Miscellaneous
Queries by NRIs |
Are any tax concessions
available to NRIs on balances/deposits held in NRE/FCNR accounts?
Are similar concessions available in
respect of balances held in NRO accounts?
What are the tax benefits to the NRNR
deposit account holders?
What about tax benefits on funds held in FCNR
accounts?
What is the approved method of sending
remittances into India?
At what rates are remittances in foreign
currencies made by NRIs converted by banks into rupees?
Can remittances be sent into India otherwise
than through the medium of a bank in the country of residence of the remitter?
Can Exchange Houses draw drafts in foreign
currencies?
Can NRIs remit funds through Exchange Houses
for investment in Government securities, National Savings Certificates and Units of Unit
Trust of India?
Can NRIs remit funds through Exchange Houses
for investment in shares/debentures of Indian companies?
Can NRIs send drafts issued by Exchange
Houses for acquisition of residential flats in India?
Can NRIs remit premia on policies issued by
the Life Insurance Corporation of India by means of drafts issued by Exchange Houses in
favour of the Corporation?
Can NRIs remit tuition/boarding/examination
fees of their children studying in India by means of drafts issued by Exchange Houses in
favour of schools, colleges, universities, technical and educational institutions in
India?
Can NRIs take out of India precious stones
or jewellery purchased by them during their visit to India?
Can assets held in India by NRIs prior to
their becoming non-resident be repatriated outside India?
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?
Can NRIs settle their hotel bills in India
in Indian rupees?
Ans.I
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 relative's are also free of
Gift-tax.
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Ans.II
No.
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Ans.III
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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Ans.IV
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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Ans.V
The approved method of sending remittances into India is through normal banking
channels.
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Ans.VI
Such remittances will be converted by banks at the market rate of exchange.
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Ans.VII
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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Ans.VIII
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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Ans.IX
Yes
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Ans.X
Yes, subject to general/specific permission of Reserve Bank for such investment.
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Ans.XI
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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Ans.XII
Yes.
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Ans.XIII
Yes.
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Ans.XIV
Yes. NRIs can take out of India precious stones and jewellery (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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Ans.XV
No.
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Ans.XVI
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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Ans.XVII
Yes.
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