| Q.1 |
Are any tax concessions
available to NRIs on balances/deposits held in
NRE/FCNR accounts? |
| Ans. |
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 relativets are also free
of Gift-tax. |
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|
| Q. 2 |
Are similar concessions
available in respect of balances held in NRO
accounts? |
| Ans. |
No. |
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| Q.3 |
What are the tax benefits to the
NRNR deposit account holders? |
| Ans. |
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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| Q. 4 |
What about tax benefits on funds
held in FCNR accounts? |
| Ans. |
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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|
| Q. 5 |
What is the approved method of
sending remittances into India? |
| Ans. |
The approved method of sending
remittances into India is through normal banking
channels. |
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|
| Q. 6 |
At what rates are remittances in
foreign currencies made by NRIs converted by
banks into rupees? |
| Ans. |
Such remittances will be
converted by banks at the market rate of
exchange. |
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| Q. 7 |
Can remittances be sent into
India otherwise than through the medium of a bank
in the country of residence of the remitter? |
| Ans. |
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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|
| Q. 8 |
Can Exchange Houses draw drafts
in foreign currencies? |
| Ans. |
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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|
| Q.9 |
Can NRIs remit funds through
Exchange Houses for investment in Government
securities, National Savings Certificates and
Units of Unit Trust of India? |
| Ans. |
Yes |
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|
| Q.10 |
Can NRIs remit funds through
Exchange Houses for investment in
shares/debentures of Indian companies? |
| Ans. |
Yes, subject to general/specific
permission of Reserve Bank for such investment. |
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|
| Q. 11 |
Can NRIs send drafts issued by
Exchange Houses for acquisition of residential
flats in India? |
| Ans. |
Ans. Yes. NRIs can send drafts issued by Exchange
Houses in favour of co-operative housing
societies/estate develops for acquisition of
residential flats in India in individual names. |
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| Q. 12 |
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? |
| Ans. |
Yes. |
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| Q. 13 |
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? |
| Ans. |
Yes. |
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| Q.14 |
Can NRIs take out of India
precious stones or jewellery purchased by them
during their visit to India? |
| Ans. |
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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| Q. 15 |
Can assets held in India by NRIs
prior to their becoming non-resident be
repatriated outside India? |
| Ans. |
No. |
