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Can NRIs invest their funds in Government securities
or Units of Unit Trust of India(UTI)? |
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Yes. NRIs are freely permitted to invest their funds
in Government securities or Units of UTI through authorised dealers.
Units can also be purchased directly from UTI. |
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Are any tax concessions available to NRIs on
balances/deposits held in NRE/FCNR accounts? |
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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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Are similar concessions available in respect of
balances held in NRO accounts? |
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No. |
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What are the tax benefits to the NRNR deposit account holders? |
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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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What about tax benefits on funds held in FCNR accounts? |
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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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What is the approved method of sending remittances
into India? |
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The approved method of sending remittances into India
is through normal banking channels. |
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At what rates are remittances in foreign currencies
made by NRIs converted by banks into rupees? |
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Such remittances will be converted by banks at the
market rate of exchange. |
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Can remittances be sent into India otherwise than
through the medium of a bank in the country of residence of the
remitter? |
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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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Can Exchange Houses draw drafts in foreign
currencies? |
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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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Can NRIs remit funds through Exchange Houses for
investment in Government securities, National Savings Certificates
and Units of Unit Trust of India? |
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Yes. |
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Can NRIs remit funds through Exchange Houses for
investment in shares/debentures of Indian companies? |
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Yes, subject to general/specific permission of
Reserve Bank for such investment. |
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Can NRIs send drafts issued by Exchange Houses for
acquisition of residential flats in India? |
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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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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? |
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Yes. |
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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? |
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Yes. |
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Can NRIs take out of India precious stones or
jewellery purchased by them during their visit to India? |
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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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Can assets held in India by NRIs prior to their
becoming non-resident be repatriated outside India? |
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No. |
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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? |
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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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Can NRIs settle their hotel bills in India in Indian
rupees? |
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Yes. |
