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A
Non resident Indian (NRI) is… |
An individual
who does not reside India but living outside
with regard to the FEMA act.
An Indian is: |
| (1) Any
individual living in India for more than one
hundred and eighty two |
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days during
the previous financial year. |
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A.
an individual living
outside India or traveling outside India,
in either case
•
Taking up a job outside India, or
• managing a business or occupation
outside India
• It also includes unaccountable stay
abroad. |
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B.
this also applies
to people staying in India
•
Working in India
• Managing a business or occupation
outside India
• It also includes unaccountable stay
abroad. |
| (2)
Particular individuals or body corporate registered
or incorporated in India, |
| (3)
Any organization, agency or subsidiary India
owned or controlled by a |
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person
resident outside India, |
| (4)
Any organization, agency or subsidiary outside
India owned or controlled by a |
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person
resident in lndia |
|
Indian
Origin Person is… |
| All
individuals having record of possession of
Indian passport or either of his or parents
any of his grand parents was a citizen of
Indian by virtue of the Constitution of India
or the Citizenship Act, 1955 (57 of 1955)other
than citizen of countries like Bangladesh
or Pakistan , Sri Lanka, Afghanistan, China,
Iran, Nepal or Bhutan |
|
Leasing
out or renting your property |
You
are entitled to lease or rent out any property
which you have purchased genuinely which
you are unable to utilize at present due
to your stay abroad by the Reserve Bank
of India freely repatriable outside India,
in retrospect you can also repatriate your
income outside India gained in the process.
|
|
Real estate
development lend a hand |
| All
NRI’s are invited to form partnership
or invest with companies incorporated |
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in India
by the Reserve Bank through new rules. |
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• |
All investments
can be made in the form of equity shares /convertible
debentures to companies involved in. |
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• |
Building residence
and developing serviced plots. |
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• |
business establishments,
township, housing &urban development including
roads bridges |
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• |
All
the overseas Corporate Bodies (OCBs) predominantly
owned by NRIs. Overseas Corporate Body are
the overseas company, partnership company,
and other certified groups predominantly
owned directly or indirectly to the extent
of at least 60 per cent by NRIs and includes
any overseas trust in which not less than
60 per cent beneficial interest is held
by NRIs directly/indirectly but irrevocably. |
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• |
Dividend/interest
on equity shares/debentures can, however,
be remitted as per the procedure laid down
in paragraph 10.C.24 of Exchange Control
Manual subject to payment of applicable
taxes without any lock-in period. |
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• |
All these provisions
can be utilized as long as NRI’s hold
60% |
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• |
This
will require a certificate overseas auditor/chartered
accountant/certified public accountant in
form OAC/OAC-1 to be checked by Reserve
Bank/authorized dealers. |
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• |
This certificate is
for ensuring that the persons of Indian nationality/origin
are beneficiaries than figure head nominees
only. |
|
Asset
value remittance |
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• |
The
NRI’s/PIO’s/foreign nationals
including retired,employed,NRI widows will
have to remit taxesof the sale proceedings
of immovable and inherited properties within
a period of ten years subjected to prevailing
taxes.This is also applicable to PIO retired
or inherited asset from persons who are
or where citizens of India.
|
|
Repatriation
of sale Proceeds NRIs/PIOs are permitted to
repatriate. |
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• |
The
immovable properties other than the ones
like agriculture land, plantation, farm
house property can be repatriated on the
condition that the property has been acquired
based on the foreign exchange laws. The
absence of the lock in period has been irrespective
of the period of property held.The remittance
is either equal or lower than the foreign
exchange brought in for acquiring the property
or debit in NRE/FCNR account. The sale proceedings
can be for two or less than two properties.
The property if it where acquired by authorized
dealer/housing finance institutions, the
repatriation of the proceedings will not
exceed the loans needed to repay foreign
inward remittance or debit to the NRE /FCNR
accounts. |
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• |
Repatriation
to credit to NRE/FCNR accounts is allowed
for refund of applications/ernest money/purchase
consideration together with interest net
income tax subject to foreign exchange brought
in through normal banking channels or debit
to NRE/FCNR accounts.
|
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Present
earnings remittance |
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• |
All the current income
can be repatriated through NRE/FCNR account
is after it is subjected to the deduction
of taxes. |
