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> Miscellaneous Questions
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| Miscellaneous Questions |
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| Can NRI send gifts? |
There is no restriction
on gifts by NRIs to resident Indians in foreign exchange or
Indian rupees or in the form of assets. All sorts of gifts
from relatives (as defines under Income Tax Act) are tax-free.
All that is required is an offer by the donor and acceptance
thereof by the in black and white. To safeguard against any
hassles, the done should request the donor for a gift and
then the donor should remit the amount to the done. Alternatively,
the donor can offer the gift. In either case, it is necessary
for the done to accept the gift in writing (maybe through
a thank you note). |
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| Can NRIs invest
their funds in Government securities or Units of Unit Trust
of India(UTI)? |
Yes. NRIs are freely
permitted to invest their funds in Government securities or
Units of UTI through authorized dealers. Units can also be
purchased directly from UTI. |
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| Are any tax concessions
available to NRIs on balances/deposits held in NRE/FCNR accounts?
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Yes. Income
from interest on moneys standing to the credit of NRE/FCNR
accounts is exempt from income tax. Gifts from such accounts
to close relatives are also free of gift-tax.
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| Are similar concessions
available in respect of balances held in NRO accounts?
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No
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| What are the tax benefits
to the NRNR deposit account holders? |
They enjoy the following
tax benefits:
- Income from the deposits will be free from Indian income
tax.
- The deposit will also be exempt from gift tax for one-time
gifting (in the case of NRIs only).
- Exemption from income tax will not be available to resident
donee and those residents, who being joint holders, become
owners of the deposit as survivor of the non-resident
depositor.
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| What about tax benefits
on funds held in FCNR accounts? |
Tax exemption on interest
earned on deposits held in foreign currency is available to
non-residents and persons who are not ordinarily resident
in India as defined under Income-tax Act, 1961.
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| What is the approved method
of sending remittances into India? |
The approved method of sending
remittances into India is through normal banking channels.
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| At what rates are remittances
in foreign currencies made by NRIs converted by banks into rupees?
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Such remittances will
be converted by banks at the market rate of exchange.. |
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| Can remittances be sent
into India otherwise than through the medium of a bank in the
country of residence of the remitter? |
Yes. Exchange House in
the Gulf countries have been permitted to send remittances
into India by means of DDs, MTs and TTs drawn on banks in
India.
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| Can Exchange Houses draw
drafts in foreign currencies? |
Yes. Exchange house can
draw drafts in U.S.dollar or Pound sterling on a limited number
of branches of the drawee bank in India, if they have entered
into such an arrangement with the drawee bank. |
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| Can NRIs send drafts issued
by Exchange Houses for acquisition of residential flats in India?
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Yes. NRIs can send drafts
issued by exchange houses in favor of co-operative housing
societies/estate develops for acquisition of residential flats
in India in individual names. |
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| Can NRIs take out of India
precious stones or jewelry purchased by them during their visit
to India? |
| Yes. NRIs can take out
of India precious stones and jewelry (both
gold and non-gold) purchased by them in India, without any
limit, provided the purchase is made against payment in any
convertible foreign currency. |
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| Can assets held in India
by NRIs prior to their becoming non-resident be repatriated
outside India? |
No |
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| Can NRIs take out of India
household articles such as carpets, curios, etc. purchased out
of funds in NRO accounts during their temporary visit to India?
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Yes. RBI permits on application
such requests received from NRIs up to the value of Rs. 20,000
for such articles (other than those made of gold or silver
or those banned for export). |
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