India's growing economy, large consumer market, largest democracy in the
world and aspiration to grow beyond limits is attracting more and more
Non-Resident Indians (NRIs) to look for opportunities of investment in India.
Aspiration of vast young pool of skilled human assets, increased education
level, prowess in Information Technology and Information Technology Enabled
Services (ITES), emphasis of Central Government on making India a major hub for
manufacturing activities for the world is contributing significantly to India
Growth Story and making it a vibrant investment destination. Taking advantage
of overall economic growth, business sentiments and shifting focus from China,
India has emerged as most promising investment destination to Non-Resident
Indians (NRIs), where policies of government are also contributing
significantly in attracting more and more Non-Resident Indians to invest in
India and become part of India Growth Story.
To the Non-Resident
Indians (NRIs), scouting for great investment opportunities, we offer the
entire gamut of financial planning and advisory services including regular
updates on investment opportunities, performance report on their investments, Tax
filing in India, wherever desired.
Permitted Investment
Avenues available to NRIs:
- Government securities
through primary dealers.
- Non-convertible
debentures of Indian Companies,
- Fixed Deposits with
Public Limited Companies,
- Commercial papers issued
by Indian companies,
- Bonds issued by Public
Sector Undertakings (PSU's),
- Mutual Funds,
- Shares and convertible
debentures of Indian Companies
Investment in Mutual
Funds, shares and convertible debentures can be on repatriable as well as non-repatriable
basis, provided the company is not involved in plantation, real estate or
agricultural business. Investment on repatriable basis is subject to reporting requirements
of RBI. NRIs are permitted to make investments both in the primary as well as
secondary market.
- Capital Contribution to Proprietorship
/ Partnership Firm can only be on non-repatriable basis,
- General permission is
available to a NRI, being an Indian Citizen, to invest in immovable property in
India, provided funds are remitted from outside India or through NRE/ FCNR
accounts. NRIs / PIOs can freely rent out their immovable properties, without
seeking any permission from RBI.
Prohibited Investment
Avenues to NRIs:
- Bearer securities like
Indira Vikas Patra/Kisan Vikas Patra,
- National Savings Certificates,
- Public Provident Fund,
- RBI Bonds,
- Senior Citizen Savings
Scheme 2004.
- Investment already made,
if any, shall persist.
Extent of Tax Liability:
Based on the residential
status of a tax payer and the place where the income is earned, the income in
the hands of various persons is taxable as under:
Resident in india:All
incomes whether earned in India or outside India. However benefit of tax
treaties is available, if tax payers meet specific conditions of the treaty and
domestic tax regulations.
Not
Ordinarily Resident in India: All incomes which are
- Earned in India, and
- Earned outside India if
the same is derived from a business which is controlled in India or from a
profession which is set up in India.
Since a resident is
liable to pay tax in India on his 'total world income', it is possible that he
may have to pay tax on his foreign income in that country also. To avoid provide
relief in such a situation the Government of India has entered into agreements (tax
treaties) for avoidance of 'double taxation' with different countries,
consequent upon which impact of double taxation is significantly reduced in the
hands of Resident in india.
Non
Resident: All incomes earned in India
Since Non-Resident
Indians may also be liable to pay tax in their home country on income earned in
India, certain provisions have been inserted in domestic tax laws of India to
provide relief to such tax payers both resident of countries with whom the Government
of India has entered into agreements (tax treaties) for avoidance of 'double
taxation' and to resident of other countries as well. Consequent upon this
impact of double taxation is significantly reduced in the hands of Non-Resident
in India.
Q.
Who is a Person Resident in India (Resident Ordinarily
Resident (ROR)) as per Indian Income Tax Law:-
A Person Resident
in India is an individual who satisfies one of the following conditions:
- Resides in India for a
minimum of 182 days in a year.
- Has resided in India for
a minimum of 365 days in the immediately preceding four years. In addition, he
must reside in India for a minimum of 60 days in the current financial year.
Q.
Who is a Person Not Ordinarily Resident in India (Resident Not Ordinarily Resident (RNOR)) as per Indian Income
Tax Law:-
A Person who is
considered as Resident in India as aforesaid is considered as Resident Not
Ordinarily Resident (RNOR), if both the conditions specified below are met:
- He has been resident in India in at least 2 out of 10 immediate preceding previous
years.
- He has resided in India for at least 730 days in seven immediately preceding
previous years.
Q.
Person Non-Resident in India as per Indian Income Tax Law:-
An
individual who does not satisfied either of the two conditions specified above is
regarded as a non-resident and is taxed in India accordingly.