| 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. |
|
|
| 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. |
