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Q1 - You a non-resident getting interest on your NRE Account - Is the interest taxable?
Ans - NO. The interest you earn is not taxable.
Q2 - How can you legally repatriate the total proceeds of the sale of your property when you have a �white� and a �non-white� value?
Ans - You can only repatriate the money accounted for (white value). You cannot repatriate the money that cannot be accounted for (non-white value).
Q3 - The capital gain tax is same irrespective of whether I sell my long-term and short-term capital asset.
Ans - No. This is untrue. The capital gain you would receive by selling your short-term capital asset would be taxed as a normal income, while that against your long-term capital asset, with indexation, would be taxed at 20%.
Q4 - As a NRI due to acquire citizenship of a foreign land, I am worried about the property I am going to inherit.
Ans - It is not wrong to keep/maintain inherited land as an OCI. This is mainly because you, as an OCI, have added privileges compared to a PIO. However, if you decide to sell your property, you can do so only to a Resident Indian, and not a non-resident (NRI, PIO or OCI).
Q5 - I have a NRI PAN and all my earnings are from abroad. Do I have to pay tax for the same?
Ans - No. Your income is taxable ONLY if your income is generated from within the Indian Territory. Just because you have a PAN does not mean you have to pay tax.
Q6 - Some of my friends/relatives have told me that I need to declare my savings in my NRE Account and also pay tax for the same.
Ans - If you are a non-resident for five or more years, you do not have to pay any tax against your NRE Account. Also tax is collected only on interest, not capital.
Q7 - My office/company is sending me abroad. What happens to my savings back here? Can I continue with the same account? And if yes, then do I have to pay tax?
Ans - You need to inform your bank of your NRI status so that your savings bank account can be converted to a NRO Account. You may use this the same way you were before acquiring your NRI status. If you are a shareholder with/in any company, you need to inform them also about your NRI status. However, if you already have a DMAT account, it is not needed. But your Depository participant (DP) HAS to be informed. You will file your tax returns as a NRI, but not if your income is less than the minimum taxable income in India. But, we advise you to pay tax to maintain continuity irrespective of your income. Also, if you had any investments or held any asset prior to your becoming a NRI, you may handle them as you did prior, the only difference being that your original amount will become non-repatriable. We recommend that you open a NRE Account as long as you are a NRI as the interest you would receive in this account is tax-free.
Q8 - Suppose I buy a property in India from my savings from abroad. Can I sell it anytime or is there a lock in period? What are the repatriation rules?
Ans - You can sell you property anytime you want as per the repatriation rules. Since the mid year review of the economic policy by the RBI, the lock in period has been lifted.
Q9 - What is the rule of repatriation if I take loan from an Indian Bank to buy property in India?
Ans - Repatriation is possible IF you pay off the loan instalments through your NRE Account or by transferring funds from abroad.
Q10 - As a citizen abroad, say from USA can I acquire property in India? If yes, then will I be taxed in both India and my resident country? Also, will I be taxed on my income from abroad upon my arrival in India?
Ans - As a PIO, you can acquire property, except agricultural land, in India. If your resident country is one with whom India has signed the DTAA, then you will not be taxed in both the countries. Also, upon your arrival you will be a RNOR, and will remain one for two years, implying that your income from abroad will not be taxed. After this period, your global income will be taxable.
Address : Contact Person : Phone No. :
170/11, Bhikam Colony, Tigaon Road, Ballabgarh, Faridabad-121004,
Ms. Shubhra Agrawal (Director) +91-129-2242098
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