and he is not in India for 365 days or more during the 4 years prior to the previous year. » If yes, then he is a non-resident.
If you are not satisfying any of the above conditions to become non-resident, check whether following assists you to become a non-resident. In the case of an individual on visit to India or a member of the crew of an Indian ship or a person leaving India for employment outside India, the requirement of stay in India of 60 days in condition 2 above is extended to 182 days
RESIDENT BUT NOT ORDINARILY RESIDENT (RNOR)
A NRI who has returned to India for good is covered under the provisions of section 6(6) of the Income-tax Act. He is given a special status of RESIDENT BUT NOT ORDINARILY RESIDENT (RNOR) if he satisfies one of the following conditions
(The definition of RNOR was amended in the Indian Finance Act, 2003. These are the revised conditions applicable from Financial year April, 2003 to March 2004)
Condition Status
1 He is non-resident, as per the above provisions, for at least 9 out of 10 previous years prior to the previous year under consideration. » If yes, he is RNOR
2 His stay in India during the 7 previous year prior to the previous year under consideration should be 729 days or less » If yes, he is RNOR

Note:

An individual who is non-resident for 9 consecutive years, shall remain RNOR for 2 subsequent years and as such his foreign income is not taxable in India while his status is that of RNOR. The status of RNOR renders certain income of such individual non-taxable as explained in Tax liability of NRIs

A person who is returning to India after 9 years of stay outside India (and who was non-resident for each of the 9 years under the Income Tax Act, 1961), shall remain RNOR for a period of two years only

Where can we help?

  • Determination of your residential status in India
  • Interpretation of DTAA with a view to reduce tax liability in India
  • Handling of issues relating to inheritance, will, etc.
  • Compliances with respect to the income-tax Act, 1961, Wealth-tax Act, etc.
  • Application for Permanent Account Number (PAN)
  • Filing of India tax return
  • Advising suitable tax saving investments
  • Representation before tax authorities, in case required
  • Opening if various bank accounts and compliances thereon
  • Various compliances in regard to repatriation of funds/investments/property, etc.

PERSON OF INDIAN ORIGIN (PIO)

A Person of Indian Origin (PIO) is literally, simply a person of Indian origin who is not a citizen of India.

PIO for the purpose of acquisition and transfer of immovable property in India : PIO means a citizen of any country other than Bangladesh or Pakistan or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan if –

  • He at any time held Indian passport or
  • He or either of his parents or any of his grandparents was a citizen of India by virtue of the Constitution of India of the Citizenship Act, 1955

PIO for the purpose of investment of shares in India / opening non-resident account in India/ remittanceeofassets
PIO means a citizen of any country other than Bangladesh or Pakistan, if-

  • He at any time held Indian passport or
  • He or either of his parents or any of his grandparents was a citizen of India by virtue of the Constitution of India of the Citizenship Act, 1955 or
  • The person is a spouse of an Indian citizen or a person referred to in above sub-clauses.

PIO CARD

Eligibility

Any person other than a citizen of Bangladesh or Pakistan –

  • who at any time held an Indian passport;
  • He/she or either of his/her parents or grand parents or great grand parents was born in and permanently resident in India as defined in the Government of India Act ,1935 and other territories that become part of India thereafter provided neither was at any time a citizen of any of the country as may be specified by Central Government from time to time; or
  • 1.Who is a spouse of a citizen of India or a person of Indian origin as mentioned above.

The scheme is broad-based, covers up to four generations and also the foreign spouse of a citizen of India or a PIO.

Benefits :
The benefits accruing to a PIO card holder:

  • No requirement of visa to visit India;
  • No separate “student Visa” or “Employment Visa” required for admission in colleges/ institution or for taking up employment respectively;
  • A PIO card holder will be exempt from the requirement of registration if his stay on any single visit in India does not exceed 180 days.
  • In the event o continuous stay in India of the PIO card holder exceeding 180 days, he/she shall have to get himself/herself registered within 30 days of the expiry of 180 days with the concerned Foreigners Regional Registration Officer/Foreigners Registration Officer.
  • Parity with Non-Resident Indians in respect of facilities available to the latter in economic, financial and educational field.
  • all PIOs including PIO card holders shall enjoy parity with NRIs in respect of all facilities in the matter of acquisition, holding, transfer and disposal of immovable properties in India except in matters relating to the acquisition of agricultural/plantation properties. No parity shall be allowed in the sphere of political rights.
  • Facilities available to children of NRIs for getting admission to educational institutions in India including medical colleges, engineering colleges, Institute of technology, Institute of management, etc. under general categories.
  • facilities available under the various housing scheme of LIC, State Government and other Government Agencies.
  • special counters at the immigration check posts for speedy clearance.

Where can we help ?

  • Application for issue of PIO card
  • Follow up with the authorities for early issue of PIO card and making all compliances
  • Application for issue of duplicate PIO card (in case of loss, etc. of original PIO card)

Non resident Indians who have/ intend to have investments in India

For Non resident Indians who have certain investments, property and bank accounts in India, we manage their financial affairs in India in its entirety as follows:

  • Monitor, record and periodically report on his investments.
  • Facilitate liquidation/lease of property through a top-notch property consultant.
  • Facilitate repatriation of sale proceeds of investment and property.
  • Facilitate repatriation of income from investments and rent from the property let out.
  • Complete banking and other regulatory formalities.
  • Plan his financial transactions to minimise his tax liability in India.
  • File Income Tax Services return.

For Non resident Indians who intend to invest in stock market, property etc., we provide the following services:

  • Devise a personal financial plan.
  • Facilitate acquisition/ lease of property through a top-notch property consultant.

Non resident Indians who inherit assets in India

A NRI inherits assets in the form of investments, property etc in India and intends to either liquidate them and repatriate the sale proceeds of the same or manage the same in most tax efficient manner. We enable him to achieve these objectives by facilitating the clearance from Income Tax Services, RBI and other regulatory authorities.

Non resident Indians/ other Non-residents who have/ intend to set up a business in India

A NRI/ other non-resident businessman intends to set up business in India. We enable him to do so by providing the following services:

  • Develop an entry strategy and a financial model.
  • Undertake location studies and recommend the ideal location.
  • Identify and evaluate potential partners including due diligence reviews
  • Arrange for complete set of regulatory approvals.
  • Arrange finance for the project by preparing a detailed project report and liaison with banks/ financial institutions/ joint venture partners.
  • Facilitate incorporation of a company in India.
  • Organise office infrastructure and manpower during the “in-transit period” of the start up or operate as a representative office.
  • A NRI/ other non-resident already has a business in India. Besides providing the entire gamut of financial and consultancy services, we operate as a representative office/ manage specific business processes.

RETURNING NRI

NRI who return to India for good, should know various aspects of Foreign Exchange Regulations (FEMA), Indian Taxation and Banking Regulations in order to rearrange his financial affairs in India and outside India.

When relocating to India, the following aspects should be taken care of :

  • Compliance of Baggage Rules in India regarding repatriation of overseas assets
  • Redesignation of all Indian bank accounts as Resident accounts
  • Opening of and compliances in respect of 'Resident foreign currency' (RFC) account
  • Information to all companies, funds, etc., of whom shares and securities are held by the non-resident, regarding the change of residential status/relocation to India
  • Compliance in respect of the Indian income-tax Act, 1961 e.g. application for PAN in case you do not have a PAN
  • Miscellaneous other issues

Where can we help ?

  • Compliances regarding repatriation of assets to India
  • Procedure for redesignation of all Indian bank accounts
  • Opening of 'Resident foreign currency' (RFC) account
  • Information to all companies, funds, etc., of whom shares and securities are held by the non-resident, regarding the change of residential status/relocation to India
  • Compliance in respect of the Indian income-tax Act, 1961 e.g. application for PAN in case you do not have a PAN
  • Compliances in respect of Wealth-tax Act, in case required e.g. filing of wealth-tax return
  • Repatriation of legacies/inherited assets and taxability in India thereon
  • Facilitate clearance required under FEMA from RBI to continue to hold assets outside India.
  • Facilitate re-investment of sale proceeds of assets acquired outside India.
  • Plan residential status under FEMA and Income Tax Services.
  • Plan tax liability in India.
  • Make fresh investments in business outside India.
  • Investment and business consultancy in India.

Emigrating Indian/ New NRI

An emigrating Indian/ new NRI wants to retain/ dis-invest assets (property, investments, business) acquired in India and repatriate the income/ sale proceeds thereof.
We enable him to do so as follows:

  • Obtain clearance required under FEMA from RBI to continue to hold certain assets in India.
  • Facilitate repatriation of sale proceeds and income of assets held in India.
  • Plan his tax liability in India.
  • Monitor, record and report on his investments in India.

BANKING ACCOUNTS

Banking accounts can be 'Rupee Account' or 'Forex Account'.
Rupee Account can be:

  • Non-resident External A/c (NRE A/c)
  • Non-resident ordinary A/c (NRO A/c)
  • Non-resident non repatriable A/c (NRNR A/c)
  • Non-resident (special) rupee (NRSR) account scheme

Forex Account can be:

  • Foreign currency non-resident A/c (FCNR A/c)
  • Resident foreign currency A/c (RFC A/c)

Where can we help ?

  • Compliance's regarding repatriation of assets to India
  • Procedure for re-designation of all Indian bank accounts Opening of 'Resident foreign currency' (RFC) account
  • Information to all companies, funds, etc., of whom shares and securities are held by the non-resident, regarding the change of residential status/relocation to India
  • Compliance in respect of the Indian income-tax Act, 1961 e.g. application for PAN in case you do not have a PAN
  • Compliances in respect of Wealth-tax Act, in case required e.g. filing of wealth-tax return
  • Repatriation of legacies/inherited assets and tax-ability in India thereon
  • Facilitate clearance required under FEMA from RBI to continue to hold assets outside India.
  • Facilitate re-investment of sale proceeds of assets acquired outside India.
  • Plan residential status under FEMA and Income Tax Services.
  • Plan tax liability in India.
  • Make fresh investments in business outside India.
  • Investment and business consultancy in India.

Emigrating Indian/ New NRI An emigrating Indian/ new NRI wants to retain/ disinvest assets (property, investments, business) acquired in India and repatriate the income/ sale proceeds thereof. We enable him to do so as follows:

  • Obtain clearance required under FEMA from RBI to continue to hold certain assets in India.
  • Facilitate repatriation of sale proceeds and income of assets held in India.
  • Plan his tax liability in India.
  • Monitor, record and report on his investments in India.

BANKING ACCOUNTS

Banking accounts can be 'Rupee Account' or 'Forex Account'.
Rupee Account can be:

  • Non-resident External A/c (NRE A/c)
  • Non-resident ordinary A/c (NRO A/c)
  • Non-resident non repatriable A/c (NRNR A/c)
  • Non-resident (special) rupee (NRSR) account scheme

Forex Account can be:

  • Foreign currency non-resident A/c (FCNR A/c)
  • Resident foreign currency A/c (RFC A/c)

Where can we help ?

  • Opening of various bank accounts in India viz Rupee account, Forex account
  • Monitoring of your bank accounts with regard to various compliance as also effective tax planning viz crediting the sale proceeds of immovable property in India and repatriation of the same, current income repatriation, legacy, inheritance, etc
  • Issuance of CA Certificate like 15CA & 15CB
 
     
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