NRI money in mutual funds rising
It's not just that Indians are only relying on India growth story; even others do, like our foreign partners so called NRI, FII, etc. As per latest data form central bank, foreigners, major chunk of investments has seen good amount of rising trend in the Indian mutual funds industry, since 2003. They hold around Rs 1,028 crore worth of units of Indian mutual funds in 2003. The figure has increased sharply to Rs 2,663 crore in 2004 and Rs 4,966 crore in 2005, as per central bank data. It is not clear which country contributed the most to the MF industry as most funds doesn’t disclosed country wise list, As a result, unspecified countries account for over 70%.
NRIs - reason to invest
The ever growing economy, with robust growth & well diversified industry, India seems to be a desired destination for NRI’s. It’s assumed that Indian external sector performance will continue to be good, thus one needs to look at the outsourcing revolutions that is taking place across the globe, in not only the services but also the manufacturing and research sectors. On the investment side, moderate rules and better and well regulated markets, with looking at investors sentiments which are drawing in capital to fund India's growth.
1. Dynamic policy by government It has been close to 2 decades since the reforms process has started, with the main push coming with the twin devaluations in 1991. During this period numerous developments have taken places that have contributed to the flexibility of the Indian economy. Key amongst these are the opening up of the Indian economy to foreign investment, strengthening of the domestic financial system, liberalization of imports, rationalization of interest and exchange rates, a more conducive environment for investing in industry, and of course, the people-intensive services sector.
This resilience is clearly reflected in the fact that average economic growth rates have moved up and India has emerged as one of the fastest growing economies in the world.
2. Priority focusing agriculture, infrastructure In recent times there has been a renewed vision on two key but long ignored segments of the Indian economy – agriculture and infrastructure. The focus on agriculture and related activities, which supports approximately 65% of the Indian population, should provide a new thrust area for economic growth.
3. The global outsourcing boom Indian had become a major hub for business process outsourcing companies, but there is much more to this outsourcing boom than is commonly understood. Fortunately, India stands to benefit from it in a great measure.
4. Well equipped & regulated capital markets The Indian stock and debt markets, including banks and mutual funds are well regulated by the Securities and Exchange Board of India and the RBI, various measures are taken to protect investors’ sentiments & interest. In terms of infrastructure the Indian institutional framework is improving rapidly, backed by a strong financial system.
NRIs - reason to invest
The ever growing economy, with robust growth & well diversified industry, India seems to be a desired destination for NRI’s. It’s assumed that Indian external sector performance will continue to be good, thus one needs to look at the outsourcing revolutions that is taking place across the globe, in not only the services but also the manufacturing and research sectors. On the investment side, moderate rules and better and well regulated markets, with looking at investors sentiments which are drawing in capital to fund India's growth.
1. Dynamic policy by government It has been close to 2 decades since the reforms process has started, with the main push coming with the twin devaluations in 1991. During this period numerous developments have taken places that have contributed to the flexibility of the Indian economy. Key amongst these are the opening up of the Indian economy to foreign investment, strengthening of the domestic financial system, liberalization of imports, rationalization of interest and exchange rates, a more conducive environment for investing in industry, and of course, the people-intensive services sector.
This resilience is clearly reflected in the fact that average economic growth rates have moved up and India has emerged as one of the fastest growing economies in the world.
2. Priority focusing agriculture, infrastructure In recent times there has been a renewed vision on two key but long ignored segments of the Indian economy – agriculture and infrastructure. The focus on agriculture and related activities, which supports approximately 65% of the Indian population, should provide a new thrust area for economic growth.
3. The global outsourcing boom Indian had become a major hub for business process outsourcing companies, but there is much more to this outsourcing boom than is commonly understood. Fortunately, India stands to benefit from it in a great measure.
4. Well equipped & regulated capital markets The Indian stock and debt markets, including banks and mutual funds are well regulated by the Securities and Exchange Board of India and the RBI, various measures are taken to protect investors’ sentiments & interest. In terms of infrastructure the Indian institutional framework is improving rapidly, backed by a strong financial system.
Mutual Funds Investments for NRIs.
Issues & clarifications
Can NRIs invest in Mutual Funds in India?
Investments by NRIs in Mutual Funds can be made on a repatriable or on a non-repatriable basis, as preferred by the investor
Repatriable Basis
To invest on a repatriable basis, you must have an NRE or FCNR Bank Account in India. The Reserve Bank of India (RBI) has granted a general permission to Mutual Funds to offer mutual fund schemes on repatriation basis, subject to the following conditions:
The Reserve Bank of India (RBI) has granted a general permission to Mutual Funds to offer mutual fund schemes on non-repatriation basis, subject to the following conditions:
Does an NRI need any approvals from the Reserve Bank of India to invest in mutual fund schemes?
No. As an NRI one does not need any specific approval from the RBI for investing or redeeming from Mutual Funds. Only OCBs and FIIs require prior approvals before investing in Mutual Funds.
Can NRIs invest in Mutual Funds in India?
Investments by NRIs in Mutual Funds can be made on a repatriable or on a non-repatriable basis, as preferred by the investor
Repatriable Basis
To invest on a repatriable basis, you must have an NRE or FCNR Bank Account in India. The Reserve Bank of India (RBI) has granted a general permission to Mutual Funds to offer mutual fund schemes on repatriation basis, subject to the following conditions:
- The mutual fund should comply with the terms and conditions stipulated by SEBI.
- The amount representing investment should be received by inward remittance through normal banking channels, or by debit to an NRE / FCNR account of the non-resident investor.
- The net amount representing the dividend / interest and maturity proceeds of units may be remitted through normal banking channels or credited to NRE / FCNR account of the investor, as desired by him subject to payment of applicable tax.
The Reserve Bank of India (RBI) has granted a general permission to Mutual Funds to offer mutual fund schemes on non-repatriation basis, subject to the following conditions:
- Funds for investment should be provided by debit to NRO account of the NRI investor. Alternatively, funds may be invested by inward remittance or by debit to NRE / FCNR Account.
- The current income in the form of dividends is allowed to be repatriated.
Does an NRI need any approvals from the Reserve Bank of India to invest in mutual fund schemes?
No. As an NRI one does not need any specific approval from the RBI for investing or redeeming from Mutual Funds. Only OCBs and FIIs require prior approvals before investing in Mutual Funds.
Tax slab on capital gain
1. Can NRI gift units of mutual fund schemes to their relatives in India?
Yes
2. Is the indexation benefit available to NRIs?
Yes, in case units are held for more than twelve months
3. What is the tax rate on short-term capital gain?
In case of non-resident non-corporates - 30% plus
In case of foreign companies - 40% plus
4. Tax slab on capital gain Tax Rates* under the Act
STT is payable on redemption [u/s 10(38) ]
*Plus surcharge as applicable: corporate, co-operative societies, firms and local authorities: 10%; Individuals/HUFs/BOIs/AOPs, with total income exceeding Rs.10, 00,000: 10%; Artificial juridical person: 10%.
** Capital Gains on redemption of units held for a period of more than 12 months
from the date of allotment.
*** As per section 111A of the Act, effective from 1/10/2004 short-term capital
gains on equity oriented fund is chargeable to tax at a Lower rate of 10 percent.
• Long Term Capital Gains arising from redemption of unit of a non equity oriented fund are exempt from tax, if gains are invested in specified bonds within 6 months from the date of redemption, under Section 54EC of the Act or if gains are invested in eligible equity issues within 6 months from the date of redemption, under Section 54ED of the Act. In order for the unit holder to obtain the benefit of a lower rate under the DTAA, an eligibility certificate from unit holder’s Assessing Officer should be provided to the Fund.
Yes
2. Is the indexation benefit available to NRIs?
Yes, in case units are held for more than twelve months
3. What is the tax rate on short-term capital gain?
In case of non-resident non-corporates - 30% plus
In case of foreign companies - 40% plus
4. Tax slab on capital gain Tax Rates* under the Act
STT is payable on redemption [u/s 10(38) ]
*Plus surcharge as applicable: corporate, co-operative societies, firms and local authorities: 10%; Individuals/HUFs/BOIs/AOPs, with total income exceeding Rs.10, 00,000: 10%; Artificial juridical person: 10%.
** Capital Gains on redemption of units held for a period of more than 12 months
from the date of allotment.
*** As per section 111A of the Act, effective from 1/10/2004 short-term capital
gains on equity oriented fund is chargeable to tax at a Lower rate of 10 percent.
• Long Term Capital Gains arising from redemption of unit of a non equity oriented fund are exempt from tax, if gains are invested in specified bonds within 6 months from the date of redemption, under Section 54EC of the Act or if gains are invested in eligible equity issues within 6 months from the date of redemption, under Section 54ED of the Act. In order for the unit holder to obtain the benefit of a lower rate under the DTAA, an eligibility certificate from unit holder’s Assessing Officer should be provided to the Fund.
FAQ
--> Can an NRI grant a power of attorney to a resident of India?
Answer: An NRI is free to grant Power of Attorney to a Resident. However, such Power of Attorney is restrictive. The Power of Attorney holder can do local operations and give deposit renewal instructions. Power of Attorney Holder can not instruct to transfer funds abroad. The following conditions should be satisfied when a power of attorney is being executed outside India: The attorney should preferably be a resident of India. The power of attorney should be executed on a stamp paper/plain paper as the case may be as applicable in the country in which the power of attorney is executed. Any authorized official of the Indian Embassy/Consulate/Trade commissioner in the country where the executants resides should attest the signature of the executants. The attorney's signature should be verified in India by Notary Public or his employer or his banker on a separate piece of paper, which should be submitted to SHFL together with the power of attorney.
--> Can an NRI vote in the Indian Government elections?
Answer: As of now, India does not have an absentee ballot system. Section 19 of The Representation of the People Act (RPA)-1950 allows a person to register to vote if he or she is above 18 years of age and is an ‘ordinary resident’ of the residing constituency i.e. living at the current address for 6 months or longer. Section 20 of the above Act disqualifies a non-resident Indian (NRI) from getting his/her name registered in the electoral rolls. Consequently, it also prevents an NRI from casting his/her vote in elections to the Parliament and to the State Legislatures. The Representation of the People (Amendment) 2006 Bill was introduced in the Parliament by Shri Hanraj Bharadwaj, Minister of Law and Justice during February 2006 with an objective to amend Section 20 of the RPA-1950 to enable NRIs to vote. Despite the report submitted by the Parliamentary Standing Committee two years ago, the Government has so far failed to act on the recommendations. The Bill was reintroduced in the 2008 budget session of the Parliament to the Lok Sabha.
--> Does the Agreement of Sale have to be registered for immovable property?
Answer: In many states in India, the Agreement of Sale between the builder and purchaser is required by law to be registered. You are advised in your own interest to lodge the agreement for registration within four months of the date of the Agreement at the office of the Sub Registrar appointed by the State Government, under the Indian Registration Act, 1908.
--> How can an NRI repatriate the sale proceeds of their immovable property sold in India?
Answer: Sale proceeds not exceeding US$ 1 million per calendar year (Jan to Dec) can be repatriated subject to production of documentary evidence of inheritance / purchase of property accompanied by a Chartered Accountant's certificate to the effect that all taxes including capital gains tax have been paid. Prior permission of the Reserve Bank of India would be required for citizens of Pakistan, Bangladesh , Sri Lanka, Afghanistan , China or Iran. This facility is not available for citizens of Nepal & Bhutan.
--> What are the criteria regarding avail of home loans for NRIs in India?
Answer: According to Reserve Bank guidelines for NRIs: The loan amount shall not exceed 85% of the cost of the dwelling unit. Own contribution, which is the cost of dwelling unit financed less the loan amount, can be met from direct remittances from abroad only through normal banking channels, your Non-Resident (External) [NR (E)] Account and /or Non-Resident (Ordinary) [NR (O)] account and /or Non-Resident Special Rupee account [NRSR] in India. Repayment of the loan, comprising of the principal and interest including all the charges are to be remitted from abroad only through normal banking channels, your Non-Resident (External) [NR (E)] Account and /or Non-Resident (Ordinary) [NR (O)] account and /or Non-Resident Special Rupee account [NRSR] in India.
--> What are the tax implications for an NRI when selling a property?
Answer: An NRI may be subject to two main types of taxes when selling one’s property: - Short term Capital Gains apply on - property held for less than 3 years. - Long term Capital gains apply on - property held for more than 3 years. NRIs/PIOs can take the advantage of investing of sale proceeds in special Bonds to reduce their tax liabilities.
--> What are the formalities required to be completed when purchasing residential immovable property in India?
Answer: They are required to file a declaration in form IPI 7 with the Central Office of Reserve Bank at Mumbai within a period of 90 days from the date of purchase of immovable property or final payment of purchase consideration along with a certified copy of the document evidencing the transactions and bank certificate regarding the consideration paid.
--> What are the conditions regarding repatriation of balances in NRO accounts?
Answer: - Repatriation is allowed up to US dollars 1 million per calendar year for any purpose from the balances in NRO accounts subject to payment of applicable taxes. - The limit of US dollars 1 million includes sale proceeds of immovable properties held by NRIs/PIOs for a period of 10 years. - In case a property is sold after being held for less than 10 years, remittance can be made if the sale proceeds have been held by the NRI/PIO for the balance period.
--> Can NRO/NRE accounts be maintained by NRIs jointly with residents?
Answer: NRO accounts can be held jointly with residents. However, NRE accounts cannot be held jointly with residents. It can be held jointly only with NRIs.
--> What are the taxes applicable on NRE and FCNR interest?
Answer: Interest on NRE and FNCR deposits are exempted from tax in India. However U.S.A. and U.K. residents are advised to consult their tax advisor for implications of tax in U.S.A. and U.K.
--> What types of bank accounts can NRIs/OCBs open in India?
Answer: NRIs/OCBs can open the following types of accounts with banks in India, which hold authorized dealer licenses, as also other banks, specifically authorized by the Reserve Bank to maintain accounts in the names of NRIs/OCBs. Rupee Accounts 1. Non-Resident (Ordinary) Account - NRO A/c. 2. Non-Resident (External) Rupee Account - NRE A/c. Foreign Currency Accounts Non-Resident (Foreign Currency) Account - FCNR A/c This type of account can be hosted in Pounds, US Dollars, Japanese Yen and Euros.
--> What is the procedure to be followed for repatriating incomes and or interests in the above cases?
Answer: NRIs should designate a branch of an authorised dealer through whom the remittance of income is to be made and make an application in form RCI to the designated branch giving details of incomes earned during the previous financial year along with a Chartered Accountant's Certificate. The designated branch will allow the remittance of net amount (i.e. after payment of tax) or credit it to NRE/FCNR account of the applicant.
--> If an NRI plans to return to India, for how long will he/she be considered a Non – Resident Indian? And for what time period will his income from investments not be taxed?
Answer: As per Indian Law, ‘If a person stays in India for 182 days or more during the current financial year, he/ she will be considered a Resident Indian’. However, you cannot become a Resident of India if you are an NRI. If you are returning to India after 9 or more years, you will become a RNOR and only after that can you become a resident. Your income will not be taxed as long as you are a RNOR. Once you have become a resident of India though. Your entire global income will be taxable in India.
--> Can I sell property inherited by me in India to a person who’s not an Indian citizen?
Answer: Yes. A foreign national who is not of Indian origin can hold property in India, from a person of Indian origin or an Indian citizen. However, citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan must get prior specific approval from the Reserve Bank.
--> Can a citizen of another country, use his PIO status to gain dual citizenship; i.e. of India as well as the country of his residence? Answer: A bill was passed to grant dual citizenship to PIOs on 22nd December, 2003. The bill received the approval of the president on January 7, 2004. This will help grant to PIOs of full age and their children dual citizenship from the following 16 countries -United States of America, United Kingdom, Australia, Canada, Cyprus, Finland, France, Greece, Ireland, Isreal, Italy, Netherlands, New Zealand, Portugal, Sweden and Switzerland. However, The rules, regulations and requirements are still under process and will be updated as and when decisions are made by the Indian Government. The Central Government may register a person as a citizen of India if: • that person if of Indian origin, of full age and capacity and a citizen of one of the specified countries • OR that person was a citizen of India immediately before becoming a citizen of a specified country and is registered as an overseas citizen of India by the Central Government
--> If a person is born in India is he/she considered a citizen of India ?
Answer: As per the law, ‘Any person born in India on or after 26 January 1950 but prior to the commencement of the 1986 Act on 1 July 1987 was a citizen of India by birth. A person born in India on or after 1 July 1987 was a citizen of India if either parent was a citizen of India at the time of the birth. Those born in India on or after 3 December 2004 are considered citizens of India only if both of their parents are citizens of India or if one parent is a citizen of India and the other is not an illegal migrant at the time of their birth’.
--> I have a NRO FD. What is the TDS that will be deducted off it?
Answer: TDS chargeable is 30.6%.
--> I have a NRI PAN and all my earnings are from abroad. Do I have to pay tax for the same?
Answer: No, You will only have to pay tax if the income has been generated in India, if not, then you do not need to pay tax for the same.
--> Can an NRI grant a power of attorney to a resident of India?
Answer: An NRI is free to grant Power of Attorney to a Resident. However, such Power of Attorney is restrictive. The Power of Attorney holder can do local operations and give deposit renewal instructions. Power of Attorney Holder can not instruct to transfer funds abroad. The following conditions should be satisfied when a power of attorney is being executed outside India: The attorney should preferably be a resident of India. The power of attorney should be executed on a stamp paper/plain paper as the case may be as applicable in the country in which the power of attorney is executed. Any authorized official of the Indian Embassy/Consulate/Trade commissioner in the country where the executants resides should attest the signature of the executants. The attorney's signature should be verified in India by Notary Public or his employer or his banker on a separate piece of paper, which should be submitted to SHFL together with the power of attorney.
--> Can an NRI vote in the Indian Government elections?
Answer: As of now, India does not have an absentee ballot system. Section 19 of The Representation of the People Act (RPA)-1950 allows a person to register to vote if he or she is above 18 years of age and is an ‘ordinary resident’ of the residing constituency i.e. living at the current address for 6 months or longer. Section 20 of the above Act disqualifies a non-resident Indian (NRI) from getting his/her name registered in the electoral rolls. Consequently, it also prevents an NRI from casting his/her vote in elections to the Parliament and to the State Legislatures. The Representation of the People (Amendment) 2006 Bill was introduced in the Parliament by Shri Hanraj Bharadwaj, Minister of Law and Justice during February 2006 with an objective to amend Section 20 of the RPA-1950 to enable NRIs to vote. Despite the report submitted by the Parliamentary Standing Committee two years ago, the Government has so far failed to act on the recommendations. The Bill was reintroduced in the 2008 budget session of the Parliament to the Lok Sabha.
--> Does the Agreement of Sale have to be registered for immovable property?
Answer: In many states in India, the Agreement of Sale between the builder and purchaser is required by law to be registered. You are advised in your own interest to lodge the agreement for registration within four months of the date of the Agreement at the office of the Sub Registrar appointed by the State Government, under the Indian Registration Act, 1908.
--> How can an NRI repatriate the sale proceeds of their immovable property sold in India?
Answer: Sale proceeds not exceeding US$ 1 million per calendar year (Jan to Dec) can be repatriated subject to production of documentary evidence of inheritance / purchase of property accompanied by a Chartered Accountant's certificate to the effect that all taxes including capital gains tax have been paid. Prior permission of the Reserve Bank of India would be required for citizens of Pakistan, Bangladesh , Sri Lanka, Afghanistan , China or Iran. This facility is not available for citizens of Nepal & Bhutan.
--> What are the criteria regarding avail of home loans for NRIs in India?
Answer: According to Reserve Bank guidelines for NRIs: The loan amount shall not exceed 85% of the cost of the dwelling unit. Own contribution, which is the cost of dwelling unit financed less the loan amount, can be met from direct remittances from abroad only through normal banking channels, your Non-Resident (External) [NR (E)] Account and /or Non-Resident (Ordinary) [NR (O)] account and /or Non-Resident Special Rupee account [NRSR] in India. Repayment of the loan, comprising of the principal and interest including all the charges are to be remitted from abroad only through normal banking channels, your Non-Resident (External) [NR (E)] Account and /or Non-Resident (Ordinary) [NR (O)] account and /or Non-Resident Special Rupee account [NRSR] in India.
--> What are the tax implications for an NRI when selling a property?
Answer: An NRI may be subject to two main types of taxes when selling one’s property: - Short term Capital Gains apply on - property held for less than 3 years. - Long term Capital gains apply on - property held for more than 3 years. NRIs/PIOs can take the advantage of investing of sale proceeds in special Bonds to reduce their tax liabilities.
--> What are the formalities required to be completed when purchasing residential immovable property in India?
Answer: They are required to file a declaration in form IPI 7 with the Central Office of Reserve Bank at Mumbai within a period of 90 days from the date of purchase of immovable property or final payment of purchase consideration along with a certified copy of the document evidencing the transactions and bank certificate regarding the consideration paid.
--> What are the conditions regarding repatriation of balances in NRO accounts?
Answer: - Repatriation is allowed up to US dollars 1 million per calendar year for any purpose from the balances in NRO accounts subject to payment of applicable taxes. - The limit of US dollars 1 million includes sale proceeds of immovable properties held by NRIs/PIOs for a period of 10 years. - In case a property is sold after being held for less than 10 years, remittance can be made if the sale proceeds have been held by the NRI/PIO for the balance period.
--> Can NRO/NRE accounts be maintained by NRIs jointly with residents?
Answer: NRO accounts can be held jointly with residents. However, NRE accounts cannot be held jointly with residents. It can be held jointly only with NRIs.
--> What are the taxes applicable on NRE and FCNR interest?
Answer: Interest on NRE and FNCR deposits are exempted from tax in India. However U.S.A. and U.K. residents are advised to consult their tax advisor for implications of tax in U.S.A. and U.K.
--> What types of bank accounts can NRIs/OCBs open in India?
Answer: NRIs/OCBs can open the following types of accounts with banks in India, which hold authorized dealer licenses, as also other banks, specifically authorized by the Reserve Bank to maintain accounts in the names of NRIs/OCBs. Rupee Accounts 1. Non-Resident (Ordinary) Account - NRO A/c. 2. Non-Resident (External) Rupee Account - NRE A/c. Foreign Currency Accounts Non-Resident (Foreign Currency) Account - FCNR A/c This type of account can be hosted in Pounds, US Dollars, Japanese Yen and Euros.
--> What is the procedure to be followed for repatriating incomes and or interests in the above cases?
Answer: NRIs should designate a branch of an authorised dealer through whom the remittance of income is to be made and make an application in form RCI to the designated branch giving details of incomes earned during the previous financial year along with a Chartered Accountant's Certificate. The designated branch will allow the remittance of net amount (i.e. after payment of tax) or credit it to NRE/FCNR account of the applicant.
--> If an NRI plans to return to India, for how long will he/she be considered a Non – Resident Indian? And for what time period will his income from investments not be taxed?
Answer: As per Indian Law, ‘If a person stays in India for 182 days or more during the current financial year, he/ she will be considered a Resident Indian’. However, you cannot become a Resident of India if you are an NRI. If you are returning to India after 9 or more years, you will become a RNOR and only after that can you become a resident. Your income will not be taxed as long as you are a RNOR. Once you have become a resident of India though. Your entire global income will be taxable in India.
--> Can I sell property inherited by me in India to a person who’s not an Indian citizen?
Answer: Yes. A foreign national who is not of Indian origin can hold property in India, from a person of Indian origin or an Indian citizen. However, citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan must get prior specific approval from the Reserve Bank.
--> Can a citizen of another country, use his PIO status to gain dual citizenship; i.e. of India as well as the country of his residence? Answer: A bill was passed to grant dual citizenship to PIOs on 22nd December, 2003. The bill received the approval of the president on January 7, 2004. This will help grant to PIOs of full age and their children dual citizenship from the following 16 countries -United States of America, United Kingdom, Australia, Canada, Cyprus, Finland, France, Greece, Ireland, Isreal, Italy, Netherlands, New Zealand, Portugal, Sweden and Switzerland. However, The rules, regulations and requirements are still under process and will be updated as and when decisions are made by the Indian Government. The Central Government may register a person as a citizen of India if: • that person if of Indian origin, of full age and capacity and a citizen of one of the specified countries • OR that person was a citizen of India immediately before becoming a citizen of a specified country and is registered as an overseas citizen of India by the Central Government
--> If a person is born in India is he/she considered a citizen of India ?
Answer: As per the law, ‘Any person born in India on or after 26 January 1950 but prior to the commencement of the 1986 Act on 1 July 1987 was a citizen of India by birth. A person born in India on or after 1 July 1987 was a citizen of India if either parent was a citizen of India at the time of the birth. Those born in India on or after 3 December 2004 are considered citizens of India only if both of their parents are citizens of India or if one parent is a citizen of India and the other is not an illegal migrant at the time of their birth’.
--> I have a NRO FD. What is the TDS that will be deducted off it?
Answer: TDS chargeable is 30.6%.
--> I have a NRI PAN and all my earnings are from abroad. Do I have to pay tax for the same?
Answer: No, You will only have to pay tax if the income has been generated in India, if not, then you do not need to pay tax for the same.
