Non-Resident Indians (NRI) advisiory

With India being one of the fastest growing economies in the world, Indian market has lured in many business owners, investors and companies to set up a business, buy a business and to invest in the stock market. Indian markets have a favourable business climate and flexible laws for any foreign business to set-up their base in India. Government has further increased the rate of Foreign Direct Investments (FDI) for the Non-Resident Indians (NRIs) to 100% to attract more NRI investment in India.

VJM and Associates LLP  helps in planning and strategizing the investment plans for the non residential indians i.e. NRI. The team of skilled and experienced professionals come up with plans to fulfil the clients demand. The services range from business set up, asset acquisition to reviving an old business, Obtaining approvals from various authorities etc..

Know More about Services to NRI

We offer a wide range of financial and legal services to the NRIs looking for investing in India, so that they experience a hassle free investment process. Our aim is to regulate smooth flow of investment transactions and happy experience.

Criteria to decide whether a person is resident varies from statute to statute. Every statute has its own definition of residents.

  • NRI as per Income Tax Act, 1961

Under Income Tax Act, Section 6-”Residence in India” read with section 2(30)-”Non-resident” defines criteria to decide residential status of a person. 

As per Section 6, any person is considered as resident in India if he satisfies any of the following conditions:

  1. The concerned individual has been in India for more than 182 days during the relevant previous year; or 
  2. The concerned person has stayed in India for 365 days or more for 4 years immediately preceding the relevant previous year and has stayed in India for 60 or days during the relevant year.

Amendments by Finance Act, 2020

However, with an objective to stringent provisions related to residential status, the Finance Act, 2020 has proposed to change the period of 182 days to 120 days. Therefore, concerned individuals must have stayed in India for more than 120 days during the relevant financial year to qualify as a resident.

As per Section 2(30) of Income Tax Act, any person who is not a resident in India is a non-resident.

It is pertinent to check the residential status of a person as it helps in determining the taxability of Income earned by such person in India. Read hear to know more about NRI

  • NRI as per Constitution of India 

The Constitution of India doesn’t define or determine whether a person is a resident in India or not. However, Part-II of the Constitution of India determines the “Citizenship” of a person. It helps in checking whether a person is an Indian Citizen or not.

As per Article 5 of The Constitution of India, A Person who has his domicile in the territory of India and who satisfies any of the following condition shall be considered as Indian Citizen:

  1. Who was born in the territory of India or
  2. Either of his parents were born in the territory of India or
  3. who is ordinarily residing in the territory of India for not less than 5 years immediately preceding such commencement,

Other terms with vaguely the same meaning are overseas Indian and expatriate Indian

  • NRI as per Foreign Exchange Management Act

According to FEMA, you are NRI in following cases:-

  1. If you are settled abroad and have come to India for a purpose other than employment or business and have no intention to stay in India permanently, you will continue to be considered Resident Outside India (NRI) irrespective of your duration of stay in India.
  2. If you are a student studying abroad, then you are a NRI from the first day of leaving Indian grounds.
  3. If you go abroad for employment, business or vocation, you are NRI as per FEMA from day 1 of your departure.

However, the Income Tax Act determines whether a person is NRI or not depending upon the duration of stay whereas FEMA decides if you are NRI or not depending upon the reason on stay or departure.

As one of the fastest growing economies, India offers NRIs a wide range of investment opportunities across a variety of asset classes. NRIs keen to explore investment opportunities in Indian Capital Markets like mutual funds and fixed deposits, they can also invest in the real estate market.

We offer the following services to NRIs:-

  • Completing all the Banking protocols
  • Keeping routine track of the investments.
  • Strategizing real estate investment through top notch property consultants.
  • Filing income tax returns.
  • Proper dispose of the rent from property or sale of property
  • Devising capital market investment plans
  • Regulating the acquisition or lease of property

India has an abundance of human resources and labour at a lucrative rate. Also the government policies makes it one of the best locations to invest in business set-ups; for NRIs, the government has even friendly business set up options.

For setting up business in India, following are the services required which we offer-

  • Develop a market penetration strategy.
  • Devising the Financial strategy and finance model.
  • Looking into all the legal formalities and incorporation process
  • Locating the ideal locations
  • Determining the potential partners and investors in the area.
  • Arranging finance and manpower during the early stages of the business set-up.

For NRIs who already have set-up business in India, we operate as a representative office or handle few of their operations as assigned to us.

Returning NRIs are those NRIs who are returning to India permanently, they will be considered as RNOR for 2 years and thereafter will be considered as ROR.

We offer assistance in completing the dispositions of the assets which they wish to dispose of after/before returning to India. We help in:-

  • Devising the residential status under FEMA and income tax liabilities.
  • Regulating plan of action to invest in property outside india
  • Facilitating clearance required under FEMA from RBI to continue to hold assets outside India.
  • Following the protocols for  reinvestment of sale proceeds of assets acquired outside India.
  • Investment plan for investing in Indian market.

If an indian plans to Immigrate permanently to another country, we extend our assistance in helping to repatriate the assets in India. We work for:-

  • Acquiring clearance needed under FEMA and RBI so as  to continue to hold certain assets in India.
  • Facilitating repatriation of sale proceeds and income of assets held in India.
  • Devise a tax liability strategy in India.
  • Monitor, record and report on his investments in India on a routine basis

If an NRI inherits an asset or property in India, we help in liquidating the asset, disposing the asset or handling the asset efficiently as per the wish of the NRI. We help them to achieve their desires by smoothly handling the finances, income tax procedures and RBI guidelines.

Permanent Account Number or PAN is mandatory for all the persons who are required to file return or wish to carry out financial functions in India. Therefore,it is mandatory for all those NRIs who wish to operate or invest in India.

  • Who needs an NRI PAN?

PAN is a prerequisite for every person who wants to file Income tax return in India or who wants to enter into a transaction where quoting PAN is mandatory. Therefore, in such scenarios, it becomes mandatory for a person to apply for a PAN.

Few examples of cases where it is mandatory to quote PAN:

  1. Sale of purchase of motor vehicle, other than two-wheeler.
  2. If an NRI wishes to invest the Indian Capital market including mutual funds and shares as it is mandatory to quote PAN for opening DEMAT Account with depository, participant, custodian of securities or any other person with SEBI 
  3. If an NRI has a property or land. Sales or purchase of immovable property requires quotation of PAN if value of property or stamp duty value of the property is exceeding INR 10 Lacs.
  4. Deposition of cash with a bank or a co-operative bank for an amount exceeding INR 50,000.
  5. For entering in contract of sales of securities, other than Shares, where value of transaction exceeds INR 1,00,000.

Apart from this list, there are various other transactions, where quoting a PAN is mandatory.

Click here to know more about NRI PAN

https://www.tin-nsdl.com/services/pan/foreign-citizen.html

PIO Card is a card issued by the government of India to a Person of Indian origin. PIO card holders get many benefits and relaxations from the government in sectors of education, economy and finance. However, PIO card holders do not enjoy employment benefits in government services and constitutional services.The person has to submit all the relevant documents in person to the high commission on any working day from 9:30am till 12:00pm.

  • Benefits of PIO card:- 

  1. A person does not require any work/student visa to visit India till the time the PIO card is valid.
  2. Helps in easing out the imigration process.
  3. A person can reside up to 180 days in India without informing to or registering with the FRRO (Foreigners Regional Registration Officer) or local police authorities
  4. They enjoy equality with NRIs in economic, financial and economic benefits.

 

Know more about PIO card

https://boi.gov.in/content/person-indian-origin-pio

How does VJM and Associates help

VJM and Associates LLP have a wide circle of experienced, skilled and highly trained professionals who interact with NRIs on a regular basis and help them to strategize their investment plan in India.NRIs cover a huge share of our client base.

We offer the following services to our valuable NRI clients:-

  • Strategizing the investment plan in India.
  • Determination of your residential status in India.
  • Interpretation of DTAA (Double Taxation Avoidance Agreement) with a view to reduce tax liability in India.\.
  • Setting up Business and helping out to find suitable associates and partners for the business.
  • Financial assistance in handling inherited properties.
  • Helping returning NRIs on repatriation of assets.
  • Helping with NRI PAN.
  • Filing income tax returns.
  • Advising tax saving investments
What people say about us

FAQs on Services to NRIs

Residential status is determined differently under different statutes. The Income tax Act has its set of criteria to determine whether a person is resident or not. Whereas, FEMA determine residential status differently.

NRI PAN is a PAN card issued to NRIs who wish to invest in the capital market, earn taxable income or have a property or land in India. It is mandatory of NRIs to have PAN card who wants to or are liable to file their Income tax returns in India or if such NRI wants to enter into any transaction where reporting of PAN is mandatory.

It depends on your residential status.  If You are a resident of India as per Income Tax Act and earned income globally then entire income is taxable in India whether earned in India or outside India. Whereas, in case of non-resident,then your liability to pay Income tax arises to such income which is earned in India.

The Income Tax Act determines whether a person is NRI or not depending upon the duration of stay whereas FEMA decides if you are NRI or not depending upon the reason on stay or departure.

Yes, NRIs are eligible for deductions on taxable income as per Chapter VI-A of Income Tax Act.

Why Choose us

Client Centric Approach

Client is the key driver of our service offerings.  Our approach to service offerings is based on a client centric and customised approach.  Our specialised teams are a mix of technical and industry experience in order to serve clientele for their specific needs.

Quick
Turnaround

We always endeavour for a quick turnaround time to serve our clientele.  We are supported by an experienced and client focussed support teams to offer timely services to our clientele. In case of any business exigencies and time sensitive service requirements, you can always count on us.

Team
Work

We have built high performing teams supported by strong work ethic. Our team is a mix of experts, professionals and support staff from technical and varied academic, cultural, social and ethnic backgrounds.  We believe that this diversification plays a vital role in motivating the team into High Performing Teams.

Open
Communications

We believe that open communication is the core principle in order to demonstrate trust, build long lasting and valuable relationships with clientele.  We are committed to ensuring transparency in communication, service offerings and delivery. 

Driving quality in delivery

Our service offerings are driven by quality and reviews at every level. We strive to provide a qualitative and value-added delivery to our clientele. At all times, we endeavour to provide exceptional client service by meeting client expectations and driving client satisfaction.

Blogs on services to NRI

NRI as per FEMA

Residential status as per FEMA | NRI as per FEMA

Applicability of provisions of FEMA are based on the residential status of a person, i.e., a person resident of India has more liberty under FEMA as compared to a NRI as per FEMA or person resident outside India. Therefore, to check the extent of applicability of FEMA provisions, it is important to first check the residential status as per FEMA for a person.

Read More »



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