NRI Status and Potential Benefits to NRIs Under FEMA And Income Tax Act


	Home About Us About the Firm Our Team Vision & Mission Why Us Career Registrations Start Your Business Compliances Tax Compliances Services Due Diligence of Company Transaction Advisory ITR Blog Regulatory Company Law RBI SEBI FEMA Income Tax Excise Matters Gallery Knowledge Bank Calculators GST Calculator Tax Calculator TDS Calculator Calculate Net Profit Calculate Net Worth Effective Capital HRA NSC EMI Auto Loan Calculator Home Loan Calculator Get No. Of Installment RERA Calculator Developers Calculator Home Buyer Delay Interest Home Buyer Refund Bulletins RBI SEBI Notification Circular Income Tax Service Tax Central Sales Tax Excise Matters Customs Company Law Labour Laws FEMA The LLP Act 2008 Accounting Standard (INDAS) Others GST VAT Delhi VAT Maharastra VAT Gujarat VAT Telangana VAT Tamil Nadu VAT IGST UTGST Compensation Cess IBC Regulation Utilities Rates of TDS TDS Rates for N.R.I us 195 Rates of Income Tax Depreciation Rates Companies Act Depreciation Rates Income Tax Act ROC Filing Fees (Cos Act, 2013) ROC Fee Structure (Cos Act, 2013) Cost Inflation Index IFSC Codes MICR Codes Rates of NSC Interest Gold and Silver Rates Rates of Stamp Duty LLP Fees National Industries Classification HSN Rate List Deduction u/s 80TTA Vs 80TTB Links Quick Links Important Links GST/VAT Links Ease Of Doing Business Acts Direct Tax Income Tax Act Wealth Tax Act Income Declaration Scheme 2016 Indirect Tax Service Tax(Finance Act, 1994) Central Sales Tax Act, 1956 The Central Excise Act, 1944 Customs Act, 1962 Entry Tax Act Corporate Laws Companies Act, 2013 Companies Act, 1956 LLP ACT SEBI Act, 1992 Company Secretaries Act, 1980 VAT Laws Delhi Value Added Tax Act, 2004 MVAT Act, 2002 West Bengal VAT Act, 2003 Tamilnadu VAT ACT, 2006 Karnataka Value Added Tax Act, 2003 Gujarat Value Added Tax Act, 2003 UP VAT Act, 2008 Rajasthan Value Added Tax Act, 2003 Punjab Value Added Tax Act Haryana Value Added Tax Act Telangana VAT Act 2005 Andhra Pradesh VAT Act, 2005 Bihar Value Added Tax Act, 2005 Other Statutes ESI Act, 1948 PF Act, 1952 Profession Tax Act The Indian Partnership Act, 1932 Societies Registration Act, 1860 Competition Act, 2002 Reserve Bank of India Act, 1934 MRTP Act, 1969 Equalisation Levy Act, 2016 Right To Information Act, 2005 FEMA, 1999 Maharashtra RERA RERA, 2016 Insolvency & Bankruptcy Code, 2016 Benami Property Act 1988 GST Laws IGST Act , 2017 CGST Tax Act, 2017 UTGST Act, 2017 GST (Compensation to States) Act Rules Direct Tax Rules Income Tax Rules Wealth Tax Rules 1957 Income Declaration Scheme Rules 2016 Indirect Tax Rules GST Valuation Rules , 2016 Service Tax Rules CST (Delhi) Rules, 2005 CST (Maharashtra) Rules Customs Valuation Rules Cenvat Credit Rules, 2017 Entry Tax Rules Corporate Laws Rules Companies Rules, 2014 LLP Rules, 2009 LLP Winding up Rules, 2012 Cos Unpaid Dividend Rules, 1978 VAT Laws Rules Delhi VAT Rules, 2005 Maharashtra VAT Rules, 2005 West Bengal VAT Rules, 2005 Tamilnadu VAT Rules, 2007 Karnataka VAT Rules, 2005 Gujarat VAT Rules, 2006 Uttar Pradesh VAT Rules, 2008 Rajasthan VAT Rules, 2006 Punjab VAT Rules Haryana VAT Rules, 2003 Telangana VAT Rules 2005 Andhra Pradesh VAT Rules, 2005 Bihar Value Added Tax Rules, 2005 Other Statutes Profession Tax Rules NBFC Deposits Directions, 1998 NBFC & Misc NBC (Advt) Rules, 1977 NBFC Auditor Report Directions, 2008 Delhi Labour Welfare Fund Rules, 1997 Cost records and audit Rules, 2014 Baggage Rules, 2016 Equalisation Levy Rules, 2016 NCLT And NCLAT Rules Insolvency & Bankruptcy Rules Benami Property Rules, 2016 GST Rules CGST Rules, 2017 IGST Rules 2017 Forms Income Tax Forms ROC Forms (Cos Act, 2013) ROC Forms (Cos Act, 1956) Income Declaration Forms Wealth Tax Forms Service Tax Forms Companies Unpaid Dividend Forms NBFCs Forms LLP Winding up FEMA Forms LLP Forms CGST Forms GST Forms Accounts and Records Advance Ruling Appeals and Revision Assessment and Audit Composition Demands and Recovery Input Tax Credit Inspection, Search and Seizure Offences and Penalties Payment of Tax Refund Registration Returns Transitional Provisions Value of Supply Admin Login Email Login Time Sheet Contact Us


	Blog Categories All Audit and Assurance (0) COMPANY LAW (3) FEMA (2) Income Tax (3) Labour Law (0) MISC. (7) RBI (0) Startups (38) TRADEMARK (44) NRI Status and Potential Benefits to NRIs Under FEMA And Income Tax Act Category: FEMA, Posted on: 19/04/2024 , Posted By: VGC ADMIN Visitor Count:54 NRI Status and Potential Benefits to NRIs Under FEMA And Income Tax Act Do you know when you’re considered a Non-Resident Indian (NRI) under the Foreign Exchange Management Act (FEMA)? And are you aware of the benefits NRIs can enjoy in India? We Vikram Grover and company, will decode the multiple benefits to NRIs under FEMA and Income TAX Act in India. Let’s break it down in simpler terms. Are you planning to shift outside India or stay in India permanently? Then, you must know the tax laws for your income, or if you can still get tax-free interest when you come to India permanently. However, you must know the taxation services about whether you qualify as a resident or an NRI to enjoy the benefits of NRIs under FEMA and Income Tax Act. According to FEMA, NRI for this purpose is defined as a person resident outside India who is citizen of India. In terms of Regulation 2 of FEMA Notification No.13 dated May 3, 2000, Non-Resident Indian (NRI) means a person resident outside India who is a citizen of India. Person of Indian Origin (PIO) means a citizen of any country other than Bangladesh or Pakistan who had (a) at any time held Indian passport or (b) he or either of his parents or any of his grandparents was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 or (c) the person is a spouse of an Indian citizen or a person. In simple terms, Under the Foreign Exchange Management Act (FEMA) of India, an individual is considered a Non-Resident Indian (NRI) if he/she meets the following criteria: Residential Status: An individual who has been residing outside India for more than 182 days in the preceding financial year is considered an NRI. Indian Citizenship: An Indian citizen who stays abroad for employment, business, or vocation outside India, or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad, is considered an NRI. Indian Origin: A person of Indian origin who is not a citizen of Pakistan or Bangladesh, or Sri Lanka, or Afghanistan, or China, or Iran, or Nepal, or Bhutan is considered an NRI. "Person of Indian Origin" is defined as someone who, at any time, held an Indian passport or who or either of whose parents or grandparents was a citizen of India according to the Government of India Act, 1935 or the Constitution of India. NRIs are subject to certain regulations regarding their financial transactions, investments, and income earned in India. They are eligible for various benefits and facilities under FEMA, including the ability to invest in India, repatriate funds, and hold certain types of bank accounts. However, NRIs must comply with the regulations and guidelines set forth by FEMA to avail of these benefits Let discuss — the benefits NRIs can avail themselves in India under FEMA and the Income Tax Act—information you wouldn’t want to miss. FEMA Benefits: Repatriation of Funds: NRIs can freely repatriate funds earned in India like rent, dividends, and pension after paying applicable taxes. Restrictions apply to the repatriation of the principal amount from some investments. Global Investments: NRIs have the freedom to invest in immovable property outside India with their income earned abroad. They can establish companies, purchase shares in foreign stock exchanges, enter partnerships, or set up businesses overseas without needing Reserve Bank of India (RBI) approval. Opening Accounts: NRIs can maintain various bank accounts in India under FEMA. These accounts allow them to hold foreign currency deposits and manage their finances in India. Income Tax Act Benefits: Tax Exemption: Income earned outside India by NRIs is generally not taxable in India. This can be a significant advantage for those working abroad. Tax-Friendly Accounts: Interest earned on Non-Resident (Ordinary) Rupee (NRO) accounts and Foreign Currency Non-Resident (FCNR) accounts can be tax-exempt in India under certain conditions. Lower TDS on Property Sales: NRIs can apply for a lower Tax Deducted at Source (TDS) certificate when selling property in India. This reduces the upfront tax burden if there's minimal or no capital gain from the sale. Double Taxation Avoidance Agreements (DTAAs): India has DTAAs with many countries. These agreements can help NRIs avoid paying taxes on the same income in both India and their country of residence. GST Registration: Under the GST Act, NRIs intending to conduct business in India can apply for GST registration. Other Benefits: 1. Company Setup: NRIs have the option to set up a private limited company in India. Gold and Silver Import: NRIs can import up to 1 kg of gold and 10 kgs of silver when returning to India. Important to Note: · Specific benefits and eligibility criteria may vary depending on the NRI's residential status, type of income, and the provisions of the Income Tax Act and FEMA regulations. · Consulting a tax professional specializing in NRI taxation is recommended to ensure you understand the latest regulations and maximize the benefits available to you. It's important for NRIs to stay updated with the latest regulations and consult with tax advisors to understand the specific benefits available to them based on their individual circumstances. Disclaimer: The content of the blog does not create any responsibility of the firm / its authorized persons whose website is being accessed. The blog is not for legal use. Kindly verify the correctness of data/contents from your own sources. This is only for information purpose. Add a Comment Name: Your Comment: View Comments (0)

22027 Times Visited

Want to know more ?