NRI Taxation

FAQ

Australian Tax Compliances

» Incorporation – Business structuring

  • Subsidiary company
  • Holding company
  • Independent company
  • Inter dependent company
»  Helping to lodge your tax returns
»  Investment to/from Australia
»  Australian companies set up business in India
»  Indian companies set up business in Australia
»  DTAA Consultancy
»  Transfer Pricing Consultancy
»  Book keeping services
»  SMSF Audit
»  Other statutory compliance like GST/FBT
»  Repatriation of fund investment in India/Australia
»  Identify right partners to do business in India/Australia

Our International Consultants- Zimsen Partners

We are proactively identifying services firm in Australia who share our  values, are focused in Small to Medium Enterprise Segment and have an  in depth understanding of the business culture and business  requirements in Australia. We then enter into a memorandum of  understanding where following services are provided.

  • Assisting clients of our associate firm wishing to undertake investment  and business activities in Australia.
  • Associate offices assisting our clients in Australia with scoping of and  undertaking investment and business activities in Australia.
  • Facilitating training program for our team members in Australia. This  assists our team with knowledge and expertise in compliance  requirements, business and investment opportunities in Australia.

We currently have following associate offices:

Australia

Zimsen Partners
Fireways Business Centre
7 Keysborough Close
Keysborough, Vic 3173
Ph: 03 97986622
Mobile: 0459 997 890
Email: VianyNAB9@hotmail.com

USA Tax Compliances

Tax return preparation and other compliance services are an essential part of the US tax practice. Our teams of tax advisors include qualified CPAs, CAs and other trained professionals who have a special expertise in dealing with the peculiar tax situations of U.S. citizens living in India and the Indian citizens who work in U.S.

Our firm provides personalized and comprehensive tax planning, compliance and consulting solutions to help you meet your goals.

We offer the following Services:

For Non-Corporate

Non Resident Indian(NRI)/US Citizen in India
  • Filing of Income Tax returns
    Along with filing taxes in India, we also offer services in the USA. We help in streamlining the procedure between both the countries.

    With the introduction of mutual contracts between India and USA (like the FATCA) it is of great importance to keep a track of this entire procedure. We help in either communicating with your existing CPA or refer with one of our own.

  • Minimizing Double taxation between 2 countries
  • Refund process
  • Filing of Income tax returns
  • Tax planning
  • Foreign national working in India Rules/Regulations

For Corporate

  • Corporate Returns
  • Computing Book / Tax Differences
  • Compliance with US regulations and US GAAP
  • Advising for Minimizing Double Taxation
  • Transfer pricing
Singapore Tax Compliances

As per The Singapore companies Act, Companies must file its Annual Return within 1 month after the AGM else penalty will be levied. In order to avoid such penalty it is advisable to consult tax experts to guide you through the process of filing your corporate tax return.

Our Services Include:
  • Filing of Estimated chargeable Income within three months of Company's financial year end
  • Arrangement of installments payment for tax liability with Inland Revenue Authority of Singapore (IRAS)
  • Preparing and submitting Tax computation with supporting tax schedules
  • Filing of Income Tax returns (Form C)
  • Replying to IRAS queries on behalf of client in respect to Company Tax matters
  • Advising about the Double tax benefits.
  • Personal Income Tax:

Human Capital is recognized to be the most important asset of any business and our team of professionals is dedicated to providing comprehensive tax solutions to our Clients. Our services include:

  • Tax Planning for inbound and outbound individuals
  • Developing tax efficient remuneration packages
  • Developing Tax equalization policies
  • Advising on equity related compensation schemes
  • Preparation of individual income tax returns
  • Assisting in drafting objections and addressing queries raised by IRAS

GST compliance:

GST is an indirect tax, similar to VAT. If you are a GST registered person, you are required to submit to the Comptroller of Income Tax, a Form GST F5 (GST Return), every monthly or quarterly. You must submit the completed Form GST F5 not later than one month after the end of the prescribed accounting period to which the return relates

Withholding tax services:

Singapore has implemented a withholding tax law (on certain types of income) to ensure the collection of tax payable to non-residents on income generated in Singapore. The tax withholding does not apply to Singapore resident companies or individuals. Under the law, when a payment of a specified nature is made to a non-resident company or individual, a percentage of the payment has to be withheld and paid to Income Tax Authorities. The amount withheld is called the withholding tax.

  • Tax Planning
  • Singapore Tax Structuring and Planning
  • Tax planning and advisory (tax incentives and exemption)
  • Cross-border Corporate and Personal Tax Planning
  • Trust and Estate Planning
  • Other Services
  • Developing tax efficient remuneration packages
  • Developing Tax equalization policies
  • GST advisory and review
  • Updating clients on Tax Law Amendments
  • Preparation of Supporting Schedules for tax computation
  • Assisting in drafting objections and addressing queries raised by IRAS
Income Tax Filing

Importance of Filing Tax Returns
An NRI is usually taxed at source on a transaction he enters into during the year. But in actual, the tax liability for the year is computed in accordance with the provisions of the act and that amount is generally lower than the tax already paid. So effectively by not filing the tax return, the NRI assessee loses out on the differential amount.

In India

What we Offer?

  • Audit of Documents
  • Preparation of a Tax Computation Report
  • Filing of Taxes
  • Processing of Refund and other compliances.

In US

What we Offer?

    • Assistance in streamlining the procedure between India and USA.
    • Assistance in FATCA reporting
Capital Gains Package

We at B.C. Shetty & Co, offer a complete one stop solution to all Capital Gains related queries.

What we offer?

Pre-Sale Procedures

  • Tax deduction and Deposition on your behalf by the buyer.
  • Lower Tax Deduction Certificate
  • FEMA Guidelines

Post-Sale Procedures

  • Computation of Capital Gains
  • Repatriation of Funds and CA Certification
  • Income tax Filing
FEMA Compliance

Individuals and Corporates often find it challenging to comply with various provisions with the given stipulated time. We at B.C. Shetty  & Co, provide a complete solution for all challenges.

What we Offer?

  • Compliance with FDI
  • Issue of Statutory certificates under FEMA
  • Transfer of Shares from Indian Resident to Non-Resident
  • Other advisory services
Bank Accounts

What we Offer?

  • Advisory services on Nature of Account advantages
  • Advise on Repatrability
Tax Saving Options

What we Offer?

  • Save Tax arising on sale of Capital Asset- Evaluating various Investing Options to minimize Taxes
  • Advise on Investment in Indian Equities
What are all the conditions to be fulfilled to qualify as an NRI?

It depends on how many days Individual is resident in India
From a taxation point of view, Individual can either be a Resident or a Non Resident.
Further, as a Resident, he can either be Resident and Ordinarily Resident or Resident Not Ordinarily Resident.

To be Resident, he need to fulfill any 1 of the following 2 basic conditions under section 6(1):
regarding the time spent in India during the previous Financial Year (01 April to 31 March)

Condition

Status

1

He is not in India for 182 days or more during the relevant previous year.

If yes, then he is a non-resident. (so check the next condition.)
2

He is not in India for 60 days or more during the previous year and he is not in India for 365 days or more during the 4 years prior to the previous year.

If yes, then he is a non-resident.

There are a couple of exceptions to the rule given above.

The period of 60 days mentioned above becomes 182 days in case of a Citizen of India who:

Leaves India in any previous year as a member of the crew of an Indian ship or

Leaves for the purpose of employment outside India; or

is a Citizen of India, or a person of Indian origin, and being outside India, comes on a visit to India in any previous year.

So, to be resident in India, he has to satisfy any one of the above two basic conditions. If he don't satisfy any of these conditions; he qualify as a Non Resident Indian (NRI).

To be Ordinarily Resident in India, Individual has to meet both of the following conditions regarding the previous financial year:

Condition

Status

1

He is non-resident, as per the above provisions, for at least 9 out of 10 previous years prior to the previous year under consideration.

If yes, he is RNOR

2

His stay in India during the 7 previous year prior to the previous year under consideration should be 729 days or less

If yes, he is RNOR

What is the tax incidence on income earned in India, or income earned abroad, for NRIs?

As an NRI, a common question you may have is whether the income you earn abroad taxable in India.

Your taxation for a particular year depends upon your residential status in that year.

The Incidence of tax for different tax payers is summarised as below:

Residential Status

Indian Income

Foreign Income

Resident and ordinarily resident (ROR)

Taxable

Taxable

Resident but not ordinary resident (RNOR)

Taxable

Not Taxable

Non-Resident (NR)

Taxable

Not Taxable

Indian Income means income which is received in India OR accrues or arises in India.

Foreign Income means income which is not received in India AND does not accrue or arise in India.

What is the taxation of dividend income?

Dividends declared by equity-oriented funds (i.e. mutual funds with more than 65% of assets in equities) as well as debt-oriented mutual funds (i.e. mutual funds with less than 65% of assets in equities) are tax-free in the hands of NRI investor.

However, a dividend distribution tax DDT (which varies for individual and corporate investors) is to be paid by the mutual fund on the dividends declared by them.

When it comes to shares, dividends distributed by all domestic companies are exempt from tax in the hands of shareholder as the same are taxed as DDT.

But note, dividends received from foreign companies are taxable in the hands of shareholder as the foreign companies are not liable to DDT

What benefits are available to NRIs under the Act?

The following income is exempt from taxation for NRIs:

1. Interest on notified securities or bonds and premium on redemption of such securities

2. Interest on Non Resident External rupee account (NRE account) / Foreign Currency Non Resident (FCNR) Accounts Interest on notified saving certificates subscribed in foreign currency by an Indian citizen/person of Indian origin Income from units of Unit Trust of India ('UTI') acquired in foreign exchange by Indian citizen/person of Indian origin.

3. Interest on non resident non repatriable ('NRNR') Deposits and other securities, bonds, savings certificates notified Interest from notified bonds (7 year dollar bonds issued by the state Bank of India notified) purchased in foreign exchange, exemption continues even after person becomes resident Interest paid by scheduled banks on RBI approved foreign currency deposits

What are the Income Tax Concessions available to NRIs?

NRIs are granted a special benefit by way of an option of being taxed at concessional tax rate of 20%

as regards investment income and 10% as regards long term capital gains arising from specified assets.

Is there any exemption available to NRIs from long term capital gains? If yes, what are the conditions?

Yes, long term capital gains from transfer of foreign exchange assets (i.e. specified assets referred to above, acquired in convertible foreign exchange) are exempt proportionately, provided the net consideration (net of expenses) is entirely or partly invested in specified assets (as stated above) within a period of six months from the date of such transfer. However, the amount so exempted becomes again chargeable to tax if the new asset is transferred or converted within a period of three years from the date of its acquisition.

What are the benefits of Double Taxation Avoidance Agreement for NRIs?

India has entered into Double Tax Avoidance Agreements (DTAAs) with various countries. Taxability of Indian income for non residents is decided as per the provisions of these DTAAs or as per the Indian Income Tax Act, whichever is more favourable to you.

Most of these DTAAs contain provisions for lower rates of tax in case of dividend, royalties, fees for technical services etc

Are NRIs required to file income tax returns in India?

If you have a tax obligation in India, the domestic tax laws of India requires that you file your IT Return.

You may need to file your Returns in India under the following circumstances:

The India-sourced income exceeds the maximum amount chargeable to tax for the relevant previous year thus resulting in liability to pay taxes in India;

Claiming refund of taxes where taxes withheld are in excess of tax liability;

To enable you to claim DTAA benefits in the country of your residence i.e. the country in which your global income is consolidated and taxed.

To learn more view video