There are so many reasons to hire a professional consultant in different sectors. Although the main reasons are their Experience derived from hundreds of man years working in the same field and their deep understanding and professional expertise. Like so, Investment in different sectors needs a professional consultant who can guide you through entire process and help you to get optimal benefits. Let us have a look on the benefits which could be provide by an Investment consultant to NRIs in entire process.
The following services by an Investment Consultant can help you to enjoy a hassle free investment experience and guide you to achieve maximum benefits during entire process:
1. Advice on Tax implications both in India and abroad
2. Filing your returns in India
3. Guidance on Double Taxation Avoidance Agreement
4. Advice on Bank Accounts
5. Advice on FEMA
Various areas of concern arise when an NRI decides to return to the country. NRI’s need guidance and planning before returning to the country. S/he must be guided by the Foreign Exchange Management Act and the Income Tax Act. Listed below are few hiccups that must be addressed before an NRI returns to India:
1) Planning the date of return to enjoy minimum tax liability for that financial year.
2) Possessing and operating NRI bank accounts upon your return and tax implications thereon.
• For NRO account, it must be re-designated to Resident Account
• For NRE account, it must be transferred to RFC account or re-designated to Resident account
• FCNR account, it must be held upto maturity, then converted either to RFC account or to rupee account
• RFC account,It can opened and maintained with authorized dealers on becoming residents. The funds are fully repatriable and denominated in Forex. The funds can be remitted in a foreign country for a genuine purpose by account holder or dependents.
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3) Returning NRI’s must inform all companies, banks, funds, etc. about the change in your residential status.
4) Taxability of income in India and abroad
• In the particular year of returning to India, the tax liability would depend on the residential status as per the Income Tax Act, 1961. As per the Indian Tax Laws overseas, the income will be taxed in India if the assesse is an ordinary resident.
• In the 2 successive years, an NRI who has remained out of the country for more than 9 years shall be a RNOR (Resident but Non Ordinary Resident).
5) The application of Double Taxation Avoidance Treaty, if applicable
6) Information/advice on different Tax laws/FEMA, 199 in terms of assets possessed abroad/income within India or abroad and its taxability
• All foreign exchange and assets overseas, such as bank deposits, stocks, securities, loans, properties, bonds, debentures, etc., owned, held, or acquired by an NRI during his stay abroad, will continue to be dealt with in the same manner even after return and permanent settlement in India.
• FEMA Sec. 6(5) authorizes a returning NRI to hold, transfer, own or invest in the Indian currency. He can do so for security or any immovable property existing in India, if the same was/were owned or acquired by the NRI during his residency in the country or inherited from a resident of India.
• The interests paid by scheduled Indian banks to a non-resident or an RNOR, on RFC deposits is tax exempt (Sec. 10(15) (iv) (fa)). However, this exemption continues only until the time the account holder continues to be RNOR.
• NRI’s also enjoy a separate concessional tax regime for certain types of income as delineated in Chapter XIIA (Sec. 115C to 115I). This benefit continues even after an NRI turns into a resident.