A resident Indian may borrow in rupees on non-repatriation basis from NRI close relative. Loan shall be received by way of inward remittance from outside India or out of NRE/ NRO/ FCNR/NRNR/NRSR a/c of NRI maintained with a Bank in India. The period of the loan shall not exceed 3 years and rate of interest shall not exceed 2% point over the prevailing bank rate. The borrowed amount is not permitted to be repatriated outside India.

The payment of interest, repayment of loan shall be made by credit to the NRI’s NRO a/c or NRSR a/c.

Funds borrowed in rupees from NRI close relative shall be utilized by Resident Indian for his own business purpose only other than certain specified businesses*. He is not permitted to utilize the loan funds for any investment, whether by way of capital or otherwise, in any company/ partnership firm/ proprietorship concern or any entity, or for relending.

* the business of chit fund, as Nidhi Company, agricultural or plantation activities or real estate business; or construction of farm houses, or trading in Transferable Development Rights.

Provided that RBI may permit such resident entities/ companies to use such borrowed funds:

• For on lending/ re-lending to the infrastructure sector; or

• For keeping in fixed deposits with banks in India pending utilization by them for permissible end-uses.

Yes, where a Bank in India has granted loan to a NRI such loans may also be repaid by any relative (as defined under the Companies Act), of NRI by crediting the borrower's loan a/c through the bank a/c of such relative.

Yes, NRI is permitted to avail loan from a Bank in India subject to terms and conditions specified by RBI. Banks can grant loan to NRIs against the security of shares and other securities and immovable property (other than agricultural land / plantation property / farm house).

Yes, NRIs are permitted to acquire loan from the Bank till the extent of 90% of the purchase price of the ESOPs or Rs. 20 lakhs per NRI employee whichever is lower. The loan amount shall be directly paid to the company and should not be credited to NRI’s a/c’s in India. Additional conditions have been laid down by RBI for the same.

Yes, an individual resident Indian can borrow sum not exceeding the LRS limit (current limit is USD 250,000/-) or its equivalent from his close relatives staying outside India, subject to the conditions that:

• the minimum maturity period of the loan is one year;

• the loan is free of interest; and

• the amount of loan is received by inward remittance in free foreign exchange through normal banking channels or by debit to the NRE/FCNR a/c of the NRI.

She can freely avail loan/ overdraft against securities of her NRO/NRE FDs in India without any monetary ceiling. The end use of the loan amount is however specified under FEMA.

Third-party being RI, firms or companies resident in India can avail loan/overdraft against security of NRO deposits for personal/business purposes, subject to stipulated terms and conditions.

However, loan amount cannot be utilized for relending, agricultural/plantation activities or real estate business.

It is clarified that use of credit card in India by a person resident outside India shall not be deemed as borrowing or lending in rupees.

An AD Bank may allow continuance of loan/ overdraft granted to a person resident in India who subsequently becomes a person resident outside India, subject to following terms and conditions:

• The AD Bank is satisfied, according to his/ its commercial judgment, about the reasons to continue the loan or overdraft;

• The period of loan or overdraft shall not exceed the period originally fixed at the time of granting the loan/ overdraft;

• So long as the borrower continues to a remain a person resident outside India, the repayment shall be made either by inward remittance from outside India through normal banking channels or from the funds held in NRE/ FCNR/ NRNR/ NRO/ NRSR a/c of the borrower.

In case INR loan was granted by a person resident in India to another person resident in India and the lender subsequently becomes a non-resident, the repayment of loan by the resident borrower should be made by credit to the NRO or NRSR a/c of the lender maintained with a bank in India, at the option of the lender.

The tax liability on capital gains on sale of shares and securities shall be as under

* Plus surcharge (if applicable) plus education cess @ 2% plus Secondary Higher Education Cess @ 2%

Since the period of holding of the shares is more than 12 months, the capital gain shall be treated as long term capital asset. As per the provisions of the Act, LTCG on sale of shares, listed on recognized stock exchange and on which STT is paid is exempt

Yes, the LTCG on sale of shares on which STT is not paid at the time of acquisition of shares is taxable, subject to certain exceptions.

1. The person is required to intimate his Bankers about the change in the status as “Non Resident” under FEMA.

2. He may opt for giving a general / specific POA to a close relative to do things on his behalf during his stay abroad.

3. Intimate the companies, firms where he is a shareholder, partner, and deposit holder about the change in his status as non-resident under FEMA.

4. Retire from the firm / company if it is carrying on business of real estate, nidhi, lottery, betting, gambling, manufacturing of cigars, etc., trading in TDRs etc.

5. Planning the date and month of departure out of India so as ensure minimum tax liability in the year of departure (i.e. April to March).

6. Taxability of Income earned in and outside India in the year of departure and in the subsequent period.

7. Application of Double Taxation Avoidance Treaty, where applicable.

8. Advice / information on various aspects of Tax Laws / FEMA, 1999 in respect of holding of assets in and outside India / earning income in and outside India and its taxability.

9. When filing return of income in India, he should state his residential status as ‘NRI’ instead of resident.

An NRI on his leaving from India has to designate his resident accounts in India. Resident savings / current / fixed deposit accounts are to be designated to NRO savings / current / fixed deposit accounts respectively. He shall be eligible to open and maintain a NRE Bank account and FCNR Deposit account only after becoming an NRI.

Yes, a Recent Immigrant can hold the shares and securities in Indian Companies. However, he/ she will required to inform all the companies, fund houses, depository participants, etc. as to change of his residential status from resident to non-resident. Also, the Recent Immigrant is permitted to make further investments in stock market through route of Portfolio Investment Schemes only.

A Recent Immigrant shall have to determine his residential status for the year. In case he is a ROR, his income outside India shall be taxable. However, in case he is a non-resident for the financial year, income outside India shall be outside the scope of taxability and the income earned outside India shall not be taxable in India. He can avail the benefit of DTAA entered into between India and his home country to avoid double taxation.

RBI has not prescribed clear guidelines on continuation as a partner. But, person leaving India can continue as a Partner of his firm in India in general. However, it shall be ensured that the firm is not engaged in any agricultural / plantation activity or real estate business. Further, he shall obtain required permission from RBI in cases where the activities are prohibited / restricted to be undertaken by NRIs.

Yes, a person who had bought the residential / commercial property / agricultural land/ plantation property/ farm house in India when he was a resident can continue to hold the immovable property without the approval of RBI even after becoming an NRI. The sale proceeds may be credited to NRO a/c of the NRI.

Yes, from the balance in the NRO a/c, NRI/PIO may remit up to USD 1 Million, per FY, subject to the satisfaction of AD Bank and payment of applicable taxes.

For more information, see Repatriation of Funds.

PPF a/c can be opened only by an Indian resident. However, if an Indian resident after opening a PPF a/c becomes a NR, he can still continue to contribute to the account. The contribution can be made from either a NRO or a NRE a/c. On completion of the period of 15 years, if he is a NRI he will be unable to extend the PPF a/c and will need to mandatorily close the account and withdraw the sum.

The person can continue to contribute to the PPF a/c and get the benefit of deduction under section 80C of the Act out of his Indian income. The interest on PPF a/c would continue to be exempt under the Act.

The person can use funds in the NRE a/c or NRO a/c to make investments in the PPF a/c. As per the PPF rules an individual is required to at least invest Rs.500/- per FY in the PPF a/c. In case he fails to make the minimum investment in a year or years his account will be considered dormant. Subsequently, when the he wants to revive the account, he will have to invest Rs.500/- for each year for which he did not make investment plus a penalty.

A NRI is not eligible for extension on the PPF a/c. Hence, at the time of maturity the NRI is required to withdraw the balance from the PPF a/c. There is no tax implication in India on maturity of PPF a/c. The amount in the PPF a/c can be transferred to the NRO a/c.

In such cases the account will be considered ‘extended without contribution’ in blocks of 5 years for an unlimited period of time. Extended without contribution means that the NRI will not have to make the minimum yearly investment of Rs.500/-. His account will continue to earn interest at the prevailing rate. There are instances where banks allow NRIs to extend the PPF account only for 2 blocks of 5 years or 3 blocks of 5 years. But according to the rule book the extension can be made for an unlimited period of time.

Under the general permission by RBI, NRIs and PIOs are permitted to purchase immovable property in India. The general permission, however, covers only purchase of residential and commercial property. NRIs and PIOs are not permitted to purchase agricultural land / plantation property / farm house in India.

PIO who has purchased residential / commercial property under general permission is not required to file any documents with the RBI.

There are no restrictions on the number of residential / commercial properties that can be purchased. However, NRI / PIO can repatriate sales proceeds of only 2 residential properties outside India.

No. A foreign national of non-Indian origin, resident outside India cannot purchase any immovable property in India. But, he may take residential accommodation on lease provided the period of lease does not exceed 5 years. In such cases, there is no requirement of taking any permission of or reporting to RBI. Further, he is not permitted to be a second holder to immovable property purchased by NRI / PIO.

Yes, but the person concerned would have to obtain the approvals, and fulfill the requirements if any, prescribed by other authorities, such as the concerned State Government, etc.

However, a foreign national resident in India who is a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, Bhutan, Macau and Hong Kong would require prior approval of the RBI. Such requests are considered by RBI in consultation with the Government of India.

Yes, NRIs and PIOs can freely acquire immovable property (residential and commercial properties) by way of gift either from a person resident in India, a NRI or a PIO. However they are not permitted to acquire an agricultural land / plantation property / farm house in India by way of gift.

A foreign national of Non-Indian origin resident outside India cannot acquire any immovable property in India by way of gift.

Yes, a person resident outside India i.e.

• A NRI

• A PIO and

• A foreign national of non-Indian origin can inherit and hold immovable property in India from a person who was resident in India. However, a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan should seek specific approval of RBI.

Yes, he is permitted to inherit agricultural land property from his father who was also a Non-resident provided the father had acquired the property in accordance with the Foreign Exchange laws in force.

The PIO may transfer agricultural land/ farm house/ plantation property in India, by way of gift or sale to a person resident in India, who is a citizen of India.

A foreign company which has established a Branch office or Project office in India can acquire any immovable property in India, which is necessary for or incidental to carrying on such activity, subject to certain conditions. A declaration is required to be submitted to RBI, in the prescribed Form.

However, if the foreign company has established a liaison office in India, it cannot acquire immovable property. They can acquire property by way of lease not exceeding 5 years.

Further, acquisition of immovable property by entities incorporated in Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Hong Kong, Macau, Nepal and Bhutan who have set up Branch Offices or other place of business in India would require prior approval of RBI.

Payment can be made by NRI / PIO only out of funds remitted to India through normal banking channels or funds held in NRE / FCNR / NRO a/c maintained in India.

Yes, NRI/ PIO are permitted to obtain housing loans subject to conditions listed below:

• The quantum of loans, margin money and the period of repayment shall be at par with those applicable to housing finance provided to a person resident in India;

• The loan amount shall not be credited to NRE/ FCNR/ NRNR a/c of the borrower;

• The loan shall be fully secured by equitable mortgage of the property proposed to be acquired, and if necessary, also by lien on the borrower’s other asset in India;

• The installment of loan, interest and other charges, if any, shall be paid by remittances from outside India or out of funds in NRE/ FCNR/NRNR/NRO/NRSR a/c of the borrower in India;

• The rate of interest on the loan shall be as per directions by the RBI and/or NHB.

Housing loan can be repaid:

• by way of inward remittance through normal banking channel; or

• by debit to the NRE / FCNR / NRO a/c of the NRI / PIO; or

• out of rental income from such property; or

• by the borrower's relatives, through their a/c in India by crediting the borrower's loan a/c.

Yes, subject to certain terms and conditions.

He may sell agricultural land to a person resident in India.

Yes, he is eligible to sell an agricultural land, even if the same was purchased by him while he was a Resident.

A NRI / PIO may gift residential / commercial property to a person resident in India, a NRI or a PIO. Foreign national of non-Indian origin requires prior approval of RBI for gifting the residential / commercial property.

Gifting of agricultural land / a plantation property / a farm house situated in India:

A NRI / PIO can gift the above only to a person resident in India who is a citizen of India. A foreign national would require prior approval of the RBI.

NRI/ PIO can mortgage to:

• An AD/ housing finance institution in India- without the approval of RBI.

• A party abroad- with prior approval of RBI.

• A foreign national of non-Indian origin can mortgage only with prior approval of RBI

• A foreign company which has established a Branch Office or other place of business in accordance with FERA/ FEMA regulations has general permission to mortgage the property with an authorized dealer in India.

Yes, he may repatriate the sale proceeds of immovable property. The amount to be freely repatriated should not exceed the amount paid for acquisition of residential / commercial property:

• In foreign exchange received through normal banking channel or by debit to FCNR a/c; or

• The foreign currency equivalent, as on the date of payment, of the amount paid by NRE a/c.

Also, in case of residential property, the repatriation of sale proceeds is restricted to not more than 2 such properties.

The sale proceeds of residential/ commercial property in India acquired by way of debit to NRO a/c cannot be freely repatriated and should be credited to NRO a/c only. Amount can be transferred from NRO a/c to NRE a/c/ overseas a/c subject to the limit of USD 1 million per FY.

There is no lock in-period applicable for sale of such properties.

The sale proceeds of immovable property acquired by NRI by way of gift should be credited to NRO a/c only. From the balance in the NRO a/c, NRI/PIO may remit up to USD 1 million, per FY, subject to the satisfaction of the Bank and payment of applicable taxes.

Yes, general permission is available to the NRI/PIO to repatriate the sale proceeds of the immovable property inherited from a person resident in India. The amount of repatriation is restricted to USD 1 million per FY.

In case of a foreign national, sale proceeds can be repatriated in similar manner if the property is inherited from a person resident outside India with the prior approval of RBI.

Citizen of Pakistan, Bangladesh, Sri Lanka, China, Afghanistan and Iran are required to obtain prior approval of RBI. Repatriation of sale proceeds in foreign exchange to Nepal and Bhutan is not permissible.

Yes, but only with a prior approval from RBI.

Yes, NRI/PIO can rent the property without RBI approval. The rent received can be credited to NRO / NRE a/c or remitted abroad.

Yes, they may continue to hold the immovable property under holding license obtained from RBI. However, they can transfer the property only with the prior approval of RBI.

Income from long-term capital gains on transfer of equity share in a company or a unit of equity oriented fund where such transaction executed on a Recognized Stock Exchange and is chargeable to Securities Transaction Tax (STT).

From April 1, 2018, if the listed equity shares were purchased on or after October 1, 2004 and STT was not paid on purchase of such shares, long-term capital gains on sale of listed equity shares shall be taxable subject to certain exceptions.

No, only interest income earned on deposits in NRE a/c are exempt from tax. Accordingly, income on any other investments credited to NRE a/c, unless specifically exempted under the Act, would be taxable in the hands of the NRI.

A Returning Indian may hold, own, transfer or invest in foreign currency, foreign security or any immovable property situated outside India if such assets were acquired, held or owned by him when he was a non-resident or were inherited from a non-resident person.

• Non-Resident Ordinary (NRO) a/c : To be re-designated to Resident a/c

• Foreign Currency Non-Resident (FCNR) a/c : Permissible to hold up to maturity and then to be converted into Rupee Account or Resident Foreign Currency (RFC) a/c*

• Non-Resident External (NRE) a/c : To be re-designated to Resident a/c or balance can be transferred to RFC a/c*

• Shares & Securities: Returning India is required to inform the Depository about change of his/her residential status from non-resident to resident

*RFC a/c - Returning Indians, on becoming residents are free to open and maintain such accounts with Indian banks. The funds held in RFC a/c can be fully repatriated and also denominated in forex. Funds in RFC a/cs can be withdrawn freely for local payments in rupees.

Once they return to India for good they ought to inform the following persons about the change in their residential status:

• All bankers with whom they hold banking accounts and get it redesignated,

• Depository participant with whom they hold DEMAT accounts,

• Companies where NRIs are Shareholders / Debenture holders and firms where they are partners.

A Returning Indian is not required to report about his change in residential status to RBI. However, he is required to mention his revised status while filling his return of income.

Further, a person who is Resident as per Act is required to report his Overseas Assets in his return of income to be filed in India annually. However, he is not required to report about his overseas assets to RBI.

• The tax liability of a person returning to India would depend on the Residential Status of a person as per the Act.

• Under the Act, income earned outside India is liable to tax in India only if the person is ROR.

• A returning Indian who has been a NR as per the Act for 9 years or more or whose stay in India was less than 729 days in preceding 7 years, then generally for 2 successive years he may be considered as a RNOR.

• Interest paid by schedule banks to NRI or to a RNOR on RFC deposits is exempt from tax under the Act. The exemption, in respect of RFC account, continues till such time as the account holder continues to be a RNOR.

• Pension from NRI’s former employer after return to India may be liable to tax in India subject to provisions of the Double Taxation Avoidance Agreement between India and the country from which the NRI is receiving such amount (and was resident in).

A Returning Indian should try to come back on or after February 1 (or February 2 in case of a leap year) of a FY in order to ensure NR status in the year of return.

Returning Indians, i.e. those Indians, who were non-residents earlier, and are returning now for permanent stay, are permitted to open, hold and maintain with an Authorized Dealer in India a RFC a/c to keep their foreign currency assets. Assets held outside India at the time of return can be credited to such accounts. The funds in RFC a/c are free from all restrictions regarding utilization of foreign currency balances including any restriction on investment outside India. The facility is also available to residents provided foreign exchange to be credited to such account is received out of certain specified type of funds/accounts.It shall be noted that returning Indians are required to re-designate their NRE / FCNR a/c to Resident / RFC a/c immediately on their return to India.

Balance in RFC a/c can be utilized without any restrictions for remittance and / or investment abroad. It can also be utilized for maintenance of dependents or any other personal purposes outside India.

Interest on RFC a/c will be exempt from tax so long as returning Indian’s residential status under the Act is determined as “Non-Resident” or “RNOR”.

RBI permission is not required.

The benefit of concessional tax treatment under Chapter XIIA may continue even after NRI becomes a resident subject to conditions specified in the Act.

Whenever a NRIs actual tax liability as per the provisions of the Act is lower than the TDS, it is certainly beneficial for him to apply for a TEC. Few instances are mentioned below:

*Plus surcharge (if applicable) plus education cess @ 2% plus Secondary Higher Education Cess @ 2%

The Assessing Officer generally issues a TEC within 30-45 working days from the date of application by the Assessee.

Normally the TEC is valid for the period for which such TEC is obtained. The Assessee has to re-apply for the TEC on the expiry of such period. Further, at the time of issuing the TEC Order, the Income Tax Authorities clearly mention the validity of the Certificate.

In most cases, the NRI has to compulsorily file his Return of Income in India within the prescribed due dates for the FY in which the TEC is obtained.

Yes. Foreign tourists of non- Indian origin during their short visit to India can open a NRO a/c (Current / Savings) with any Bank dealing in foreign exchange. Such a/c can be opened up to a maximum period of 6 months.

Funds remitted from outside India through banking channel or those obtained by sale of foreign exchange brought by the tourists to India can be credited to the NRO a/c.

Yes. Tourists can freely make local payments through the NRO a/c.

AD banks have been allowed to convert the balance in the a/c for payment to the a/c holder at the time of departure from India into foreign currency, provided the a/c has been maintained for a period not exceeding six months and the a/c has not been credited with any local funds, other than interest accrued thereon.

Yes. Foreign nationals employed in India holding valid visas can open and maintain a resident Rupee a/c in India subject to conditions.

Yes, AD Banks can remit proceeds of resident a/c opened by a foreign national resident in India. But AD Banks should ensure that the funds to be repatriated outside India were either received from abroad or they are repatriable in nature or permissible by RBI.

The foreign nationals employed in India holding valid visas are eligible to maintain resident a/c with an AD Bank in India. In order to facilitate such foreign nationals to collect their pending dues in India, AD Banks may, permit foreign nationals to re-designate their resident a/c maintained in India as NRO a/c on leaving the country after their employment to enable them to receive their pending bonafide dues, subject to conditions.

Any person resident outside India, not being a citizen of Pakistan or Bangladesh and also not a traveler coming from and going to Pakistan and Bangladesh, and visiting India may bring into India currency notes of Government of India and RBI notes up to an amount not exceeding Rs. 25,000/- while entering only through an airport.

A person coming into India from abroad can bring with him foreign exchange without any limit. However, if the aggregate value of the foreign exchange in the form of currency notes, bank notes or travellers cheques brought in exceeds USD 10,000/- or its equivalent and/ or the value of foreign currency alone exceeds USD 5,000/- or its equivalent, it should be declared to the Customs Authorities at the Airport in the CDF form, on arrival in India.

All types of income (including Dividend, Interest, Rent, distribution from any type of deposit, Sale proceeds of Mutual Funds, Shares, Immovable property, profits of business as partner/ proprietor) are eligible for repatriation (net of Income Tax).

The existing regulations permit NRIs to remit up to USD 1 million per FY for any bonafide purpose out of the balances in their NRO a/c.

The current income i.e. interest income, rental income, etc. can be freely repatriated i.e. without utilizing the limit of USD 1 million.

Form 15CB is a certificate issued by a Chartered Accountant. A Chartered Accountant shall verify that due taxes have been paid on the amount intended to be repatriated and shall subsequently issue Form 15CB.

On the basis of this certificate, Form 15CA is required to be filled online on the income tax e-filing site (https://incometaxindiaefiling.gov.in/). NRI is required to register herself on the income tax website for the said purpose.

The filled Form 15CA generated from the site shall be printed and signed by NRI and submitted along with Form 15CB at the branch from where the remittance is being made. Alternatively, Form 15CA can be electronically signed through Digital Signature Certificate (DSC) of the remitter.

The aforesaid transaction is tabulated below for easy reference

NRE a/c balances are freely repatriable. There is no limit specified for outward remittances from such a/cs.

NRI will have to approach his AD Bank where he holds his NRE a/c to make an outward remittance.

Mandate holder in the NRE a/c can initiate an outward remittance; however, it shall be ensured that the beneficiary of the remittance is the a/c holder.

Yes. Foreign tourists of non- Indian origin during their short visit to India can open a NRO a/c (Current / Savings) with any Bank dealing in foreign exchange. Such a/c can be opened up to a maximum period of 6 months.

Funds remitted from outside India through banking channel or those obtained by sale of foreign exchange brought by the tourists to India can be credited to the NRO a/c.

Yes. Tourists can freely make local payments through the NRO a/c.

AD banks have been allowed to convert the balance in the a/c for payment to the a/c holder at the time of departure from India into foreign currency, provided the a/c has been maintained for a period not exceeding six months and the a/c has not been credited with any local funds, other than interest accrued thereon.

Yes. Foreign nationals employed in India holding valid visas can open and maintain a resident Rupee a/c in India subject to conditions.

Yes, AD Banks can remit proceeds of resident a/c opened by a foreign national resident in India. But AD Banks should ensure that the funds to be repatriated outside India were either received from abroad or they are repatriable in nature or permissible by RBI.

The foreign nationals employed in India holding valid visas are eligible to maintain resident a/c with an AD Bank in India. In order to facilitate such foreign nationals to collect their pending dues in India, AD Banks may, permit foreign nationals to re-designate their resident a/c maintained in India as NRO a/c on leaving the country after their employment to enable them to receive their pending bonafide dues, subject to conditions.

Any person resident outside India, not being a citizen of Pakistan or Bangladesh and also not a traveler coming from and going to Pakistan and Bangladesh, and visiting India may bring into India currency notes of Government of India and RBI notes up to an amount not exceeding Rs. 25,000/- while entering only through an airport.

A person coming into India from abroad can bring with him foreign exchange without any limit. However, if the aggregate value of the foreign exchange in the form of currency notes, bank notes or travellers cheques brought in exceeds USD 10,000/- or its equivalent and/ or the value of foreign currency alone exceeds USD 5,000/- or its equivalent, it should be declared to the Customs Authorities at the Airport in the CDF form, on arrival in India.

No, currently there is no Inheritance / Estate tax applicable in India. However, an NRI shall also have to keep in mind the tax implications and reporting requirements of inheritance in his / her country of Residence.

Any person, whether or not resident / citizen of India is eligible to receive property by way of Inheritance. However, Transfer / Holding of the said property shall be subject to exchange control regulations in India.

Yes, an NRI is eligible to repatriate sale proceeds of an immovable property inherited from a person resident in India subject to certain conditions, payment of taxes and upto the monetary limits specified by RBI.

Yes, income earned from property acquired by way of Inheritance is taxed in India as under:

• Upto the date of death - taxed in the hands of the deceased. However, the same would be leviable and recoverable from the legal representatives of the deceased in a like manner and to the same extent as the deceased (liability restricted upto the value of property inherited).

• After the date of death - taxed in the hands of beneficiaries / executor(s) in their individual capacity.

When a person passes away without a Will, the provisions of the Succession law (as specified in the above Flowchart) shall have to be followed to distribute the deceased person's property among the legal heirs. The rules of succession will determine who the heirs of a deceased are and what would their share be in the Inheritance.

Further, an NRI may also have to obtain a Succession Certificate to substantiate that he / she is a legal heir as per the provisions of the Succession Law.

Individual may avail of exchange facility in excess of USD 250,000/- as prescribed under LRS in connection with Emigration, medical treatment abroad and studies abroad, subject to other prescribed conditions/ restrictions.

Persons other than RI can make remittances for:

• Donations for educational institutions;

• Commissions to agents abroad for sale of residential flats/commercial plots in India;

• Remittances for consultancy services and

• Remittances for reimbursement of pre-incorporation expenses within the limit and conditions laid down therein.

Such persons shall submit to the AD Bank a declaration to the effect that the limits and conditions relating to the remittances have been complied with.

Yes, LRS is in addition to the use of International Credit Card. There is no monetary ceiling fixed by RBI for remittances by use of International Credit Card towards meeting expenses while such person is on a visit outside India. Use of International Credit Card for payment in foreign exchange in Nepal and Bhutan is not permitted.

There is no restriction on the frequency. However, the total amount of foreign exchange purchased from or remitted through, all sources in India under the LRS scheme during the current FY should be within the LRS limit currently at USD 250,000/-.

RIs are eligible to avail benefit of LRS. The person must be a person resident in India as per FEMA. Once an individual is a resident under FEMA, he is eligible to avail benefits of LRS, whether or not he is an Indian citizen. Persons other than RIs are eligible to avail benefits of LRS but only for few transactions subject to limits and conditions as specified in FEMA.

Yes, LRS facility is available to all RIs including minors. In case of remitter being a minor, the Form A2 must be countersigned by the minor’s natural guardian.

Since he is carrying on business in India, he shall be treated as a person resident in India under FEMA. Hence, he would be eligible for availing the LRS even though he is not an Indian citizen.

Since he has left India for employment purpose, hence he shall be treated as a person resident outside India under FEMA. He would not be eligible for availing LRS even though he is an Indian citizen.

Remittances under LRS can be consolidated in respect of family members (including minors) subject to the individual family members complying with the terms and conditions of the Scheme. However, clubbing is not permitted by other family members for capital account transactions such as opening a bank a/c/ investment/ purchase of property, if they are not the co-owners/ co-partners of the overseas bank a/c, investment/ property.

It is mandatory to have PAN card to make remittances under LRS for capital account transactions. However, PAN card need not be required for remittances made towards permissible current account transactions up to USD 25,000/-.

All other transactions which are otherwise not permissible under FEMA and those in the nature of remittance for margins or margin calls to overseas exchanges / overseas counterparty are not allowed under the Scheme.

The RI investors can retain and re-invest the income earned on investments made under LRS. At present the RIs are not required to repatriate the funds or income generated out of the investments made abroad under LRS.

Yes, a RI can give loan abroad by using LRS as giving of loans is a permissible capital account transaction.

Yes.

Yes, since the RI has partly utilized the limit of USD 250,000/-, he can gift an additional amount of up to USD 1,00,000/- before 31st March 2017. No further remittances shall be permitted in FY 2016-17 since the LRS limit has been utilised.

No. she cannot remit additional amount of USD 50,000/- to his daughter (a close relative) in accordance with the regulations governing current account transactions. Remittance for maintenance of close relative abroad has also been subsumed under the LRS limit. Hence, the limit of USD 250,000/- shall be applicable in case of gift to close relatives too.

• Approach the Bank and notify them that you would like to engage in an outward remittance via demand draft, under LRS.

• Application cum declaration for purchase of foreign exchange under LRS of USD 250,000.

• Form A2 will be presented to you in addition to the demand draft documentation. Form A2 is a declaration form. Under the form, you are required to attest that you have not breached the limit of USD 250,000 per FY and state the purpose of the remittance. Form 15CA/CB is not mandatory under LRS transactions.

• Apart from above, request for release of foreign exchange is to be given to AD Bank in case of transfer of funds overseas. (Application to Release forex)

• Other AD Bank specific requirements.

Funds can be remitted to below mentioned relatives as defined in the Companies Act,:

• Members of your Hindu undivided family; or

• Resident individual’s spouse

• Resident is related to the beneficiary in any of the manners indicated below:

  • Father (including step-father)

  • Mother (including step-mother)

  • Son (including step-son)

  • Son's wife

  • Daughter

  • Daughter's husband

  • Brother (including step-brother)

  • Sister (including step-sister)

A person shall be deemed to be of Indian origin if he, or either of his parents or any of his grand-parents, was born in undivided India.

Yes, while calculating the number of days of stay in India, date of arrival and date of departure from India shall be treated as one day of stay in India each.

In the following cases only the condition of stay in India for less than 182 days is applicable for Residential Status to be NR:

1. In case of a NR, who is citizen of India or Person of Indian Origin, who is on visit to India, or;

2. In case of a person, who is citizen of India, and leaves India for employment outside India or as a member of the crew of an Indian ship.

Accordingly, he shall be a NR for FY 2018-19 under the provisions of the Income-tax Act, as his stay in India is less than 182 days for the said FY.

She shall be a resident for FY 2017-18, as her stay in India for FY 2017-18 is more than 182 days.

However, she shall not be ROR despite her stay for the past seven years exceeding 729 days, as she has been a NR for all the past ten years by virtue of her stay in India being less than 182 days for the past ten years. Accordingly, her residential status for FY 2017-18 shall be that of a RNOR.

Mr. Rohit will be an NR in India for FY 2018-19. Although he has stayed in India for more than 60 days, he being a Person of Indian Origin leaving India for the purpose of employment, shall be considered to be a resident only if he has stayed in India for a period exceeding 182 days.

His stay in India for FY 2016-17 will be 136 days (April 1, 2016 to August 1, 2016 - 123 days and January 20, 2017 to February 1, 2017 - 13 days). The day of leaving India and returning to India both will be calculated as ‘stay in India’ for the purposes of counting number of days of stay in India.

As it is his first year of leaving India for the purposes of employment, being an Indian citizen, he will become a resident in India only if his stay in India for the concerned FY is 182 days or more. Hence, he should leave India on or before September 28 to have the status of NR for that FY.

If he fails to do so, by virtue of taxation of global income for residents, his foreign sourced income may also become taxable in India and hence he needs to plan his departure to avoid such a situation.

As a NR, she should try to come back on or after February 1 (or February 2 in case of a leap year). However, if her stay in India in prior 4 previous years does not exceed 365 days, then she may return after October 2 (or October 3 in case of a leap year). In both the cases, she will continue to remain NR for that FY ensuring her income earned outside India shall not be taxable in India for that FY.

OCB means a company, partnership firm, society and other corporate body owned directly or indirectly to the extent of at least sixty per cent by NRIs and includes overseas trust in which not less than sixty per cent beneficial interest is held by NRIs directly or indirectly but irrevocably.

Yes. It is true. It is observed that when students leave India for taking up a course of specified duration, such stay outside India exceeds the period officially intended. While taking up studies, or further advance courses, students may have to take up job or seek scholarship to supplement income to meet their financial requirements abroad. As students have to earn and learn, their stay for educational purposes gets prolonged than what is intended when leaving India. It is clear that on both counts viz. their stay outside India for more than 182 days in the preceding FY and their intention to stay outside India for an uncertain period when they go abroad for their studies; they can be treated as NRIs.

The above provisions shall not apply to any sum of money or value of property received:

• from any relative (refer FAQ below for meaning of relative); or

• on the occasion of the marriage of the individual; or

• under a Will or by way of inheritance; or

• in contemplation of death of the payer or donor, as the case may be; or

• from any local authority as specified in the Act; or

• from any fund or foundation or university or other educational institution or hospital or other medical institution or any trust or institution specified in the Act

In case of Individual:

• spouse of the individual;

• brother or sister of the individual;

• brother or sister of the spouse of the individual;

• brother or sister of either of the parents of the individual;

• any lineal ascendant or descendant of the individual;

• any lineal ascendant or descendant of the spouse of the individual;

• spouse of the person referred to in clauses (ii) to (vi);]

In case of a HUF:

• Any Member thereof

No. Since the Gift is received from his linear ascendant, that is, a relative, there will be no tax implication in the hands of the NRI on receipt of such Gift from his grandfather.