Many Indians often pay tax as an NRI in the foreign country. The dilemma often catches them over pay or not to pay the income tax in India. This idea generally tosses in the mind of those non-residents who intend to resettle in India after your retirement abroad. However, they have surrendered their residency. This thought prompts them to think that they’re no more Indian citizens. So, they don’t have any liability to pay here as a tax. But indeed, it’s legally incorrect. The DTAA (Double Taxation Avoidance Agreements) is a bilateral treaty particularly constituted to tackle the income tax-based legalities of NRIs. What does DTAA state? As expanded above, this acronym stands for the Double Taxation Avoidance Agreements. It’s a bane of a treaty with one or multiple countries. Basically, it was evolved to deal with the double taxation issues. When a taxpayer pays income tax in the country of his residence, he doesn’t like to pay it in his hometown. So, he avoids paying it in the residence country. Let’s say, an NRI has paid taxes to the Australian government on the earned income from Australia. Legally, he has put off his liability in the foreign country. Now, he has decided to shift to India again after retirement. The question immediately grips his mind whether he should bring the funds (earned abroad) together with. Shall he pay the income tax again here, if he brings that amount here? Income Tax Law for NRIs: The NRI legal solutions are laid in the income tax law. Let’s have a cursory look over what it states on this income tax issue:
If you carefully go through, I have said that you must report about these foreign funds on your income tax return. It will state about your income, profits, losses and tax deductions to the Income tax authority here. Thereby, you can get rid of paying double tax on the same income earned abroad as referred in the DTAA. The NRIs won’t be taxed unless they qualify as “not ordinarily resident” in India. It completely depends on the aforesaid criteria. Once they get the exact idea about their status, then only the tax implication would be levied accordingly. What about liquidation of the restricted stock units (RSU)? The liquidation of the foreign stock units in India needs to be taxed. It’s what the DTAA treaty says. Simply put, the global income is taxable in India. Whether it is earned in the USA or Australia, the income earner has to report about his income, gains and tax during filing the income tax return. If you liquidate your RSUs, you will earn some capital gains. The Income Tax Act states any capital gain (whether short term or long term) is taxable. However, you might have paid tax in the foreign country. When you come here in India, you have to pay it again. But, you earn some credits for taxes that you have paid in the foreign country. You can claim for those credits when you go to pay tax for the Indian income tax authority.
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As per a source, foreign investment in India’s startups has dipped 72% to $4.58 billion. But, the year 2022 was different. These companies had got $16.2 billion of funds during last year.
In all, these bearish trend can be an opportunity for non-residents of India to invest and yields profit overtime. As an NRI or non-resident of India, investing in an Indian new company comes up with an opportunity to support emerging businesses and potentially earn attractive returns. There are several options and possibilities for these emigrants to invest in Indian startup and coming companies. But the question is where to start with. This post will help find that way. Tips for NRIs to Invest in Indian Startps Consider these key points as investment options in India. For proven solutions, a consultant can better define.
They can leverage their expertise, networks, and capital to support promising new ventures and contribute to their growth. Undoubtedly, angel investing typically involves higher risks. But, you can also yield significant returns if the startup succeeds. You as an emigrant Indian can join angel investor networks, attend an emerging company events, or connect with local incubators and accelerators to identify investment opportunities.
This alternative allows emigrants to gain exposure to a different portfolio of these emerging companies and experience benefits from the expertise of professional fund managers. Here, one thing is must, which are research & due diligence on the track record and investment strategy of the venture capital fund. These are essential before investing.
NRIs can consider investing in PE funds, which specifically target the Indian market or have a sector-specific focus aligned with their interests.
Crowdfunding allows them to start with investing smaller amounts alongside other investors. This opportunity enables them to add diversity to their investment portfolio. These platforms often provide detailed information about the new ventures, their business models, and growth prospects.
These emigrants can come across programs like the Startup India Initiative, which offers tax benefits and funding assistance to these companies. Through these initiatives, non-residents can directly invest in Indian incubated businesses or contribute to funds, which are dedicated to supporting them.
Co-investing allows them to leverage the expertise and local networks of their partners while sharing the risks and potential rewards. Starting with building relationships with trusted local partners can provide access to a broader range of investment opportunities.
With this option, emigrant Indians can invest in emerging companies with a lower initial investment amount and potentially benefit from a discount or other favorable terms during conversion.
But, this can be risky. So, it is crucial to conduct thorough due diligence and seek legal advice to ensure compliance with Indian regulations and protect their investment.
These platforms allow NRIs to lend money to early-stage companies directly, earning interest on their investments. Beforehand, it is suggested to assess the creditworthiness and risk associated with each borrower before participating in peer-to-peer lending. Important Considerations
NRIs have various investment opportunities in Indian startups. They can participate in angel investing, venture capital funds, or co-investment opportunities. Investing in these companies allows them to support emerging businesses, contribute their expertise, and potentially earn attractive returns. Additionally, government initiatives, crowdfunding platforms, and direct equity investments offer avenues for NRI participation in the vibrant startup ecosystem of India. Academic Transcripts
Like any performance track, the academic transcripts are the records consisting of your mark sheets that you have obtained from the educational institution. In short, it is an evidence of the evaluation of your academic performance. The students can seek them to apply for a variety of reasons, as getting permanent residency, higher education in the foreign universities and employment. There are many employers abroad who want to have workforce from the Asian countries. These often ask for these documents before nodding for H1B visa and immigration. However, you cannot throw a bunch of provisional and mark sheets because they need them to be verified by the university you have done the degree course(s). It should be properly placed in a sealed envelope with a stamp of that varsity. Here, you need advisories from the experts. What does it contain?
The NRIs or prospective emigrants should always remember that these documents should be signed with a stamp by the registry of the institution so that it may serve as an official letter-headed document for various purposes. These documents are in the check-list of transcripts:
Where can you get them from originally and in case you lose them? Your all academic documents are issued by the education board of the conduct, where you did your graduation or any degree course. But, these transcripts are generally generated by the academic institution. In case you lose them, you should raise the concern for re-issuance with that institution. But, there are very thin chances to get them from there. So, you can directly contact the board of education in the similar context and apply for a duplicate transcript. As prevention is better than cure, you should keep it carefully so that you don’t need to hustle a lot later for getting their duplicates. For which transcript you should apply? You always obtain it for the latest courses you have completed. Let’s say, you have done a graduation course, the consolidated mark sheet of all years from the undergraduate studies will be needed. If you are likely to apply for any of the undergraduate courses, you would need the transcripts from the Secondary School Education or Pre-University Education. In domestic varsities, you don’t need to submit them. Mostly, the candidates who are ambitious to go abroad for higher studies seek them. Such students should submit an interim/provisional transcript to the varsity where to want to study. This can be possible only if they have completed their respective courses. When do you need their translation? This is the case when you aspire to go abroad. Being an internationally accepted language, most of the universities accept their English version. So, you need to get them dubbed in the same through the university or there are some outsourcing agents, as Services 2 NRI, which can provide it on being requested. You should always remember that the translated copy must be stamped and signed by the competent authority, as in the case of original ones in the regional language. Non-residents of India (NRIs) often talk to their financial advisor or legal consultant on how to save money. Taxes take away the major part of the income, which is a true pain. It seems like a horror story that never ends.
After reading this blog, they can get to by far the easiest ways to save tax money for investment. So, here we go. 1. Equity linked Saving Schemes (ELSS) ELSS shines through the pain that tax oftentimes take along with. The shortest yet mandatory lock-in period is a silver lining that attracts superior returns. That’s why the experts call it one of the best investment tips. However, they won’t get privileges, as the resident folks get under Section 80C of the Income Tax Act. For instance, PPF account or making a new investment in NSC is what the natives have as an exclusive plan for making and saving money. On the flip side, non-residents cannot make it to a new plan. Rather, they have to stick to the old PPF account, if one has it before immigration. Talking about the benefits, emigrants can put their currency in this scheme to draw interest around 11 percent per annum, which is way far than mere 6 to 7 percent of NRE or NRO or FCNR deposits. This percentage can touch up to 19.35 percent if the currency is parked there for 5 years. Whatever interest they get, it also attracts tax. On other plans, it could be a little over 30 percent on the interest rate of other deposits. Capital gains on these schemes are available on long term plans, i.e. for 3 years at least. And, the deposits can be started from INR 1 lakh to desirable limit, which levies just 10 percent tax. One can open it through a simple KYC procedure at first, which is also available online. Submit address proof or the country where you live together with legal documents like VISA and passport. If you cannot make it to your personal presence, you have In-person verification (IPV) alternative to verify your identity on call. Even, you can send those documents via courier to complete the KYC. 2. Unit Linked Insurance Plans (ULIPs) Like ELSSs, the emigrants with Indian passport are free to get an insurance policy, which later saves on taxes being paid. However, the experts take it as an investment offer instead of a tax saving plan. 3. Mutual Funds (MFs) These involve risk tolerance factor, as its profitability quickly scrolls up and down. It means there is a big uncertainty of getting some fruitful interest. Now with some stringent FATCA & Securities Exchange Commission Regulation policies in place, investment in securities won’t be feasible. However, there are UTI AMC, PPFAS, Sundaram AMC, DHFL and a lot more that are in the flow of accepting investments from Indian diaspora in Canada and the USA. If you want to figure out what you’re likely to get from, S2NRI has the best NRI investment tips. You can get to know about what is exclusive and advanced. Indian migrants in Germany encounter many problems before solemnizing marriage. Of course, that’s a foreign country where no Hindu Marriage Act is mentioned in its law-book. But still, NRIs do marry with the Germans.
Like the Special Marriage Act (1954), the German government allows inter-religion marriage. It is observed in the very presence of the Standesamt (synonymous to Registrar). The couple must produce certificate of no marriage before him. Don’t get confuse over certificate of no impediment to marriage since the fore is synonymous to it. Why NRIs need it? It certifies that the applicant is very much applicable for legible marriage anywhere. It proves the single status of its holder. But the presence of defaulters always poses a threat. Some educational institutions make it mandatory to present this certificate overseas. In addition, many offshore offices also require it during recruitment. What if Indian authority in Germany does not issue it? Indian consul does not hold the right to issue it. So, the applicant must seek exemption from the German President of the Higher Regional Court (Oberlandesgericht). How to apply for it in India? Indian government has delegated many authorities to issue it. So, one can apply for the certificate of no marriage in India. This provision is introduced for the convenience of Indian diaspora in foreign countries. But it does not imply that Indian natives are barred from it. Indeed, the Hindu Marriage Act and the Special Marriage Act negate possibility to have this document in India for marriage. Apply to these authorities:
Recently, several Overseas Citizens of India (OCIs) encountered challenges in boarding the flight. Despite having tickets, passport and OCI card, they were off-loaded. Mostly, such cases are registered in Australia, Malaysia, Thailand and Singapore.
It happens due to several confusions in the perspective of OCI rule amendments, which are being implemented. Here is a list of those amendments issued as an advisory on OCI card:
As a gist, the card holders need not get through the renewal procedure if it is issued at or after 50 years of age. The new card would be reissued only once when the passport is undergoing renewal after surpassing that age limit. Simply say, if the passport is valid and the person has recently reached 50, he/she can travel across the boundaries. Carrying the old passport really won’t help if the card is not renewed before 21 years of age. Amidst all such criticalities, the card holders are at the dead end. On one side, they have to fulfill commitments and responsibilities. On the other hand, the hefty loss due to cancellation of ticket is causing dents in their savings. In all, the overseas citizens should carefully follow the instructions, if they really want to avert the prospective monitory loss. They should follow the renewal process at the due time religiously because this is the only way to get off these card-based challenges. If you want to apply for a passport or a visa or immigration, you should have a Police Clearance Certificate (PCC) together with other documents. Being a subject matter of legality, you should get it to pass through verification with ease. Simply put, it will help you to get through legal barriers if you want to settle and work abroad. It shows yours as a true identity that has no criminal record. But, this certificate is not required for those who intend to travel abroad for tourism. Now-a-days, documentation is not constrained to visit in-person. The digital trend is in. Therefore, you have the best alternative to get this police verification certificate online from the local police station. Just browse the website of the police and follow the rundown of prompts. But, keep into account that the pan formalities and eligibility to apply for it would be similar. Let’s get through who can apply for it. Eligibility: Every citizen, who has a crystal clear background, can get it. But, they should make sure that their current address and other details would be similar in all supporting documents. Also, non-residents can file an application to obtain it. Documents You Should Carry to Apply for PCC in India:
Documents You Should Carry to Apply for PCC, if in Abroad:
Online Procedure to Apply for Police Verification Certificate in India: There are two ways easiest ways to get police clearance document online. One way is while applying for a passport. If you have other intention, like verification for employment, you can get it directly from the state police official website. Catch these two procedures respectively. 1. From Passport Sewa Kendra (PSK):
2. From Police Website:
The issued PCC will show an electronic signature of the competent authority. So, you need not worry about affixing any stamp or signature of the competent authority. The immigration or consuls can check it if it is authentic through the official website directly. Click hereThe paperless work is on a progressive track at the governance level in India. The State and Central governments are trying to introduce convenience in people’s life. The government is aware of their grievances in accessing civil services, such as driving licence, car registration, voter ID, PAN Card, school and college certificates or death certificate etc.. So, it introduced DigiLocker or Digital Locker service during the last year. Acceptability of digital certificates: However, it has been running successfully. Are digital documents acceptable? This question stemmed many doubts in the mind of citizens. But, several authorities like railways and airports have started accepting electronic versions of Aadhaar/Voter ID, Driving Licence, School Mark Sheet, PAN Card and so on. Now, the students and professionals can access this service for speedy attestation of certificates in India from issuer organisations. Even, there are many requestor organisations that utilize this facility. Issuer Department/Organisations: It can be an issuing organisation that avails digitally generated certificate or documents on its web portal/applications/ apps for DigiLocker. It integrates API to facilitate this service while abiding by the standard protocols. Simultaneously, it verifies the documents through these ways: 1.QR code: The organisation integrates an encrypted QR code with the certificate. It’s visible in the digital locker also. The DigiLocker Mobile App has a QR scanner to decrypt and hence, verify it. Thereby, the user gets instant access to the verified document that is genuine. 2.Digital signature: Digitally signed birth certificate or death certificate or school mark sheet or any other document can be accessed through its app. But when it comes to cross-examining the authenticity of that signature, you need a PC or laptop only. 3.Verification portal: The validity of the certificates can be checked by scanning alpha-numeric characters printed on them through the respective website. Requestor: It’s a widget to facilitate seamless verification. Simply put, a user doesn’t need to wait in a serpentine queue for attesting a birth certificate or the other ones manually. India has millions of users. This requestor minimizes the turnaround time of attesting a document. Verifier: Many students and professionals need to verify the authenticity of certificates provided by the Municipal Corporation or any other government department. It mainly happens while getting HRD attestation services to verify the photocopied mark sheet/ NABC/birth certificate/ voter ID. In such cases, the HRD contacts the issuer of that certificate to examine its authenticity. The DigiLocker service brings issuers, requesters and seekers at the same place offering credentials and verification. How can you use DigiLocker system? Any citizen can integrate his/her mobile number only to sign up. After signing up, an individual can upload maximum 10 MB pdf/jpeg & png file. A user with the Aadhaar Card can link and enjoy an easy access to e-signed personal certificates. These steps are mandatory to link with Aadhaar number:
How can you use it for getting certificates attested? 1.URI: As aforementioned, you can approach the issuer department, like university for a transcript before getting MEA attestation of the degree certificate. The digilocker provides with URI or Uniform Resource Identifier. The issuer department provides it to fulfill the mandates of every e-certificate of this locker. The user can access its details by clicking the URI of the relevant organisation/department. 2.Online verification: The URI will let you interact with the issuer like school/ university/ ministry/organisation. Thereby, you can directly send a digital copy of your documents/certificates to get them verified quickly. 3.Get attested documents: Once verified, you can speed up the process of getting a visa or apassport or PAN card by sending it for attestation of the related department through this digilocker. 4.Integrated certificates: This locker offers a cloud service to store and process a request for the digital certificate. Around 10 MB space is allotted to every user. 5.Authentic records sharing: The user can get through this locker to the certificates directly at the source, which can be a different department. The address and identity of the user reduce administrative overheads. Consequently, the attestation service takes relatively less time. Do you have a plan to multiply your hard-earned income?
The Indian government is trying hard to boost NRI investment in the mutual funds (MFs). However, it intends to implement the same idea on the indigenous market also. Can you assume why it is so? Why mutual funds are important? It’s just because the government wants its folks to pool what money they have in surplus. They can buy securities. Thereby, they can have a consistent source of income through the mutual fund investment. This scheme also helps financial institutions to raise money for further investment. It’s true that the interest rate may vary. But eventually, the investors get a golden opportunity to make more out of what money they have invested. Let’s get through the rundown of the expert advice on the mutual finds investment for beginner NRIs: 1. Repatriable or non-repatriable: The non-residents of India can multiply their bank balance by purchasing these securities. They should be well-versed with these facts stated under the FEMA (Foreign Exchange Management Act):
2. Application Formalities: To invest in this scheme, you should open a systematic investment plan (SIP). But before that, you should follow these steps to fill an online and offline form respectively:
3. Power of Attorney: As its name suggests, you can assign the authority to operate your MF account on your behalf through defining the power of attorney. Besides, you should be abided by these guidelines:
5. Redemption: It stands for regaining the possession of your MF. You should be aware of these facts:
6. TDS (Tax Deduction at Source): It’s noteworthy that you, an NRI, get the tax deducted at a source on capital gains. If you have kept the equity funds in the account for more than a year, you can enjoy tax exemption at source. Thereby,
Case: I solemnized marriage with a Filipino. And now, I want to upgrade my marital status with the foreign embassy. But, the embassy has rejected my application since I did not submit my CENOMAR-Certificate of No Marriage before. What should I do?
What is CENOMAR? Many foreign countries, including the USA, the UK, Australia, Europe and Philippines etc., allow marriage with their natives on providing that you have submitted bachelorhood certificate. It is what you should have to provide with for satisfying the foreign immigration authority. For your acknowledgement, this certificate is a legal proof to determine whether you’re single or not. So, you should always keep in mind that the foreign immigration should be informed about your marital status. Otherwise, you can be pushed into the critical scenarios wherein you have to justify that you’re a bachelor. If you’re an Indian and have solemnized marriage with a Filipino, let’s say, the foreign immigration authority can sentence you. It’s just because you did not enclose that legal document. You should be ready with a preventive measure. If you don’t have any idea about how it looks, you can check the certificate of singleness sample online & submit it. What do you need to have? You should know how to apply online. It’s not an uphill climb. However, India doesn’t have a uniform process to get this certificate. But, you can get it by applying with the first class magistrate in the local court. You might be wondering to know what documents you should enclose. Let’s settle down this query. You should have this documented proof:
Is attestation of the CENOMAR application mandatory? Commonly, this certificate carries the stamp and a signature of the first class magistrate. But, the foreign immigration authority may reject it, if it doesn’t have attested from the Ministry of External Affairs (MEA). However, this certificate may appear a declaratory order. Generally, the court issues it. It should explicitly mention the purpose of this certificate. Besides, the magistrate thoroughly examines whether or not the supporting documents are authentic. If they appear unauthentic, the magistrate can reject your application. Therefore, you should showcase the original proofs while enclosing the photocopies of your documents. Even, you should also be aware about the affidavit. Although it’s a sworn in writing, yet you should clearly write down the name of the candidate and his guardians. It must also read the purpose which you want to seek it for. Eventually, you should take your certificate to the attestation section of the consular, passport & visa division of the MEA in New Delhi. These attestation services will trail the attestation by the Home Department of the State Government. Thereafter, you should counter-attest it with the consular of the intended foreign country. What if you want to apply it with PSO? NSO is an authority of the Philippines that issues authentic documents to the applicants. It facilitates CENOMAR online application form on a certain payment (in between ₱100.00 to ₱500). If it’s feasible, you can visit the PSA office in person subsequent to applying for NSO CENOMAR form online. It can help you to get off the glitches and get it straight from the counter where it processes. Make sure that you have enclosed all supporting documents that I have mentioned above, except the affidavit. Within 4 working days, you will get it. |
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