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The <keyword id="6354335" type="General" weightage="50" keywordseo="reserve-bank-of-india" source="Orion">Reserve Bank of India</keyword> (<keyword id="30067" type="General" weightage="100" keywordseo="rbi" source="Orion">RBI</keyword>) on Wednesday announced a series of measures to boost foreign exchange inflows. The central bank said that it has taken the steps in order to further diversify and expand the sources of <keyword id="6358355" type="General" weightage="20" keywordseo="forex" source="Orion">forex</keyword> funding so as to mitigate volatility and dampen global spillovers. India's foreign exchange reserves stood at $593.3 billion as on June 24, 2022, supplemented by a substantial stock of net forward assets, it said. The RBI has exempted incremental Foreign Currency Non-Resident Bank (FCNR-B) and Non-Resident (External) Rupee (NRE) deposit <keyword id="127684" type="General" weightage="20" keywordseo="Liabilities" source="Orion">liabilities</keyword> for computation of Net Demand and Time Liabilities (NDTL) for maintenance of cash reserve ratio (<keyword id="35038" type="General" weightage="20" keywordseo="crr" source="Orion">CRR</keyword>) and statutory liquidity ratio (<keyword id="46197" type="General" weightage="20" keywordseo="SLR" source="Orion">SLR</keyword>) by the banks. This will be effective from the reporting fortnight beginning July 30, 2022 with reference base date of July 1. "This relaxation will be available for deposits mobilised up to November 4, 2022. Transfers from Non-Resident (Ordinary) (NRO) accounts to NRE accounts shall not qualify for the relaxation," the RBI said. It also decided to temporarily permit banks to raise fresh FCNR(B) and NRE deposits without reference to the extant regulations on interest rates, with effect from July 7, 2022. This relaxation will be available for the period up to October 31, 2022. The RBI also relaxed rules relating to foreign portfolio investment in debt by allowing all new issuances of government securities (G-Secs) of 7-year and 14-year tenors, including the current issuances of 7.10 per cent GS 2029 and 7.54 per cent GS 2036, under the Fully Accessible Route (FAR). It also decided that <keyword id="6362476" type="General" weightage="20" keywordseo="investments" source="Orion">investments</keyword> by FPIs in government securities and corporate debt made till October 31, 2022 will be exempted from the macroprudential short term limit - not more than 30 per cent of investments each in government securities and corporate bonds can have a residual maturity of less than one year. These investments will not be reckoned for the short term limit till maturity or sale of such investments. As part of the macroprudential framework under the medium term framework (MTF), foreign portfolio investors (FPI) can invest only in corporate debt instruments with a residual maturity of at least one year. The central bank has decided that FPIs will be provided with a limited window till October 31, 2022 during which they can invest in corporate money market instruments viz., commercial paper and non-convertible debentures with an original maturity of up to one year. The FPIs can continue to stay invested in these instruments till their maturity/sale. These investments will not be included for reckoning the short term limit for investments in corporate securities. According to the RBI, Authorised Dealer Category-1 (AD Cat-I) banks can utilise overseas foreign currency borrowings (OFCB) for lending in foreign currency to entities for a wider set of end-use purposes, subject to the negative list set out for external commercial borrowings (ECBs). The measure is expected to facilitate foreign currency borrowing by a larger set of borrowers who may find it difficult to directly access overseas markets. This dispensation for raising such borrowings is available till October 31, 2022. As regards the external commercial borrowings (ECB) the RBI has temporarily increased the limit under the automatic route from $750 million or its equivalent per financial year to $1.5 billion. The all-in cost ceiling under the ECB framework is also being raised by 100 basis points, subject to the borrower being of investment grade rating. The above dispensations are available up to December 31, 2022. SEE ALSO : <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/science/environment/news/monsoon-rain-wreaks-havoc-in-himachal-and-karnataka-orange-alert-in-gujarat/articleshow/92704563.cms">Monsoon rain wreaks havoc in Himachal and Karnataka, orange alert in Gujarat</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/news/macbook-air-with-m2-chip-will-go-on-sale-from-july-15/articleshow/92704253.cms">Apple’s MacBook Air with M2 chip will go on sale from July 15, pre-orders starting July 8</a>

RBI tries to boost forex reserves by easing NRI deposit norms

<keyword id="3658" type="General" weightage="100" keywordseo="india" source="Orion">India</keyword>'s <keyword id="312455" type="General" weightage="20" keywordseo="EXTERNAL-DEBT" source="Orion">external debt</keyword> rose by 8.2 per cent to stand at $620.7 billion on March 31, 2022, compared to $573.7 billon on March 31, 2021. Out of this, 53.2 per cent of external debt was denominated in US dollars, the Indian rupee denominated debt was estimated at 31.2 per cent and was the second largest, according to the status report on India's external debt 2021-22, released by the <keyword id="47209" type="General" weightage="80" keywordseo="finance-ministry" source="Orion">Finance Ministry</keyword> on Monday. According to the report, external debt, as a ratio to GDP, fell marginally to 19.9 per cent as on March 2022 compared to 21.2 per cent of the year ago period. Foreign currency reserves, as a ratio to external debt, stood slightly lower at 97.8 per cent as on March 2022, compared to 100.6 per cent of the year- ago period. The long-term debt estimated at $499.1 billion, formed the largest chunk of 80.4 per cent, while the short-term debt, at $ 121.7 billion, accounted for 19.6 per cent of the total external debt amount. The short-term trade credit was predominantly in the form of trade credit (96 per cent) financing imports, the report added further. Commercial borrowings, <keyword id="11904949" type="General" weightage="80" keywordseo="nri" source="Orion">NRI</keyword>s deposits, short-term trade credit and multilateral loans, all accounted for 90 per cent of the total external debt. While NRI deposits marginally contracted during end-March 2021 and end-March 2022, commercial borrowings, short-term trade credit and multilateral loans, on the other hand, expanded during the same period. The rise in commercial borrowings, short-term trade credit and multilateral loans together was significantly larger than the contraction in NRI deposits, the report further said. SEE ALSO : <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/marriage-is-a-sacrament-says-centre-to-sc-in-restitution-of-conjugal-rights-case/articleshow/94017818.cms">Marriage is a sacrament says Centre to SC in restitution of conjugal rights case</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/ondc-is-a-population-scale-initiative-to-democratize-e-commerce-jm-financial/articleshow/94017558.cms">ONDC is a population-scale initiative to democratize e-commerce: JM Financial</a>

India's external debt rose 8.2% in 2021-22 to $620 billion

<keyword id="3658" type="General" weightage="100" keywordseo="india" source="Orion">India</keyword>'s external debt of $620.7 billion, as at end of March 2022, is sustainable and is being managed in a prudent manner, the <keyword id="144110" type="General" weightage="80" keywordseo="department-of-economic-affairs" source="Orion">Department of Economic Affairs</keyword>, under the Union Finance Ministry, said. In a recent report, the Department of Economic Affairs said the country's external debt continues to be sustainable and prudently managed. "As at end-March 2022, it stood at $620.7 billion, growing by 8.2 per cent over the level a year ago. External debt as a ratio to GDP (gross domestic product) was 19.9 per cent, while reserves to external debt ratio was 97.8 per cent," the report said. The sovereign debt at $130.7 billion rose higher by 17.1 per cent over its level a year ago, mainly because of additional allocation of special drawing rights (SDR) by the IMF during 2021-22. The non-sovereign debt, on the other hand, grew 6.1 per cent to $490 billion over the level as at end-March 2021. Experts had said that the external debt of $620.7 billion need not be a concern as $490 billion is non-government and the share of government is only $130.8 billion. Of the non-government debt, the share of non-financial corporations was about $250.2 billion. Further, the total debt of $620.7 billion as a percentage of gross domestic product (GDP) was 19.9 per cent and the debt service ratio was 5.2 per cent. Experts also said India cannot be compared with Sri Lanka that is in a severe economic crisis. The share of the central government in short term debt - maturing in a year's time- is only $7.7 billion out of the total $267 billion, experts had said. Commercial borrowings, <keyword id="11904949" type="General" weightage="80" keywordseo="nri" source="Orion">NRI</keyword> deposits, and short-term trade credit are the three biggest constituents of the non-sovereign debt, accounting for as much as 95.2 per cent. While NRI deposits declined by two per cent to $139 billion, commercial borrowings at $209.71 billion and short-term trade credit at $117.4 billion rose by 5.7 per cent and 20.5 per cent, respectively. According to the report, the debt vulnerability indicators continued to be benign. The debt service ratio fell significantly to 5.2 per cent during 2021-22 from 8.2 per cent during the previous year, reflecting buoyant current receipts and moderating external debt service payments. The debt service payment obligations arising out of the stock of external debt as at end of March 2022 are projected to trend downwards over the coming years. From a cross-country perspective, India's external debt is modest. In terms of various debt vulnerability indicators, India's sustainability was better than the Low-and Middle-Income Countries (LMICs) as a group and vis-a-vis many of them individually. According to the report, the US dollar continues to be the leading currency of denomination accounting for 53.2 per cent of the total as at end March 2022. Deposits in Non Resident (External) <keyword id="8182719" type="General" weightage="80" keywordseo="rupee-accounts" source="Orion">Rupee Accounts</keyword> (NR(E)RA), NRO accounts and <keyword id="725142" type="General" weightage="80" keywordseo="fpi" source="Orion">FPI</keyword> investments in Gsec and corporate bonds are among the components of India's external debt, denominated in Indian rupees. Indian rupee is the second leading currency of denomination with a lower share of 31.2 per cent of the total as at end-March 2022 than 33.3 per cent a year ago, reflecting erosion of outstanding FPI investments in G-Sec and corporate bonds ($50.1 billion from $51.4 billion as at end-March 2021) and balances under NRE accounts ($100.8 billion from $ 102.6 billion). Following the US dollar and the Indian rupee are the SDRs (6.6 per cent), the Japanese <keyword id="76265" type="General" weightage="80" keywordseo="yen" source="Orion">Yen</keyword> (5.4 per cent) and Euro (2.9 per cent). SEE ALSO : <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/delhi-liquor-shops-open-at-metro-station-premises/articleshow/93994229.cms">Delhi: Liquor shops open at Metro station premises</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/mistrys-body-to-undergo-autopsy-in-mumbai-pundoles-critical-but-stable/articleshow/93994156.cms">Mistry's body to undergo autopsy in Mumbai, Pundoles critical but stable</a>

India's external debt of $620bn is sustainable: Finance Ministry report

The <keyword id="6354731" type="General" weightage="50" keywordseo="state-bank-of-india" source="Orion">State Bank of India</keyword> (<keyword id="13222" type="General" weightage="100" keywordseo="sbi" source="Orion">SBI</keyword>) on Thursday said the <keyword id="6354335" type="General" weightage="50" keywordseo="reserve-bank-of-india" source="Orion">Reserve Bank of India</keyword> (<keyword id="30067" type="General" weightage="80" keywordseo="rbi" source="Orion">RBI</keyword>) should internationalise the Indian rupee. In a research report, the SBI said that the central bank should make a conscious effort to internationalise the rupee. "The Russia-Ukraine war and the disruptions to payments caused by it, is a good opportunity to insist on export settlement in rupee, beginning with some of the smaller export partners," the SBI said. The banking major also welcomed the RBI's measures relaxing the external commercial borrowing (ECB) and foreign portfolio investors (FPI) norms in the debt segment. According to the SBI, the global economy is volatile and on an average, energy, base metals, precious metals, and agricultural prices are now down 25 per cent from 52 week highs with markets anticipating a global slowdown morphing into a full-blown global recession. However, it is not clear whether such decline is the result of synchronised global rate actions or genuine fears of a recession looming large, the SBI report noted. In <keyword id="3658" type="General" weightage="50" keywordseo="india" source="Orion">India</keyword>, such global developments could have a direct bearing on the inflation trajectory in the second half of the current fiscal. "The RBI has been on course in normalising liquidity and net LAF (liquidity adjustment facility) is now close to the 1.5 per cent threshold non-inflationary level of liquidity. However, the problem is unspent Government cash balances that has now jumped to Rs 3.1 trillion," the report said. This effectively implies that core liquidity is still at Rs. 6.2 trillion as against Rs 8.3 trillion in the beginning of April. Additionally, the RBI has also announced a slew of measures to augment capital inflows by making <keyword id="11904949" type="General" weightage="50" keywordseo="nri" source="Orion">NRI</keyword> deposits more attractive. The SBI said the cumulative impact of all these measures will be beneficial for the external sector given the fact that total Non-Resident Indian (NRI) deposits exhibited an inflow of $3.2 billion in FY22 as against the inflows of $7.4 billion in FY21. On credit growth, the SBI said it expanded at Rs 2.6 lakh crores far outstripping bank deposit growth at Rs 1.04 lakh crore in the current year. The continued growth in bank credit is a matter of comfort and indicates that the Indian economy is still navigating through the turmoil rather well. SEE ALSO : <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/cryptocurrency/news/taiwanese-crypto-exchange-suspends-trading-in-rupees-after-tds-laws-kick-in/articleshow/92727555.cms">Taiwanese crypto exchange suspends trading in Rupees after TDS laws kick in</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/indian-metal-shares-surge-as-demand-hopes-build-after-chinas-220-billion-stimulus-plan/articleshow/92726640.cms">Indian metal shares surge as demand hopes build after China’s $220 billion stimulus plan</a>

It's the right time on export settlements in Rupee, SBI tells RBI

During the last three years, NRI deposits in Gujarat increased by 115% on economic vulnerability, depreciation of the <keyword id="6355302" type="ORGANIZATION" weightage="20" keywordseo="Rupee">rupee</keyword>, and attractive interest rates offered to NRIs by Indian banks. In year 2014-15, the deposits breached the Rs 50,000-crore mark as it increased to Rs 54,574 crore. Gujaratis comprise around 33% of the <keyword id="6402673" type="ORGANIZATION" weightage="20" keywordseo="Indian-Diaspora">Indian diaspora</keyword> worldwide. And in term of NRI deposits, Gujarat is among the top five states in the country. Jayesh Vithalani, an Ahmedabad-based financial consultant told The Economic Times, "The <keyword id="2928303" type="UNKNOWN" weightage="20" keywordseo="liquidity-crisis-in-Europe">liquidity crisis in Europe</keyword> and Africa prompted many NRIs to divert their funds to India." The financial daily also revealed that in the 2013-14, India’s apex bank RBI hiked the Libor rate for <keyword id="488485" type="UNKNOWN" weightage="20" keywordseo="Foreign-Currency-Non-resident">Foreign Currency Non-Resident</keyword> (<keyword id="91029" type="ORGANIZATION" weightage="20" keywordseo="FCNR">FCNR</keyword>) accounts by up to 350 basis points for the period of three to 10 years. Using this FCNR account, an Indian residing abroad can maintain a fixed deposit in foreign currencies and eventually earn regular interest. 

	According to RBI data, in 2014-15, there was a little over $115 billion (about Rs 7 lakh crore) in NRI accounts in India. And Gujarat accounted for 7.78% of the total amount.
 The ET report also mentioned a latest <keyword id="1578282" type="ORGANIZATION" weightage="20" keywordseo="State-Level-Bankers-Committee">State Level Bankers' Committee</keyword> (SLBC) data which showed that total bank deposits in Gujarat was Rs 4.9 lakh crore as of March 2015. Out of this amount, 11.13% or Rs 54,574 crore belong to NRIs. (Image: The Economic Times)

NRI deposits in Gujarat passes Rs 50,000-crore mark

Tightening noose on <a href="http://www.businessinsider.in/searchresult.cms?query=tax+evaders">tax evaders</a>, the government and the <a href="http://www.businessinsider.in/searchresult.cms?query=Income+Tax+department+">Income Tax department</a> will keep a closer eye on those with foreign assets and income, which even includes the negligible interest earned on bank deposits, small earnings while on a short trip abroad or even an online project that paid you in foreign currency. 
 
The government is very concerned about uncovering <a href="http://www.businessinsider.in/searchresult.cms?query=black+money+">black money</a> this year, therefore a minor mistake or a miss can amount to concealment of information, call for scrutiny and land you in big trouble. 
 
What to do then? It is very simple. Unless you are an <a href="http://www.businessinsider.in/searchresult.cms?query=non-resident+Indian+%28NRI%29">non-resident Indian (NRI),</a> all your income earned, including the ones earned outside India, has to be reported in your <keyword id="6354751" type="COMPANY" weightage="80" keywordseo="Income-Tax">income tax</keyword> return and is taxable according to the Indian I-T Act, 1961. 
 There is a common misconception that if the income has been taxed abroad, it does not have to be declared in India. “However, rule is all the foreign incomes, whether taxed outside India or not, will have to be declared by assessees if they are Indian residents," says <keyword id="3020242" type="UNKNOWN" weightage="60" keywordseo="Anand-Satyapanthi">Anand Satyapanthi</keyword>, co-founder <keyword id="3020243" type="UNKNOWN" weightage="60" keywordseo="Quicko">Quicko</keyword>.com, an online tax filing website. 
 
Some taxpayers are also unsure whether they must disclose bank accounts held abroad where low interest is being earned. The new ITR-2 however requires you to declare all <a href="http://www.businessinsider.in/searchresult.cms?query=foreign+bank+account%27s+holding+">foreign bank account's holding</a> including those where they are beneficiaries along with details such as account opening date, interest accrued during the year and schedule and fields number under which the same income is reported. 
 
"In cases of joint holdings, the spouse too needs to report the bank details and file the return in in India even though he or she may not have taxable income," says Kuldip Kumar, Leader (Personal Tax), PwC. 
 
Declaring and claiming deductions: Declaration of foreign income is made under the same heads as income earned in India--salary, property, business and professional income, capital gains and other sources. You merely have to convert it in terms of rupees and add it to the incomes under these heads. 
 "Conversation into rupees can be done using the SBI telegraphic transfer buying rate (TTBR) of the last day of the month before the month in which income is due. So, for converting salary earned in June 2014, use the TTBR of the relevant currency for May 2014," says <keyword id="905877" type="UNKNOWN" weightage="60" keywordseo="Archit-Gupta">Archit Gupta</keyword>, co-founder and CEO, <keyword id="2763190" type="UNKNOWN" weightage="60" keywordseo="Cleartax">Cleartax</keyword>.in. 
 
Relief under DTAA: If a tax has already been deducted on your foreign income, you are allowed to take credit of such taxes under the DTAA treaty . First step is to obtain a TRC or tax residency certificate that certifies your tax residency status. 
 
"Make sure that the correct DTAA ANIMISHA has been applied. You will have to determine that up to what percentage and subject to which provisions the relief is allowed, which can then simply be deducted from your total tax li ability," says Varun Advani, Chief Operations Officer, Makemyreturns.com. Consider taking professional help in case you are confused. 
 
 (Image: Indiatimes)

Tracking black money: Be extra careful in declaring you foreign assets this year!

The <a href="http://www.businessinsider.in/searchresult.cms?query=RBI&amp;sortorder=effectivedate">Reserve Bank of India</a> has allowed non-resident Indians to exchange the defunct Rs 500 and Rs 1,000 notes till June 30. This facility will be available through <keyword id="30067" type="ORGANIZATION" weightage="100" keywordseo="RBI">RBI</keyword> offices in Mumbai, Delhi, Chennai, Kolkata and Nagpur. 
 In a notification issued late night on Saturday, the RBI said that resident Indian citizens who failed to deposit <keyword id="2055438" type="UNKNOWN" weightage="100" keywordseo="old-notes">old notes</keyword> and were abroad between November 9 and December 30, 2016 can avail themselves of this facility up to March 31, 2017, and NRI citizens could do the same till June 30, 2017. 
 While there is no limit set for exchange when it comes to resident India, the limit for <keyword id="58225" type="ORGANIZATION" weightage="100" keywordseo="NRIs">NRIs</keyword> will be Rs 25,000 per person. This facility however can be availed once per individuals upon submission of identification documents and evidence showing that they were abroad during the period.

NRIs can still deposit old notes at RBI branches till June 30

Today is the last day to file your <keyword id="19948101" type="General" weightage="20" keywordseo="income-tax-returns" source="keywords">income tax returns</keyword> for <keyword id="21169488" type="General" weightage="20" keywordseo="AY-2024-25" source="keywords">AY 2024-25</keyword>, without having to pay a <keyword id="19899183" type="General" weightage="20" keywordseo="penalty" source="keywords">penalty</keyword>. Starting tomorrow, you will be able to file your <keyword id="19897621" type="General" weightage="20" keywordseo="itr" source="keywords">ITR</keyword>, but you'd have to forego several benefits, like not being able to choose the old tax regime, or paying a penalty of Rs 1,000 (if your annual taxable income is less than Rs 5,00,000). As per official data, about 6 crore ITRs have already been filed so far, and around 70% of them have opted for the new tax regime. But if you have left your ITR filing to the <keyword id="22611090" type="General" weightage="20" keywordseo="last-minute" source="keywords">last minute</keyword>, and will rush to meet the deadline today, here's a handy list of mistakes you should avoid while filing your ITR: 1. Do not miss out on reporting on your income from other sources. Generally, we only account for our salary, income from business/profession and capital gains (if any) while calculating our tax liability. However, there is one crucial segment we tend to forget-income from other sources. This includes interest income from your savings account, fixed deposits, recurring deposits and bonds. 2. Income from other sources also includes any dividend income you've received throughout the year through stocks, mutual funds, and any monetary gifts with value of over Rs 50,000 you've received from friends, acquaintances, or anyone but your relatives. Don't forget to account for those as well. <div type="Article" hostid="261" msid="111406215" title="Wondering which ITR form is right for you? Know all about it here" mstype="2" mssubtype="0"></div> 3. In case your total annual income exceeds Rs 50,00,000, you have to disclose all details of your properties, both movable and immovable under <keyword id="22611091" type="General" weightage="20" keywordseo="schedule-al" source="keywords">Schedule AL</keyword>. This should also include any liabilities you have incurred on these assets. 4. If you are an NRI, or an Indian holding foreign assets, you will have to share details of all your foreign income, assets, accounts and stocks under <keyword id="22334040" type="General" weightage="20" keywordseo="schedule-fa" source="keywords">Schedule FA</keyword>, along with your ITR. This needs to be done, irrespective of whether your income is taxable in India or not. 5. If you are filing your ITR as per your AIS (<keyword id="20776896" type="General" weightage="20" keywordseo="annual-information-statement" source="keywords">Annual Information Statement</keyword>) and see erroneous entries, don't ignore them. File your ITR as per Form 26AS, which is a condensed version of AIS, and Form 16A and B, which is provided by your employer (both previous and current). But remember to go back and flag errors in AIS, otherwise the IT department could penalise you for willful misreporting of your income. <div type="Article" hostid="261" msid="111402608" title="ITR filing: Documents you need to file your income tax return" mstype="2" mssubtype="0"></div> 6. Do not forget to e-verify your ITR within 30 days of filing it. If you do not do this, your ITR filing will be considered invalid. If 30 days have passed since you filed your ITR post today, it will be seen as filing ITR post deadline, and you'll have to pay a fine. So, get going on your ITR filing, right away!

Filing your ITR at the last minute? Don't make these mistakes

We have some good news for <a href="http://www.businessinsider.in/searchresult.cms?query=NRI">Non Resident Indians (NRIs)</a>, who are yet fidgeting over new policies that the Modi-government has introduced, can claim tax benefits as per the <a href="http://www.businessinsider.in/searchresult.cms?query=DTAA">Double Taxation Avoidance Agreement (DTAA)</a>. This agreement fundamentally happens between two countries to help their citizens avoid tax related hazards. 
 As per an Economic Times report, India has signed the <keyword id="96355" type="ORGANIZATION" weightage="20" keywordseo="DTAA">DTAA</keyword> with several countries. As per the agreement, the provision of the <a href="http://www.businessinsider.in/searchresult.cms?query=income+tax">Income Tax </a>applies to the assessee to an extent they provide maximum benefits to him during the assessment. Provisions of the DTAA prevail over the statutory provisions. <keyword id="58225" type="ORGANIZATION" weightage="20" keywordseo="NRIs">NRIs</keyword> residing in any of the DTAA countries can avail of tax benefits provided under DTAA by timely submission of the following documents. 
 
<keyword id="896047" type="UNKNOWN" weightage="20" keywordseo="Tax-Residency-Certificate">Tax residency certificate</keyword> (TRC): The Tax Residency Certificate (TRC) can be obtained from the government of the country where the NRI resides. The mandatory information for TRC is the name, status (individual, company, firm etc), address, nationality, country, tax identification number of the person in that country, tax status and period for which the tax certificate is issued. The TRC containing details mentioned above should be duly verified by the government of the country or the specified territory of which the NRI claims to be a resident for the purposes of tax. 
 
If the TRC is not submitted within the timeline required by the deductor, the deductor (eg. Bank) will deduct tax on NRO deposits at the presently applicable rate of 30.9%. 
 
Self declaration-cum-indemnity form: This form is to be submitted in the format prescribed by the particular bank. Information such as account number, country of residence, period for which TRC is submitted, tax rate applicable under DTAA needs to be mentioned in the form. 
 
Other documents: The NRI is required to submit a self attested copy of PAN card, passport and visa. If the passport has been renewed during the financial year, a copy of PIO card will also have to be submitted. 
 
 Image: indiatimes

NRIs, here’s how you can claim tax benefits under DTAA

Prime Minister <keyword id="6354477" type="PERSON" weightage="60" keywordseo="Narendra-Modi">Narendra Modi</keyword> Government’s stringent action towards <keyword id="6356023" type="UNKNOWN" weightage="80" keywordseo="Black-Money">black money</keyword> is forcing many wealthy Indians to migrate to Dubai and Singapore. 
 
According to informal email and text message exchanged by traders in Mumbai’s financial markets, many Indians are exploiting loopholes in foreign exchange laws. 
 
A leading tax professional told Economic Times that many of these people with undisclosed offshore bank accounts were using their contacts and arranging job appointment letters from companies in countries like the UAE and Singapore. 
 
According to Foreign Exchange Management Act (FEMA), Indian citizens employed abroad are considered non-residents. As per income tax law, such persons are required to stay out of India for at least 182 days in a financial year to claim non-resident status. 
 
When declared as a NRI, they don’t have to disclose foreign assets to Indian tax authorities. 
 
According to text messages, 80,000 Indians have applied for residency certificate in Dubai and other nations. 
 
Though employers and companies do exist, the persons receiving the letters have no intention to join the firms as employees. All required is a job offer letter which would be used to claim residency status in the respective countries. 
 Modi has promised to bring back <keyword id="670864" type="UNKNOWN" weightage="80" keywordseo="Black-money-stashed-abroad">black money stashed abroad</keyword>. Although there is no official estimate of the amount of money illegally deposited abroad, as per a Washington-based think-tank India suffered $344 billion in illicit fund outflows between 2002 and 2011.

Wealthy Indians are exploring ways to hide black money.  Know how

<ul><li>India is sitting on a demographic time bomb. People over the age of 60 are expected to account for 25% of India’s <keyword id="48933" type="PERSON" weightage="20" keywordseo="population">population</keyword> by 2050.</li><li>The concept of <keyword id="2995734" type="PERSON" weightage="20" keywordseo="senior-living">senior living</keyword> has been gaining traction in recent years owing to the migration of Indians and the breakdown of the joint family model. </li><li>However, most senior care options are mostly geared towards the upper-middle class. The low-cost options leave a lot to be desired. </li></ul> My father was 64 when he had his first heart attack in September 2015. He downplayed the pain and told my brother and I, who were 23 years old at the time, that it was just acidity. We didn’t know better. Four days later, on his 65th birthday, the heart attack led to a stroke, which affected a small part of his brain that dealt with his speech and comprehension. Following his discharge from the hospital, my brother and I worked out an arrangement with our respective employers wherein we worked from home on alternative days so we could take care of him. My father slowly regained his verve and became somewhat self-sufficient by the end of 2015. However, he suffered another stroke and an epileptic seizure in April 2016. After my father suffered a third stroke in February 2017, the idea of putting him in an assisted living facility was floated by my uncle. My brother was living in Bombay by this point and I was spending more time at work so it seemed like the sensible thing to do. The concept of senior living, while relatively new to India, has been gaining traction in recent years and with good reason. There were 103.8 million citizens above the age of 60 in India in 2011, according to the Ministry of Social Justice and Empowerment, and the number is expected to reach 143 million by 2021 and 173 million by 2026. Concurrently, as nuclear families are in vogue, the safety net afforded to old people by the joint family model is disintegrating. India has also seen a wave of migration in the last few decades as young people have gone to big metros as well as foreign countries in search of better opportunities, leaving their parents behind. More and more old people are living alone- which makes them vulnerable to <a href="https://www.firstpost.com/india/increase-in-crimes-against-senior-citizens-in-chennai-forces-them-to-shift-to-retirement-homes-3109622.html">crime</a> and depression. And the problem will only get worse. People over the age of 60 are expected to account for 25% of India’s population by 2050. India’s emerging market counterparts like Brazil and China are also sitting on a similar demographic time-bomb resulting from decades of exponential economic growth, improved health outcomes and stretched budgets. While Western countries like the US and UK started laying the foundational groundwork for their senior care industries in the latter half of the 20th century, BRIC countries only began developing an industrial framework to address the problem in the recent past - that too, by encouraging foreign participation and co-opting the western model of senior living which marries real estate development with at-home care. The Senior Care Act The Indian government has made some noticeable interventions but they haven’t produced the desired results. For example, in 2007, there government of India passed the Maintenance and Welfare of Parents and <keyword id="20566" type="COMPANY" weightage="20" keywordseo="senior-citizens">Senior Citizens</keyword> Act. The act requires children to take care of their parents in <keyword id="6378960" type="UNKNOWN" weightage="20" keywordseo="old-age">old age</keyword>. It also mandates the establishment of old age homes by state governments. The act has failed on both fronts. Senior citizens neither have the knowledge of their rights or the will to take their children to court. As of mid-2017, only 360 homes had been built by state governments with central funding under the Integrated Programme for Older Persons (IPOP), according to data from the social justice ministry. India’s private sector takes the lead However, India’s private sector has spotted the gap in the market, taking inspiration from the US’s $300 billion senior living industry. By 2013, India had 30 assisted living projects in India, with another 30 in the pipeline, according to Jones Lang Lasalle, a commercial real estate firm. There are a number of developers building “retirement resorts” in North India to cater to the high-end segment. Max India, a <keyword id="6354525" type="UNKNOWN" weightage="20" keywordseo="healthcare">healthcare</keyword> giant, has a 200-block senior living facility called Antara on the outskirts of the city of Dehradun. Pitched as the confluence of lifestyle and life care, the community boasts state-of-the-art medical facilities with in-house doctors as well as a a fitness centre, which includes a gym, spa and a swimming pool. Prices for a property here start at a cool $300,000. However, the senior living trend actually took flight in south Indian states like Tamil Nadu, Karnataka and Andhra Pradesh, where a large number of non-resident Indians (NRI) hail from, before spreading to the North. In recognition of their high purchasing power, Covai Care, a Coimbatore-based developer, launched S3 Retirement Homes, one of India’s first retirement projects, according to its general manager, S Prabhakar, in 2007 to cater to this market. While the senior living market has doubled since then, says Prabhakar, it is still in a nascent stage. Covai Care primarily offers three forms of care facilities for its residents- assisted care for senior residents, palliative care for terminally ill patients and memory care for patients with dementia or Alzheimer's with properties in Bangalore, Mysore, Coimbatore and Pondicherry. The properties don’t come cheap either. With prices ranging from $60,000 to $150,000 depending on size, residents also have to pay around $270-$300 a month for medical and maintenance fees. Prabhakar maintains that these costs are in line with the average cost of living for these patients anyway. He also expects the demand for these properties to be robust, citing the increase in life expectancy and growing trend of senior citizens who crave independence. The middle ground India is striving to create cheaper offerings for the middle class too. Arun Gupta, the chief executive of Age Ventures India (AVI), a non-profit organisation that petitions builders to develop properties, echoes Mr Prabhakar’s beliefs about the industry’s prospects. “The senior citizen population is growing at a rate of 3.8% per annum, while the overall population of India is growing at 1.8%” he says. For a small consulting fee, AVI works with developers to build elder care homes and communities by sharing best practices and identifying project locations. These homes are modestly priced, with a 1BHK unit starting at $22,500 at the organisation’s first project in Bangalore. Ashiana Housing, a Delhi-based real estate developer, pitches its retirement communities to the middle class in tier-1 and tier-2 cities . The price ranges between $45,000 million and $100,000 for the units, and that demand for them follows the same pattern as the housing market. Amit Dogra, the sales manager for Ashiana's senior living segment, doesn’t think much of India’s cultural aversion to old age homes. “98% of our residents chose senior living independently. They were not forced by their children.” Abhishek Mohanty, a facility design and marketing consultant at Epoch Elder Care, feels otherwise. “Social stigma, especially from relatives, is more of a problem than affordability”, he says. “This is why we target higher-net-worth individuals and NRIs as they are more open to the idea of senior living and are willing to spend the money”. Founded in 2011, Epoch Elder Care originally started as a provider of home care services and personnel before transitioning into the assisted living space. It follows a rental model, entailing a one-time deposit and monthly rental fee, which is better suited to middle class customers. Epoch has three retirement homes with monthly fees of $1,800 for short-term single occupancy guests and $1,350 for long-term guests, which excludes the rather-high 18% GST rate on senior living. Around 60% of Epoch’s residents are dementia patients, which limits the amount of residents per facility. Mohanty is optimistic about his company’s prospects given the country’s increasing awareness about dementia and the growing number of senior citizens. By 2022, Epoch plans to have as many as 12 facilities, with an average of around 50 guests each, operating all over India. The sense of stigma attached to senior living, while declining, is still a consideration for the relatively well-off. Rachna (name changed), a corporate lawyer in her 40s, says that the decision to send her father to a retirement home outside Gurgaon last year was not an easy one. “My friends felt that I was relinquishing my sense of duty,” she said, “and my father likened the experience to being sent to jail”. However, she feels that it was the best option since she and her husband had full-time jobs and two teenage children to take care off. Now, her father, a former stroke victim and arthritis patient, benefits from round-the-clock care and companionship in the facility. No respite at the bottom Senior living seems to be an effective solution for people who can afford it, but for the hundreds of millions that can’t, their options are few and far between. At the lower end of the spectrum, the government-operated old age homes, which feature dormitories instead of rooms, are understaffed and in a deplorable condition, according to Matthew Cherian, the chief executive of HelpAge India. There are a number of cheaper nursing homes that are run by private owners, however quality is still an issue given the lack of government-imposed industry standards. And some of these also operate without licenses and accreditation. In 2012, <a href="https://timesofindia.indiatimes.com/city/pune/68-nursing-homes-dont-have-licences/articleshow/13238672.cms">68 nursing homes </a>were found to be operating illegally in Pune. A variety of non-profit organisations like HelpAge India also run and support old age homes, but the supply of beds in such homes is drastically outweighed by the number of people that need them. As I write this, it’s been more than 13 months since my father’s last stroke. He’s in good spirits. He’s been eating well and going for walks every evening with other senior citizens in our gated community in Gurgaon. He has moved past his initial resistance and softened his stance towards senior living facilities, in anticipation of my eventual departure from home. “If I have to go one day, I’ll go”, he says. “Maybe I can get my friends to come with me too”. If only other Indians like him had the same option.

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