Working abroad can be an exciting opportunity, but before leaving your home country, there are important things to consider. If you are an Indian citizen working overseas for more than 181 days, you will be classified as a Non-Resident Indian (NRI). This classification has implications for your financial accounts and investments back in India. In …
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The Income Tax Act allows residents of India to deduct the income tax paid in the United States from their tax liability, as per the provisions of the Double Taxation Avoidance Agreement (DTAA) between India and the United States. Rule 128(9) of the Rules, which does not provide for the disallowance of Foreign Tax Credit …
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Acquiring or transferring immovable property by Indian residents outside India and non-residents in India is considered a capital account transaction and is subject to restrictions. The acquisition is governed by sections 6(3), 6(4), and 6(5) of FEMA and FEM (Non-debt Instruments) Rules, 2019. In some cases, RBI approval is mandatory to purchase immovable property in …
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The Non-Resident (External) Rupee Account Scheme, or NRE, is governed by Part II para 4 of RBI FED Master Direction No. 14/2015-16 dated 1-1-2016 and Schedule I of FEM (Deposit) Regulations, 2016. The instructions for opening and maintaining the account are given in Schedule 1 to Foreign Exchange Management (Deposit) Regulations, 2016. The key features …
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Foreign Direct Investment (FDI) is an important source of capital for startups in India. The government has introduced various regulations to facilitate FDI in the startup sector. In this article, we discuss the regulations and reporting requirements for FDI in startup companies in India via an issue of Convertible notes. What is Convertible Note Convertible …
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The Bangalore ITAT recently dismissed an appeal by Nitesh Estates Ltd., a real estate company, that was subject to Section 201 proceedings for non-deduction of tax at source under Section 195 on the sale of an apartment to non-resident (NRI) Mr. Mahesh Bhupathi. The ITAT found that once the conditions laid down in Section 195 …
The Income Tax Appellate Tribunal (ITAT) in Bangalore has allowed an appeal filed by an NRI-assessee and deleted the penalty imposed under Section 271D of the Income Tax Act, 1961. The ITAT held that the NRI-assessee had a reasonable cause for accepting part of the sale consideration in cash, despite the violation of Section 269SS. …
As a Non-Resident Indian (NRI), filing income tax returns in India can be a complex and daunting task. It is important to avoid common mistakes that can lead to unnecessary penalties and legal issues. Here are some of the top mistakes that Non-Resident Indian (NRI) should avoid while filing their income tax returns. We welcome …
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Acquiring property in India can be a complex process, particularly for those who reside outside the country. Indian citizens living abroad, known as Non-Resident Indians (NRI), are subject to specific regulations when it comes to purchasing or investing in Indian properties. The Foreign Exchange Management Act (FEMA) of 1999 and the notifications issued under it …
