https://www.ashutoshfinserv.com/ashutosh-nri-services/

Ashutosh NRI Services, Sterling Apts. , Near Jubilee Baug Chowk, Jawahar Road, Rajkot (2026)

28/09/2021

NRI & OCI CARDHOLDERS ARE ALLOWED TO BUY AND SELL IMMOVABLE PROPERTIES IN INDIA – RECENT SUPREME COURT DECISION NOT APPLICABLE TO THEM

◾ There have been news of restrictions being placed on Non-Resident Indians (NRI) and Overseas Citizen of India (OCI) cardholders to buy and sell immovable property in India.

◾ The news are based on the recent Supreme Court ruling of Asha John Divianathan v. Vikram Malhotra & Ors. (CIVIL APPEAL NO. 9546 OF 2010), in which the court mandated the foreign citizen from obtaining approval of the Reserve Bank of India (RBI) for transfer of property in India.

◾ The said ruling pertains to a legal matter in the years of 1977 & 1980, during which the Foreign Exchange Regulation Act (FERA), 1973 was in force for matters relating to buying & selling by foreign citizens of immovable properties in India.

◾ It must be noted that The Foreign Exchange Management Act (FEMA), 1999 has replaced the earlier law in such matters as on present date.

◾ The FEMA law clearly permits any Indian citizen and any OCI cardholder situated globally from buying & selling immovable property in India under CHAPTER IX of the Foreign Exchange Management (Non-debt Instruments) Rules, 2019.

◾ Any Indian citizen or OCI cardholder residing in any part of the world need not obtain any approval of the RBI or any other government authority for buying or selling immovable property in India.

◾ However, an Indian citizen or OCI cardholder residing outside India cannot purchase an agricultural land or farm house or plantation or enter into real estate business (real estate development and construction business is allowed)

◾ Please reach out to us in case of any further clarification.

Contact us:
Mobile:+91 72288 48181 / 70435 93388
Email: [email protected]

28/09/2021

IMPORTANCE OF AN OVERSEAS CITIZEN OF INDIA (OCI) CARD FOR AN NON-RESIDENT INDIAN (NRI)

➡️ What is an Overseas Citizen of India (OCI) Card?

🔳 Overseas Citizen of India (OCI) Card is a form of immigration status permitting a foreign citizen of Indian origin to have meaningful connection with the Republic of India indefinitely.

🔳 An NRI must register as Overseas Citizen of India Cardholder under section 7A of the Citizenship Act, 1955 to become an OCI.

➡️ Why is it important to have an OCI Card for an NRI?

1. An OCI Card enables a person multiple entry, multi-purpose life long visa to visit India.

2. It is mandatory for an NRI to have an OCI Card as per the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 to:

a. Acquire any immovable property in India as per Chapter IX of the NDI Rules, 2019.

b. Invest in shares of any Indian company or any mutual funds or other securities permitted for NRIs as per Schedule III & IV of the NDI Rules, 2019.

c. Start a business in India in form of a proprietorship or partnership firm as per Schedule IV & VI of the NDI Rules, 2019.

➡️ How to register oneself as a OCI cardholder?

🔳 Applications for OCI can only be made online at www.ociservices.gov.in.

🔳 A person making an application is required to submit a photograph, along with application fee and several identification documents to prove the eligibility criteria.

🔳 It is mandatory to make fresh application for OCI Card on issuance of new passport in certain cases.

➡️ Conclusion

🔳 Holding an OCI Card is a must to engage in any meaningful financial transactions in India.

🔳 Several NRIs are unaware of this important provision.

For further details, contact us:
Ashutosh NRI Services
Mobile: +91 72288 48181 / 70435 93388
www.ashutoshfinserv.com

28/09/2021

Tax Collected At Source (TCS) Provisions Are Not Applicable To Non-Resident Indians (NRIs)

There has been a lot of discussion in media over the Tax Collected at Source (TCS) imposed by the government from 1/10/2020.
Such TCS is NOT APPLICABLE for any Non-Residents remitting funds to and from India through their NRE bank account or through NRO bank account under the remittance of assets scheme.
However, it is applicable to residents sending funds abroad to their relatives or for making any investment abroad and such other fund transfers under the Liberalised Remittance Scheme (LRS) by resident Indians.
The TCS is not an additional tax that is imposed as the credit of it can be claimed against the final income tax liability. It is one more means of collecting Income Tax in advance by the taxpayer.
The purpose of TCS for the Income Tax Dept. is to monitor the transactions which are undertaken by the taxpayers.

For further details, contact us:
Ashutosh NRI Services
Mobile: +91 72288 48181 / 70435 93388
www.ashutoshfinserv.com

28/09/2021

Special Tax Benefit For Non-Resident Indians (NRI)

▪️ Any Long-term capital gain on sale of shares of Indian Companies, listed and unlisted or any government securities will be exempt if the sale consideration is reinvested within 6 months into shares of Indian Companies , Deposits with Indian companies (including Indian Banks) or Government Securities.

▪️ The above relief is available under section 115F of the Income Tax Act (Chapter XII-A).

▪️ The sale consideration can be invested in deposits of top class Indian companies offering an interest above 7% p.a.

▪️ The investment made to claim the deduction has to be held for 3 years.

▪️ If sale consideration is partially invested, proportionate deduction is allowable.

▪️ This provision opens an opportunity for lucrative tax planning for NRI and an attractive investment opportunity simultaneously.

For further details, contact us:
Ashutosh NRI Services
Mobile: +91 72288 48181 / 70435 93388
www.ashutoshfinserv.com

28/09/2021

Referral Partner for NRI Services

We are a one stop destination for Non-Resident Indians providing holistic services relating to Investments, Taxation & Estate planning, Legal aspects and compliances relating to foreign taxation.
We are inviting applications for persons to become our Referral Partners in promoting NRI services globally with very attractive terms.
Following are the requirements for someone to become a Referral Partner:

The person should be of Indian origin, located outside India.
The person has a basic understanding and background in the field of finance or taxation or accounting or legal services.
The person can engage part time/fulltime in the promotion of these services in a dedicated manner.
The person has relationships to roll out financial products and services to a larger section of clients beyond his immediate family.
The person has a good working knowledge about computer operations and mobile applications.
To become a Referral Partner, contact us at the earliest.

Ashutosh NRI Services
Mobile: +91 72288 48181 / 70435 93388
www.ashutoshfinserv.com

28/09/2021

FOR TAX RESIDENTS OF TANZANIA, KENYA, UGANDA, SOUTH AFRICA, SUDAN & ETHIOPIA:

NO CAPITAL GAINS TAX ON SALE OF MUTUAL FUNDS AND BONDS/DEBENTURES IN INDIA UNDER DTAA.

Under Article 13 of the DTAA (Double Taxation Avoidance Agreement) with the respective countries, capital gains on sale of Mutual Funds (equity oriented or non equity oriented), either short term or long term and also capital gains on sale of all types of bonds/debentures shall be completely tax free in India for persons who are Tax Residents of any of the above country.

The above interpretation of the DTAA has been confirmed by the following judicial decisions:

1. ITO (IT) 2(1) Mumbai vs. Shri Satish Beharilal Raheja ITA NO.4627/Mum/2009
2. The Dy. Commissioner of Income-tax (International Taxation) Kochi vs. Sri.K.E.Faizal ITA No.423/Coch/2018

It has come to our notice that several NRI based in Africa are unaware of this concession.

Kindly contact us in case of any clarification.

Ashutosh NRI services
A division of Ashutosh Financial Services Pvt. Ltd.

Contact us: +91 72288 48181 / 70435 93388
www.ashutoshfinserv.com

Disclaimer: The above facts are based on our interpretation of law. The same should not be relied or acted upon without seeking specific professional advice.

28/09/2021

FOR CANADA TAX RESIDENTS

CONCESSIONAL RATE OF TAX IN INDIA OF 15% ON INTEREST INCOMES UNDER DTAA.

Under Article 11 of the India-Canada DTAA (Double Taxation Avoidance Agreement), there is a concessional rate of 15% on interest incomes (including NRO bank account interest) in India for tax residents of Canada. The same shall also be the rate of T.D.S. (withholding tax) in India.

A person is a tax resident of Canada if he stays in Canada for more than 183 days in the calendar year (1st January to 31st December) OR on fulfillment of certain other conditions as per Canadian Law.

The above rates are inclusive of surcharges and cess which is affirmed by the following judicial decisions:

1. Deputy Director of Income-tax (IT)-1(1), Kolkata v. BOC Group Ltd.
2. R.A.K. Ceramics, UAE v. Deputy Commissioner of Income Tax, International Taxation (2), Hyderabad

It has come to our notice that several NRIs based in Canada are unaware of this concession.

Kindly contact us in case of any clarification.

Ashutosh NRI Services
(A division of Ashutosh Financial Services Pvt. Ltd.)
Contact us: +91 72288 48181 / 70435 93388
www.ashutoshfinserv.com

Disclaimer: The above facts are based on our interpretation of law. The same should not be relied or acted upon without seeking specific professional advice.

28/09/2021

For U.K. Tax Residents

CONCESSIONAL RATE OF TAX IN INDIA OF 10% ON DIVIDEND INCOMES AND 15% ON INTEREST INCOMES UNDER DTAA.

Under Article 11 and Article 12 of the India-UK DTAA (Double Taxation Avoidance Agreement), Notification No. 10/2014 [F.No.505/3/1986-FTD-I], dated 10-2-2014, w.r.e.f. 27-12-2013, there is a concessional rate of 10% on dividend income and 15% on interest income (including NRO bank account interest) respectively, in India for tax residents of U.K. The same shall also be the rate of T.D.S. (withholding tax) in India.

A person is a U.K. tax resident if he stays in U.K. for more than 183 days in the U.K. tax year (6th April to 5th April) OR if his only home was in the U.K. where he has spent at least 30 days there in the tax year along with at least 91 days in U.K.

The above rates are inclusive of surcharges and cess which is affirmed by the following judicial decisions:

Deputy Director of Income-tax (IT)-1(1), Kolkata v. BOC Group Ltd.
R.A.K. Ceramics, UAE v. Deputy Commissioner of Income Tax, International Taxation (2), Hyderabad
Kindly contact us in case of any clarification.

Ashutosh NRI services (A division of Ashutosh Financial Services Pvt. Ltd.)

Contact us: +91 72288 48181 / 70435 93388
www.ashutoshfinserv.com

Disclaimer: The above facts are based on our interpretation of law. The same should not be relied or acted upon without seeking specific professional advice.

28/09/2021

FOR U.S.A. TAX RESIDENTS

CONCESSIONAL RATE OF TAX IN INDIA OF 15% ON INTEREST INCOMES UNDER DTAA.

Under Article 11 of the India-U.S.A. DTAA (Double Taxation Avoidance Agreement), there is a concessional rate of 15% on interest incomes (including NRO bank account interest) in India for tax residents of U.S.A. The same shall also be the rate of T.D.S. (withholding tax) in India.

A person is a tax resident of U.S.A. if he stays in U.S.A. for more than 183 days in the calendar year (1st January to 31st December) OR on fulfilment of certain other conditions such as being a U.S.A. citizen or U.S.A. green card holder.

The above rates are inclusive of surcharges and cess which is affirmed by the following judicial decisions:

Deputy Director of Income-tax (IT)-1(1), Kolkata v. BOC Group Ltd.
R.A.K. Ceramics, UAE v. Deputy Commissioner of Income Tax, International Taxation (2), Hyderabad
It has come to our notice that several NRIs based in U.S.A. are unaware of this concession.

Kindly contact us in case of any clarification.

Ashutosh NRI services (A division of Ashutosh Financial Services Pvt. Ltd.)

Contact us: +91 72288 48181 / 70435 93388
www.ashutoshfinserv.com

Disclaimer: The above facts are based on our interpretation of law. The same should not be relied or acted upon without seeking specific professional advice.

28/09/2021

For Australian Tax Residents

CONCESSIONAL RATE OF TAX IN INDIA OF 15% ON DIVIDEND INCOMES AS WELL AS INTEREST INCOMES UNDER DTAA.

Under Article 10 and Article 11 of the India-Australia DTAA (Double Taxation Avoidance Agreement), there is a concessional rate of 15% on dividend income as well as interest income (including NRO bank account interest) respectively, in India for tax residents of Australia. The same shall also be the rate of T.D.S. (withholding tax) in India.

A person is a tax resident of Australia if he stays in Australia for more than 183 days in the Australian tax year (1st July to 30th June) OR on fulfillment of certain other conditions.

The above rates are inclusive of surcharges and cess which is affirmed by the following judicial decisions:

Deputy Director of Income-tax (IT)-1(1), Kolkata v. BOC Group Ltd.
R.A.K. Ceramics, UAE v. Deputy Commissioner of Income Tax, International Taxation (2), Hyderabad
Kindly contact us in case of any clarification required.

Ashutosh NRI Services (A division of Ashutosh Financial Services Pvt. Ltd.)

Contact us: +91 72288 48181 / 70435 93388
www.ashutoshfinserv.com

Disclaimer: The above facts are based on our interpretation of law. The same should not be relied or acted upon without seeking specific professional advice.

28/09/2021

For U.A.E. Tax Residents

NO CAPITAL GAINS TAX ON SALE OF MUTUAL FUNDS IN INDIA AND OTHER CONCESSIONS UNDER DTAA.
Under Article 13 of the India-UAE DTAA (Double Taxation Avoidance Agreement), capital gains on sale of Mutual Funds (equity oriented or non equity oriented), either short term or long term and also capital gains on sale of bonds shall be completely tax free in India for persons who are UAE Tax Residents (Persons who have stayed in UAE for more than 183 days in the Calendar Year).

The above interpretation of the DTAA has been confirmed by the following judicial decisions:

ITO (IT) 2(1) Mumbai vs. Shri Satish Beharilal Raheja ITA NO.4627/Mum/2009
The Dy. Commissioner of Income-tax (International Taxation) Kochi vs. Sri.K.E.Faizal ITA No.423/Coch/2018
CONCESSIONAL RATE OF TAX IN INDIA OF 10% ON DIVIDEND INCOMES AND 12.50% ON INTEREST INCOMES UNDER DTAA.
Under Article 10 and Article 11 of the India-U.A.E. DTAA (Double Taxation Avoidance Agreement), there is a concessional rate of 10% on dividend income and 12.50% on interest income (including NRO bank account interest) respectively in India for tax residents of U.A.E. (Persons who have stayed in U.A.E. for more than 183 days in the Calendar Year). The same shall also be the rate of T.D.S. (withholding tax) in India.

The above rates are inclusive of all surcharges and cess which is affirmed by the following judicial decisions:

Deputy Director of Income-tax (IT)-1(1), Kolkata v. BOC Group Ltd.
A.K. Ceramics, UAE v. Deputy Commissioner of Income Tax, International Taxation(2), Hyderabad

Kindly contact us in case of any clarification.

Ashutosh NRI services (A division of Ashutosh Financial Services Pvt. Ltd.)

Contact us: +91 72288 48181 / 70435 93388
www.ashutoshfinserv.com

Ashutosh NRI Services

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