NRI Services

What is advantage of transferring funds from NRO to NRE?

• 1. Interest earned on NRE funds is Tax free

• 2.There is NO TDS (tax deduction at source) on interest earned on funds lying in NRE AC

• 3.Funds lying in NRE AC is freely repatriable to your home country with minimum RBI paperwork.

What is NRO and NRE Account?

1. 1. The NRO account is mainly for depositing Indian incomes like dividends, rent or incomes through any investment or sale of property. In case of NRO account both non-resident and resident can become joint account holders.
2. 2. The NRE account is mainly for depositing income from abroad. In case of NRE account, only NRIs can become joint account holders.
•  An NRI can transfer funds from NRO to NRE account only if the amount is within USD 1 million in a financial year. The amount/limit is the maximum.
•  Transfer of funds from NRO to NRE account is subject to payment of applicable taxes. Only if the taxes are clear you can move funds
•  The source of funds in the NRO account should be transferable/ repatriable

Document Requirements for Transfer of Funds from NRO to NRE

For transfer of funds from NRO to NRE account, funds need to qualify repatriation and our FEMA experts can assist you with correct advise on the same by evaluating existing rules for this transfer. 

The process is simple but requires constant liaising with bankers and submission of prescribed certificates from Chartered Accountants to the bank to effectively transfer these funds. 

Sale of Immovable Property in India by Non Residents

Selling your property in India may not be an easy task. This will require proper advise on applicable tax, ways to minimize the same and then rules for repatriating the proceeds to your home country. Our team of experts would assist you with these and hold your hand all through the process.

The process could be highlighted as under –

1. Identify the Buyer and crystallize on the selling price. You may opt to enter an MOU/receive token deposit.
2. If the property was purchase prior to 1.4.2001, a valuation report needs to be obtained from a Government Recognized Valuer. This will be considered as cost of acquisition is such cases.
3. As a next step you should work with your tax advisor to minimize your tax outflow and look at various reinvestment options to reduce the possible tax liability.
4. If you had incurred any cost on improvement of the property, the same needs to be considered while computing capital gains tax and finalizing the computation of Capital Gains Tax.
5. Any payments to Non Residents are liable to withholding tax (TDS) as per tax law and hence a lower tax/NIL deduction certificate needs to be obtained from the tax authority by the Non Resident Seller to restrict the tax deduction only on the gains while receiving the sale consideration from the buyer.
6. Simultaneously, the agreements for sale of property can be drafted by the buyer’s lawyer and the same can be vetted by the Non Resident seller or his consultant. 
7. Once the lower tax/NIL tax deduction certificate is obtained, finalize the date of execution of the deal.
8. On the date have the sale consideration received, let the buyer pay the applicable TDS and thereafter proceed to have the agreement registered.
9. If you wish to repatriate the proceeds to your overseas account, obtain Chartered Accountants certificate that the remittance is eligible for repatriation and submit to your banker along with other relevant forms.
10. Follow up with Banker to make sure that the remittance is effected.
11. As a last step, ensure to file your tax return for the year declaring your Capital Gains and taxes thereon.

As a NRI, you are liable to file tax returns in India if you own assets in India and / or you have taxable income in India. Our experience in dealing with NRI taxation for last 5 decades and more compels us to advise NRIs to file their tax returns in India as it facilitates ease of movement of funds across border if appropriate disclosures have been made to tax authorities.

Our team of experts regularly deal with cases where as NRI you have inherited wealth, sold properties, purchased properties, have active businesses in India or simply have investments in shares / NRE deposits in India and need assistance with tax filings, advisory services to minimize taxes and at times repatriate your funds out of / in India.

Depth of our knowledge and experience in these tax matters coupled with our personalized responses has earned us satisfied, long-term clients spread across globe. Our passion to further nurture and grow more such relationships ensure that our team members respond to your mails on an 'instant mode'

Filing of Tax Return:

Preparation of Computation of Income & Return of Income in prescribed form to be filed with Income Tax Authorities. The same would be done based on the data submitted by the client.

To enable us to initiate the process, we would need copies (and not originals) of following documents –

1. Copy of Purchase Agreement.
2. Copy of Valuation report of the property as on 1st April, 2001 (in case it was purchased prior to 1st April, 2001)
3. Copy of all the expenses incurred on improvement of the property
4. Copy of MOU/draft Sale Agreement
5. Details of the Bankers in India.

You may note that the entire process takes around 4 weeks time once all the required documents are provided. Please add additional 2 week in case of PAN migration is required.

Let our experts help you plan succession of your wealth in India. With more than 5 decades of experience, our team is geared to offer you practical advise and assist you frame up a WILL.

A WILL is a binding document that identifies who should inherit your assets after your demise. Recipients generally include a spouse, children, grandchildren or a charitable organization.

For all class of assets, you have an option of ‘nominating’ entities. In case of your death, nominee can produce death certificate before the authorities and nominee will be placed as ‘owner’ in your place without any other legal formalities. Once your WILL is ‘opened’, executors can approach authorities and in case the ‘successors’ to your assets are different than the ‘nominees’, their names will be placed as ‘owners’ and nominee’s names would be removed.

You have to complete the paperwork as prescribed by each authority and this nomination is duly recorded in their records. It is a recommended practice to complete the nomination paperwork.

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