ebook img

NRI Gide 2012 Ver 2.00 PDF

580 Pages·2013·4.73 MB·English
by  
Save to my drive
Quick download
Download
Most books are stored in the elastic cloud where traffic is expensive. For this reason, we have a limit on daily download.

Preview NRI Gide 2012 Ver 2.00

NRI GUIDE 2013 (Ver 3.00) (A Comprehensive Guide for Indians residing outside India) Prepared by Prakash Nair All your Financial Planning and Investment advisory needs visit www.yourownadviser.com 2 | P a g e N R I G u i d e 2 0 1 3 V e r 3 . 0 0 w w w . y o u r o w n a d v i s e r . c o m PREFACE This Free NRI guide has been compiled with the help of information available on official website of various government departments like Reserve Bank of India, Income Tax Department, various State Governments, Department of Oversea Affairs, Ministry of Home Affairs, SEBI, and other reliable website sources. I have taken adequate care to provide current and authentic information. This NRI Guide is intended to serve as a ready reference book to guide NRIs on various matters affecting their financial and other related subjects. This does not purport to be a legal document. So I am not sure that, any errors occurred while compiling this reference guide. In case of any variation between what has been stated in this NRI Guide and the relevant Act, Rules, Regulations, Policy Statements, Government Orders/Circulars etc., the latter shall prevail. Kindly note that, rules related to NRIs and tax are subject to change. Errors and omissions are expected. This free e-book is circulated with the understanding that, neither the author nor the publisher will be responsible for any action taken on the basis of contents of this book whether directly or indirectly for any error or omission to any person whether a user of this e-book or not. The persons willing to accept this disclaimer only required to read this e-book. Prakash Nair INDEX Sl Chapters and contents Page Nos Nos Abbreviations 17-18 CHAPTER - 1 Residential Status 1 A Non Resident Indian (NRI) 19-23 2 A Person of Indian Origin (PIO) 3 How to Determine the Residential Status of an Indiviudal 4 Resident and ordinarily resident - ROR 5 Importance of Residential Status 6 What is India DIASPORA 7 Residential Status Changes from Resident to Non -Resident (Tax, Social Security etc) 8 List of itmes to be completed before becoming an NRI CHAPTER - 2 Various Types of Bank Accounts - NRIs are permitted to open 24-51 1 Various Types of Bank Account - NRIs are permitted to Open 2 Non-Resident Ordinary/ Rupee Account (NRO Account) 2.1 RBI Master Circular No. 2/2012 -13 related to NRO Account 2.2 RBI Circular - Condtions for Opening NRO Account by Banglades Nationality 3 Non-Resident (External) Rupee Account (NRE Account) 4 Foreign Currency Non Resident (Bank) Account – FCNR (B) Account 5 NRE Current Accounts 6 NRO Current Account 7 Resident Foreign Currency Accounts (RFS Accounts) 8 Foreign Currency Account CHAPTER -3 Facilities Available to NRIs/PIO 52-55 1 Investment facilities for NRIs 2 NRIs are allowed, without limit, purchase on repatriation basis 3 NRIs are allowed, without limit, purchase on repatriation basis 5 An individual resident can borrow money from his close relatives outside India Repayment of Housing Loan of NRI / PIOs by close relatives of the borrower in India 6 (RBI Circular) Foreign Exchange Management (Deposit) Regulations, 2000 - Credit to Non Resident 7 (External) Rupee Accounts Loan given to non-resident 4 | P a g e N R I G u i d e 2 0 1 3 V e r 3 . 0 0 w w w . y o u r o w n a d v i s e r . c o m CHAPTER - 4 Investment Options not Permitted for NRIs 56-59 1 NRIs are not permitted to invest in small savings or Public Provident Fund (PPF) . 2 PPF (Public Provident Fund) 3 NSC (National Savings Certificate) – 5 years and 10 years 4 Senior citizens savings account 5 Tax saving infrastructure bonds under section 80CCF 6 Post office time deposits are not available for NRIs . 8 Restritctions of Investments by NRIs/PIOs residing in US and Canada 9 FEMA Circular related to restircation for NRI's for Opening Small Savings Account s CHAPTER - 5 NRIs Investments in Immoveable Properties 60-70 1 Investment in immovable Property 2 NRI investment norms in real estate eased RBI Circular - Acquisition & Transfer of Immovable Property in India by 3 NRIs/PIOs/Foreign Nationals of Non-Indian Origin 4 Press Release Ministry of Finance - Acquiring land by NRIs CHAPTER - 6 NRI Taxation 71-89 1 Expatriates Working Abroad – Tax Provisions 1 a-b Residential Status for Taxation purposes 2 Income Tax Rates proposed in Union Budget 2013 for the financial year 2013-2014 3 Budget – 2103 Income Tax Surcharge Rate Hiked for Higher Income Assessees 4 Additional Tax Rebate of Rs. 2,000.00 from Assessment Year 2014 -2015 5 Particulars of Income Tax Incidence for various tax status 6 Tax Exemptions from Income Tax available for NRIs 7 Other Tax Aspects related to NRIs 8 What is tax on NSC Maturity ? 9 Special Provisions Relating to Non -Residents 10 Income Tax Clearance Certificate 11 Tax Exemption Certificate - Lower or Nil Rate of TDS: 12 Renting out of Property by an NRI in India 12a Remittance of Rent 12b Tax treatment of rental income 12c Deemed rental income 5 | P a g e N R I G u i d e 2 0 1 3 V e r 3 . 0 0 w w w . y o u r o w n a d v i s e r . c o m 12d Service Tax applicable to renting out of residential properties for commercial use 13 Taxability of immovable property received for Inadequate Consideration (Budget 2013) 14 NRI and Senior Citizen status for Income Tax calculation purposes 15 Tax Liabilities related to NRIs investments made in Joint basis 16 Bank Term Deposits - Tax aspects 17 Property Rental income – Tax Aspects 18 Mutual Fund/Equity Investments – Tax Aspects 19 NRI income and Applicability of TDS on the same 20 Tax Treatment of overseas Financial Assets. 21 Other Tax Aspects related to NRIs including Immovable Properties 22 Tax Treatment of selling property abroad 23 Tax Treatment of Rental Income Earned Abroad 24 Tax Treatment of Dividend on overseas Investments 25 One Time Financial Settlement 26 Capital Gains – earned abroad Compulsory filing of Income tax return in relation to assts located outside India 27 irrespective of income 28 Section 194E of the Act – Tax deduction at source from payment to non -resident entertainer, sports person etc 29 Tax Treatment of Interest on Bank Deposits 30.Savings bank interest upto Rs. 10,000.00 is exempted from tax (Section 80 TTA of 30 IT Act) Deduction of interest paid on more than one loan borrowed for purchase or 31 construction of same house CHAPTER - 7 Budget 2013 - Tax Proposals 90-98 Finance Bill 2012- passed by Lok Sabh a CHAPTER - 8 Tax Deduction at Source (TDS) 99-103 1 Interest on Investments 2 Capital Gain on Securities (TDS) 3 TDS on salary payments to Non Residents & Expatriates 4 How NRI can claim TDS exemption 5 TDS on Transfer of Immovable Properties except Agricultural Land 6 Tax Deducted at Source related to NRIs CHAPTER - 9 Double Taxation Avoidance Agreements (DTAA) 104-114 6 | P a g e N R I G u i d e 2 0 1 3 V e r 3 . 0 0 w w w . y o u r o w n a d v i s e r . c o m 1 Double Taxation in India - DTAA 2 Capital Gain tax rates under DTAA 3 The Countries with which India has DTAA 4 How to get relief in case of Double Taxation? 5 Where there is an DTAA agreement (Section 90) 6 Where there is an NO DTAA agreement (Section 91) 7 Misuse of DTAA, Treaty shopping and amendment made by Finance Act 2012 8 Tax rates applicable in India under DTAA Agreement 9 Amendments relating to DTAA provisions (Union Budget 2012) 10 Tax Residency Certificate (TRC) for Indian & Non Resident wef 01.04.2013 11 11.Finance Ministry clarification on tax residency certificate CHAPTER -10 Form 15 G and Form 15H 115-116 From 15G & Form 15H - NRIs are not eligible to submit these forms CHAPTER -11 Capital Gain Tax 117-131 1 Capital Asset 2 Short Term Capital Gain (STCG) 3 Long Term Capital Gain (LTCG) 4 Computation of Indexation Benefits 5 What is the indexed cost of acquisition? 6 Cost Inflation Index Form 1981 to 2013 7 Capital Gain Exemptions can be availed 8 What are the consequences if a new house is transferred within 3 years? 9 Exemption available on capital gains that arise from transfer of house property 10 How to avoid paying capital gains tax Exemption of long term capital gains on transfer of residential property if invested in 11 plant machinery through small/medium enterprise , for 5 years (Budget 2012 proposal) Relief from long-term capital gains tax on transfer of residential property if invested in a 12 manufacturing small or medium enterprise 13 Capital Gains Accounts Scheme 14 Who are eligible to take the advantage 15 List of Banks who can Accept Deposit 16 Opening a bank account for Capital Gains Account Scheme - 17 Capital Gain treatment of Inherited or gifted properties 7 | P a g e N R I G u i d e 2 0 1 3 V e r 3 . 0 0 w w w . y o u r o w n a d v i s e r . c o m Please note that the long -term capital gains earned by you from inherited shares sold 18 on any recognized stock exchange in India by paying the applicable STT are exempt from tax provided CHAPTER - 12 132-136 Wealth Tax Implications of NRIs 1 What are all the assets included for Wealth Tax computation ? 2 Assets not included for Wealth Tax computation 3 No wealth tax on agriculture land 4 How Net Wealth in determinded 5 The Method of valuation of Assets 6 What are all the exceptions available 7 What about NRIs returning to India ? 8 How Should NIRs file Wealth Tax Retunrs ? 9 E- filing of annexures -less return of Wealth Tax - Budget 2013 CHAPTER - 13 Guide on filing of Income Tax Return by NRIs 137-145 1 Whi is a Non-Resient In India ? 2 Whi is liable to file Income Tax Returns 3 Are there any exemption from filing tax retuns ? 4 What is the deadline for filing Tax Returns ? 5 A guide to filing of Income Tax Retunrs online/offline 6 Detaisl required before logging into E -filing website 7 Steps to file Income Tax Return online 8 Benefits of e-filing over paper filing Exemptions from filing of Income Tax Returns - Salaried Employees income upto five 9 lash Wh 10 Whi can't claim exemption 11 IT clarification dated 25/07/2011 - filing of tax returns - salaried employees CHAPTER - 14 Clubbing of Incomes 146-148 CHAPTER - 15 Tax on Gifts - the facts need to know 149-150 CHAPTER -16 151-153 What is Advance Tax CHAPTER - 17 8 | P a g e N R I G u i d e 2 0 1 3 V e r 3 . 0 0 w w w . y o u r o w n a d v i s e r . c o m General Tax Deduction available for NRIs 154-160 1 NRI Tax-saving tips 2 Section 80C of Income Tax Act 2.1 Life Insurance and Retirement/Pension Plans 2.2 Tax-breaks in respect of Life Insurance Policies 2.3 Raising limit of percentage of eligibel premium for Life Insurance Polcies 2.4 Investment in House property 2.5 ELSS (Tax saving Equity Mutual Fund schemes) 3 Section 80D - Health Insurance Premium 3.1 NRIs- Deduction U/s 80D premium paid for Mediclaim Policy 4 Deductions u/s 80 G 5 Deduction under 80E 6 Bank Deposits and applicable tax - Sect 80TTA 7 Rajiv Gandhi Equity Savings Scheme CHAPTER - 18 NRI Welfare Schemes 161-171 1 Pravasi Bharatiya Bima Yojana 2 Deserted NRI Women Welfare Scheme 3 Indian Community Welfare Fund (ICWF) 4 Facilitating investment in India 5 Know India Program (KIP) 6 Scholarship Programme for Diaspora Children 7 Migrant Resource Center, Kochi 8 NRIs - Facilities for Returning Indians 9 Investment facilitation and knowledge networking 10 Bilateral Labour Co -operation 11 Global Indian Network of Knowledge (Global Ink) 12 India Development Foundation of Overseas Indians 13 Scholarship Programme for diaspora Children (SPDC) 14 Direct Admission to Students Abroad (DASA) 15 Reservation for NRIs at Indian educational institutions 16 Assistance for problems relating to Overseas Indian Marriages 17 Voting Rights to Non-resident Indians 18 Double Taxation related maters 19 Recruitment of maid for Oman 9 | P a g e N R I G u i d e 2 0 1 3 V e r 3 . 0 0 w w w . y o u r o w n a d v i s e r . c o m CHAPTER 19 State Governments Welfare Schemes 172-177 1 Government of Assam 2 Government of Bihar 3 Government of Gujarat 4 Government of Karnataka 5 Government of Kerala 5.a Pravasi Pension Scheme for Non -Resident Keralites 5.b Pravasi Identity Card 6 Government of Orissa 7 Government of Rajasthan CHAPTER 20 NRI Investment Options 178-189 1 Investments in Shares and Securities listed in Indian Stock Market 1.a Portfolio Investment Scheme (PIS) for NRIs 1.b IPO Electronic Mode and Electronic Voting 1.c Securities Transaction Tax (STT) (2012 Budget proposal) 2 NRIs investment in Mutual Funds Schemes 3 FDI (Foreign Direct Investment) in Partnership Firm / Proprietary Concern 4 Company Fixed Deposit Investments for NRIs 5 Non-Banking Financial Company (NBFC) Deposits 6 Investment in Commercial Papers (CD) by NRIs CHAPTER 21 National Pension System (NPS) - NRIs are eligible to invest 190-197 CHAPTER - 22 PAN ( Permanent Account Number) 198-206 1 NRIs and PAN 2 Advantages of Having a PAN 3 How to apply for PAN 4 New PAN Application From 49A and 49AA w.e.f 01/11/2011 5 INSTRUCTIONS FOR FILLING FORM 49A 6 GENERAL INFORMATION FOR PAN APPLICANTS CHAPTER - 23 Know Your Customer (KYC) Requirements 207-212 1 Background 10 | P a g e N R I G u i d e 2 0 1 3 V e r 3 . 0 0 w w w . y o u r o w n a d v i s e r . c o m

See more

The list of books you might like

Most books are stored in the elastic cloud where traffic is expensive. For this reason, we have a limit on daily download.