savvyNRI.com
SavvyNRI is an essential resource for NRIs (Non-Resident Indians) and OCIs (Overseas Citizens of India) to help make informed decisions in areas such as:
- Investments: Guidance on opportunities and strategies
- Regulations: Offering insights on relevant laws and regulations.
- Taxation: Assisting with understanding and managing tax obligations
- Financial Planning: Enabling smart financial planning and management
SavvyNRI delivers valuable information through comprehensive overviews, detailed resources via links and blogs, and actionable options that empower users to make savvy decisions.
INVESTMENTS
REAL ESTATE
Real Estate is popular with NRIs. Reforms include:
- Real Estate Regulation Act (RERA) mandates that developers register their projects and provide regular updates, ensuring transparency and reducing project delays.
- Goods & Services Tax (GST) streamlines the tax structure to purchase of new properties.
- Credit Rating Information Services of India Ltd.(CRISL), ICRA Ltd.(ICRA), and Credit Analysis & Research Ltd.(CARE) play important role.
NRI’s typically buy luxury apartments for their premium features, high resale value, and better rental yield, but renting them will need a property manager.
STOCKS, FUNDS, BONDS
NRIs can invest in stocks and mutual funds under:
- Portfolio Investment scheme (PIS) of the RBI and transact through a stock broker.
- Stock exchange agencies include: National Stock Exchange (NSE), and Bombay Stock Exchange (BSE).
- Commodity trading can be done via Multi Commodity Exchange (MCX) and many other firms.
- Bank Accounts NRE (Non-Resident External) Account and NRO (Non-Resident Ordinary) Account are popular with NRIs.
- Other investment options include bonds, CD’s and National Pension System (NPS).
- Startup Investments is a popular option for NRI’s as individual or corportarate. Knowing the Foreign Direct Investment (FDI) policy and other regulations in India helps.
INVESTMENT BLOG
LINK
- Key Investments for NRIs
- Investments in NPS
- Bonds, CDs
- Property Transactions by NRI
- NRE, NRO, FCNR bank accounts
- Stocks, Mutual Funds
- Real Estate Trends
- Property Managers in India
- Property Developers / Builders in India
- Investing into India by Companies
- Startup Funding and Investments
- Derivatives Trading by NRI
- Commodities Trading by NRI
- Investing in India, how to steps
- Portfolio Investment Scheme (PIS)
- Investing in ULIP
- Investing in PPF
REGULATIONS
BUSINESS LAW
Regulations are key aspects to consider: They include:
- Foreign Exchange Management Act(FEMA), which comes within the ambit of the Reserve Bank of India (RBI),
- Securities & Exchange Board of India (SEBI)
- Other regulations such as the PMLA need awareness
INVESTMENT POLICIES
NRI investments are governed by the following:
- Foreign Direct Investment (FDI) policy that specifies level of foreign investments in each sector.
- Specific sectors have separate regulations such as RERA in Real estate. And as OCI in India,
- you should be aware of LRS available for remitting funds overseas.
REGULATIONS BLOG
LINKS
- Foreign Exchange Regulations: FEMA
- Regulations: PMLA
- Financial Regulations: SEBI
- Policy for Investments: FDI
- Liberalized Remittance Scheme (LRS)
- Real Estate Regulation Act (RERA)
- Reserve Bank of India (RBI)
- Income Tax Act and Sections relevant to NRI
- Companies Act and Sections relevant to NRI
- Good & Services Act (GST)
TAXATION
TAX ON OCI (US CITIZEN) LIVING IN INDIA
- US citizens (PIO, OCI) and green card holders are subject to U.S. income tax on worldwide income, regardless of where they live.
- If the foreign citizen is a Resident in India, due to days of stay in India, the person needs to file Indian tax returns on worldwide income. Hence for example the OCI filing taxes in India and USA and on Worldw income both cases. Double Taxation Relief available per DTAA.
- FBAR Reporting for holding financial assets overseas above a limit, by USA Citizens and Green Card Holders, is required.
- In India taxation is covered by Central Board of Direct Taxes(CBDT) which comes under the Ministry of Finance.
TAX ON NRI & PIO LIVING ABROAD
- NRI and US citizens living outside India but having Income in India need to file returns in India and declare the Indian income, even if NRI. If the stay in India is long enough to make them Indian Residents then global income gets taxed in Indian tax returns.
- Payments made to non-residents are subject to tax deduction at source (TDS) at high rates. The NRI has to claim credit for the TDS after filing Indian tax returns.
- Recently Income Tax returns ask more details from NRI, such as days stayed in India and local identification number.
- Calculator for US taxes use the Income Tax Calculator
TAXATION BLOG
LINKS
- Filing Tax Returns in India by NRI
- Tax Deducted at Source (TDS) for NRI
- Taxation of US Citizens and Green Cards living in India
- Tax Rates in India: Corporate & Individual
- Gifts to, and from NRI: Taxability in India
- Rental Income: Differences USA and India
- Capital Gain on Property: India, USA compared
- Taxability of IRA accounts in USA & India
- US Tax Returns Forms
- FATCA, FBAR, 8938 Reporting to USA
- NRI taxation changes from FY 2020-21
- Business Structuring in USA
- Inherited Property, Taxation USA, India
- Gift and Estate Taxes in USA
- Double Taxation Credits in USA
- Tax Residency Certificate for NRIs
- Tax Saving Tips for NRIs
- NRI – Tax on Investments and Capital Gains
- NRI – Exemptions from Capital Gain in some cases
- NRI – Incomes exempt from Tax
- Tax of NRI being Foreign Company
- NRI- Special Rates of Tax in some cases
- Tax Agreements – India with USA
- US Taxes GILTI
- Determine NRI Taxes – Detail
- UK Taxes Overview
FINANCIAL
OCI RETURNS TO INDIA
- When OCI returns to India there are taxation, banking, regulations and compliance changes.
- OCI loses NRI status and becomes Indian Resident if stays in India for more than 182 days in Financial year. This means global income is now taxed. Foreign assets need to be disclosed in Indian tax returns. This impact is the biggest negative of returning.
- Bank accounts have to be converted to local bank accounts. FATCA apply to holding of bank accounts.
BECAME A NRI, CHANGES
- On becoming an NRI, some things change and this includes taxability, banking and other regulations and the extend of investment options available back in India.
- On Taxation, the scope of income taxable in India reduces to India source income only. However Tax Deduction at Source (TDS) rules apply at higher rates.
- Bank accounts need to be converted to NRO/NRE accounts and transfer of money is regulated per FEMA and RBI rules.
- Aadhaar card and PAN card are identification tools and are available for NRIs, including OCI.
- Holding any inherited property is allowed but there are restrictions on sale of agriculture land, and farmhouse.
- NRI fund transfer is done via NRO/ NRE bank accounts.
- EFP International Worker (IW) rules will apply to OCI.
Contact Us
About Us
Our team includes finance, tax and legal experts and have a strong commitment to excellence and professionalism. Our founder is qualified as MBA (IIM-A) , MS (USA), CMA (UK) and CA (India & UK) and has lived in USA for over 20 years as NRI.
For support and service offering on Taxation topics, please refer www.MYiTAXES.com and on other Financial topics. www.MYiCFO.com