India is the second fastest growing economy in the world. GDP Growth rate poised at 8.5%. Consumer spending has increased exponentially in the last decade. FII Contribution to investment in Indian markets comprise 55%.
There are a host of options available for investment- with benefits ranging from
- Tax free returns.
- Fixed return income products with specified maturity periods.
- Facilitates to switch between investment options depending on changing market conditions.
Service Execution process
We understand the clients need. We discuss the investment procedures, laws, tax rules pertaining to investments in India and reporting norms. We follow a detailed reporting procedure (for investments made in India) towards U.S tax requirements.
A through discussion on Client’s needs is made, after which risk profiling is undertaken to understand the risk tolerance of the client. We then follow the wealth creation tool as specified by us here.
- Investments made through NRE acs are fully repartriable.
- Investments made through NRO acs are not repatriable.
- PAN is mandatory for investors.
- KYC is mandatory for investors.
- The investor must be a Person of Indian Origin (PIO) or his parents and/ or grand parents must have PIO status.
NRI/RI/RNOR status as per Income Tax Act
You will be considered as Resident Indian(RI) if you fulfill ANY ONE of the below 2 points:-
- You are in India for more than 182 days during that financial year
- You are in India for 365 days or more during 4 financial years preceding that financial year AND 60 days or more in that financial year.
- If you are an Indian Citizen and you go abroad for employment purposes OR as a member of a crew in an Indian ship- the 60 days get replaced by 182 days
- If you are an Indian Citizen or a PIO and your visiting India- the 60 days get replaced by 182 days
If you do not fulfil BOTH of the above points 1 and 2, you will be considered as Non Resident Indian (NRI)
You will be considered as Resident but Not Ordinarily Resident (RNOR) for that financial year if you fulfil any one of the above points 1 or 2 AND if you fulfil any one of the below points 3 or 4:-
- You have been an NRI in 9 out of 10 financial years preceding the year.
- You have been in India for 729 days or less during 7 financial years immediately preceding the year.
Please note:- You are allowed to keep your RNOR status for up to 3 financial years after your return back to India for taxation purposes.
Taxability depending on your status:-
|Status||Income Earned in India||Accrues or Arises in India||Accrues or arises outside India|
|Non Resident Indian(NRI)||Yes||Yes||No|
|Resident but Not Ordinarily Resident(RNOR)||Yes||Yes||No|
Accrues in India means:-
- Income from a business connection in India.
- Income from any property, asset or source of income in India.
- Capital gain on the transfer of a capital asset situated in India.
- Income from salary if the services are rendered in India.
- Income from salary which is payable to you by the Government of India for services rendered outside of India when you are an Indian citizen.
- Dividend paid by an Indian company even though this may have been paid outside India.
- Interest, royalty or technical fees received from the Central or the State Government or from specified persons in certain circumstances.