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Have you filed your <keyword id="19948101" type="General" weightage="20" keywordseo="income-tax-returns" source="keywords">income tax returns</keyword> till now? If not, don't forget that <keyword id="22458495" type="General" weightage="20" keywordseo="July-31st" source="keywords">July 31st</keyword> is the last date to file your ITR, without paying any penalties. However, if you miss this <keyword id="19938467" type="General" weightage="20" keywordseo="deadline" source="keywords">deadline</keyword>, you can still file your ITR by <keyword id="19993002" type="General" weightage="20" keywordseo="December-31st" source="keywords">December 31st</keyword>, 2024. But then, you will have to pay a hefty penalty! To avoid any hassles, here's a handy guide you can use to bookmark all the dates associated with <keyword id="19942833" type="General" weightage="100" keywordseo="ITR-filing" source="keywords">ITR filing</keyword> this year 13 days from now, i.e., 31st July 2024 is the last date for salaried individuals, non-resident Indians (<keyword id="19918875" type="General" weightage="20" keywordseo="NRIs" source="keywords">NRIs</keyword>), Hindu undivided families (HUF) and other entities to file their income tax returns. This date, unless extended, is final for those do not require a prior audit of their books of accounts. Per experts, a date extension seems unlikely, given that there has been no formal notification from the Finance Ministry as yet. Remember that if you are a salaried individual and do not file your ITR by July 31st, you could face serious consequences, which include: <ul><li>In case your net annual taxable income is up to Rs 5,00,000, you will have to pay a fine of Rs 1,000 while filing your belated return. </li><li>If your net annual taxable income exceeds Rs 5,00,000, you will have to pay a fine of Rs 5,000.</li></ul>However, the biggest loss in case of filing belated ITR would be the inability to opt for old tax regime. All ITR filed belatedly, or after July 31st, will automatically be processed under the new regime. In case you have significant investments in ELSS, <keyword id="19919089" type="General" weightage="20" keywordseo="nps" source="keywords">NPS</keyword>, PPF under Section 80C, HRA exemptions, your tax liability could be significantly higher under the new tax regime, since it does not offer many exemptions and deductions generally available under the old regime. For businesses which require an audit before filing their ITR, 31st October 2024 is the last date to file ITR, sans any penalties. <h2>Filing revised/belated ITR </h2>The last date for filing a belated or revised ITR is 31st December. You can file a revised ITR in case: <ul><li>You have unintentionally missed out on reporting any significant income</li><li>You missed out on claiming tax-saving deductions in your initial ITR</li><li>You have opted for the wrong ITR form, and want to change it</li><li>You receive a notice from the IT department highlighting discrepancies in your original ITR</li></ul>Note that you don't have to pay any penalties while filing a revised ITR. And while not advisable, you can revise your ITR multiple times. Once a revised return is filed, the IT department considers it as your final ITR. You can also file an updated return within 2 years of the relevant assessment year (in this case 2023-24). This means that the last date to file your updated return for this cycle will be March 31st, 2027. But note that you cannot revise your updated returns i.e., it can be filed only once for any particular assessment year. Also, you will have to pay additional tax equal to 25% of the total of tax and interest payable, if you file the updated return before 12 months of the end of relevant assessment year. In case you file your updated return after more than 12 months, but less than 24 months from the relevant assessment year have passed, your additional tax payable would be 50% of the aggregate of tax and interest payable.

Important dates to remember while filing your ITR this time!

<ul><li>Demand for bigger homes has seen a spurt in the <keyword id="9208211" type="General" weightage="20" keywordseo="post-covid" source="Orion">post-Covid</keyword> era. </li><li>In fact, 77% of the NRIs are looking to buy bigger homes, while 23% want 4 BHK homes. </li><li>Housing sector has seen a 15-20% increase in demand by <keyword id="11904949" type="General" weightage="50" keywordseo="nri" source="Orion">NRI</keyword> in the first nine months of 2022 compared to the corresponding period in 2021.</li></ul>Many non-resident Indians (NRIs) are looking to come back to their motherland keeping in mind the ongoing economic situation due to the Russia-Ukraine war and thus, are actively searching for housing properties in India. "Despite the worst of Covid-19 now in the past, NRIs have clearly not forgotten the uncertainties associated with living in a foreign country during a major pandemic. Securing homes in India became, and remains, a priority for Indians everywhere,” said <keyword id="266974" type="General" weightage="80" keywordseo="prashant-thakur" source="Orion">Prashant Thakur</keyword>, Sr. Director &amp; Head of Research, ANAROCK Group. In fact, 77% of the NRIs are looking to buy bigger homes, while 23% want 4 BHK homes and 54% want to buy 3 BHK properties, according to CII-ANAROCK Consumer Sentiment Survey. The survey got 55,000 responses from NRIs, out of which 7% were currently stationed in the US, Canada, Gulf, Europe, and various Asian countries. Demand for bigger homes has seen a spurt in the post-Covid era. “While schools and offices have reopened, the desire for extra living space remains undiminished. Many of the large IT companies and IT-driven startups now operate on a hybrid work model,” says the report. Notably, more NRIs prefer investing in Indian real estate over stocks, mutual funds, gold, and fixed deposits. Another reason why NRIs prefer bigger homes is the favourable exchange rate. The percentage of NRIs looking for 2 BHK properties has declined from 40% in 2019 (pre-Covid) to 22% in 2022 (post-Covid). "As per <keyword id="7746659" type="General" weightage="50" keywordseo="anarock-research" source="Orion">ANAROCK Research</keyword>, the Jan-Sep period of 2022 saw approx. 2.73 lakh homes sold in the top 7 cities," said Thakur. The real estate market has overall witnessed a gradual recovery after successive Covid-19 lockdowns. The demand further boosted during the festive season despite higher interest rates and biting inflation. <cmsannotation type="cmsannotation" annotationid="Bengaluru remains as one of the top choices" comment="subhead" text="Bengaluru remains as one of the top choices"><keyword id="6354321" type="General" weightage="80" keywordseo="bengaluru" source="Orion">Bengaluru</keyword> remains as one of the top choices</cmsannotation> Bengaluru has been one of the top three choices among NRIs to invest in the housing sector before, during and after the Covid pandemic. Other than Bengaluru, Hyderabad and NCR are the top choices for the NRIs this year. At least 60% of the respondents agreed to be looking for properties in Hyderabad, 20% were eyeing the NCR region and 18% were preferring Bengaluru. Last year, Bengaluru, Pune and Chennai were the top picks for most NRIs. While 63% of the respondents want premium properties priced between ₹90 lakhs to ₹1.5 crore, 59% NRIs preferred luxury properties priced between ₹1.5 - 2.5 crore. Overall investment in the Indian housing by NRIs has ballooned from 55% in the pre-Covid year (2019) to 71% this year. "On an average, NRIs account for 10-15% of homes sold in any given quarter,” Thakur added. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/international/news/canada-facing-labour-shortage-what-does-it-mean-for-indian-immigrants/slidelist/95251236.cms">Canada facing labour shortage — what does it mean for Indian immigrants</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/reliance-capital-bidders-flag-off-multiple-legal-issues-involving-rs-20000-crore-liability/articleshow/95248934.cms">Reliance Capital bidders flag off multiple legal issues involving Rs 20,000 crore liability</a>

More NRIs are keen to buy bigger homes in the country, says report

<ul><li>NRIs can now pay utility bills on behalf of their families in <keyword id="3658" type="General" weightage="100" keywordseo="india" source="Orion">India</keyword>. </li><li><keyword id="30067" type="General" weightage="80" keywordseo="rbi" source="Orion">RBI</keyword> has enabled NRIs to make bill payments using the Bharat Bill Payment System which has 20,000 billers on it. </li><li>Charges and convenience fees to be uniform across the platform and better complaint redressal mechanism.</li></ul> Sitting in the comfort of their homes, <keyword id="324391" type="General" weightage="20" keywordseo="non-resident-indians" source="Orion">non-resident Indians</keyword> will soon be able to pay utility bills on behalf of their parents in India. The <keyword id="6354335" type="General" weightage="50" keywordseo="reserve-bank-of-india" source="Orion">Reserve Bank of India</keyword>’s Governor <keyword id="6359111" type="General" weightage="50" keywordseo="shaktikanta-das" source="Orion">Shaktikanta Das</keyword> on Friday announced that the central bank would enable the Bharat Bill Payment System (<keyword id="6443838" type="General" weightage="80" keywordseo="bbps" source="Orion">BBPS</keyword>) to process inbound cross-border payments. Governor Das said that the Bharat Bill Payment System (BBPS) was an interoperable platform for standardized bill payments. He said, “It is now proposed to enable BBPS to accept cross-border inward bill payments. This will enable Non-Resident Indians (NRIs) to undertake bill payments for utility, education and other such payments on behalf of their families in India. This will greatly benefit the senior citizens in particular.” The bill payment system has made bill payments relatively easy for users in India. Currently, 20,000 billers are part of the system, and more than 80 million transactions are processed on a monthly basis. This will help senior citizens in India with children working abroad. The scope of offering has now been expanded to non-resident Indians too, who can now pay for children’s school fees and utility bills using this platform. The BBPS offers a reliable payment mechanism with predictable and uniform convenience fees across billers. Explains <keyword id="14143061" type="General" weightage="50" keywordseo="muralidharan-srinivasan" source="Orion">Muralidharan Srinivasan</keyword>, head of payments, APMEA Region, FIS, “NRIs will now be able to enjoy various offerings of BBPS such as a reliable bill payment experience, centralized customer grievances redress mechanism, and uniform customer convenience fee, while paying utility bills, education-related payments and other cross-border transactions.” The RBI has taken several measures to improve cross-border transactions, especially inbound. The central bank has been testing different models of cross-border payments through the regulatory sandbox route. In September 2021, the RBI received 27 applications from 26 entities, of which eight entities have been selected for the ‘test phase’. The entities began testing their products from the third week of September 2021 to offer a variety of cross-border payment solutions for Indians and NRIs. SEE ALSO : <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/enterprise/news/ransomware-a-growing-business-threat-for-organisations-in-the-new-normal/articleshow/93368022.cms">Ransomware: A growing business threat for organisations in the new normal</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/science/research/news/5-reasons-why-the-4-day-week-wont-work-according-to-an-economic-professor/articleshow/93363736.cms">5 reasons why the 4-day week won't work, according to an economic professor</a>

Now, NRIs can pay parents' utility bills and children's school fees in India

New Delhi, Feb 1 () Non-resident Indians not paying taxes in any foreign country will now be taxed in India, the Union Budget for 2020-21 has proposed.
 At present, if an Indian or a person of Indian origin managed his stay in India such that he remained a non-resident in perpetuity, he was not liable to pay tax on his global income in India.
 The Union Budget 2020 has now proposed to introduce a deeming provision that every Indian citizen who is not liable to tax in any other country, by virtue of his domicile or residence, shall be deemed as a resident of India. Consequently, his global income would be taxable in India.
 Tightening the residency provisions, the Budget also proposed to reduce the period of stay in India to 120 days from 182 days earlier for persons of Indian origin (PIOs) to be categorised as non-resident Indians (NRIs).
 "...In many cases we have found that some people are residents of no country in the world, they may be staying a certain number of days in different parts of the world. So... any Indian citizen - if he is not a resident of any country in the world - would be deemed to be resident in India, and then his worldwide income will be taxed," Revenue Secretary Ajay Bhushan Pandey said.
 Amending Section 6 of the I-T Act, the Budget proposed that "Notwithstanding anything contained in clause (1), an individual, being a citizen of India, shall be deemed to be resident in India in any previous year, if he is not liable to tax in any other country or territory by reason of his domicile or residence or any other criteria of similar nature".
 Reworking the definition of NRIs, the Budget document said that the I-T Act provides that an Indian citizen or a person of Indian origin shall be Indian resident if he is in India for 182 days in that year.
 "This provision provides relaxation to an Indian citizen or a person of Indian origin allowing them to visit India for a longer duration without becoming resident of India. Instances have come to notice where the period of 182 days specified in respect of an Indian citizen or person of Indian origin visiting India during the year is being misused.
 "Individuals, who are actually carrying out substantial economic activities from India, manage their period of stay in India, so as to remain a non-resident in perpetuity and not be required to declare their global income in India," said the memorandum to the Budget.
 Pandey said changes have been brought about in the Income Tax Act, which states that if an Indian citizen stays more than 180 days out of the country, he becomes a non-resident. 
 So we have made some changes there. Now, in order for him to become a non-resident he has to stay out of the country for 240 days, Pandey said.
 The Budget also proposes to rework the definition of "not ordinarily resident" in India, if the individual has been a non-resident in India in 7 out of 10 previous years preceding that year. Earlier for an individual to be considered "not ordinarily resident", he/she had to be a non-resident in India in 9 out of 10 years.
 Nangia Andersen Chairman Rakesh Nangia said, "Residency provisions for the purpose of taxation has been tightened, specifically for stateless persons, who are not liable to tax in any country or jurisdiction. This could impact non-resident Indians staying in countries such as UAE which does not impose income tax on individuals under local tax laws.
 Transaction Square Founder Girish Vanvari said, "These changes in definition would deter people from coming to India and some can even think of giving up Indian citizenship".
 Gopal Bohra of NA Shah Associates said at present, it is entirely possible for high net worth individuals to arrange his affairs in such a fashion that he would not be liable to tax in any other country and also not in India.
 The new provision "will adversely impact High Networth Individuals using the domicile mechanism to evade tax globally," he said. JD DP ANZ ANS
ANS

Non-taxpaying NRIs to be taxed in India: FM

New Delhi, Feb 2 () Finance Minister Nirmala Sitharaman on Sunday said that there is no intention to tax global income of NRIs and only income generated in India will be taxed.
 Following the Budget announcement on Saturday there was confusion about the tax liability of Non-Resident Indians (NRIs) on their global income. 
"What we are doing now is that the income of an NRI generated in India will be taxed here. If he's earning something in a jurisdiction where there is no tax, why will I include that into mine that has been generated there. 
 "Whereas if you have a property here and you have a rent out of it, but because you are living there, you carry this rent into your income there and pay no tax there, pay no tax here ... since the property is in India, I have got a sovereign right to tax," she said in a post Budget interaction with media. 
 "I am not taxing what you're earning in Dubai but that property which is giving you a rent here, you may be an NRI, you may be living there but that is revenue being generated here for you. So that's the issue," she added.
The Finance Bill, 2020 has proposed that an Indian citizen shall be deemed to be resident in India, if he is not liable to be taxed in any country or jurisdiction. 
 This is an anti-abuse provision since it is noticed that some Indian citizens shift their stay in low or no tax jurisdiction to avoid payment of tax in India, the finance ministry said in a statement.
"The new provision is not intended to include in tax net those Indian citizens who are bonafide workers in other countries. In some section of the media the new provision is being interpreted to create an impression that those Indians who are bonafide workers in other countries, including in Middle East, and who are not liable to tax in these countries will be taxed in India on the income that they have earned there. This interpretation is not correct," it said.
In order to avoid any misinterpretation, it is clarified that in case of an Indian citizen who becomes deemed resident of India under this proposed provision, income earned outside India by him shall not be taxed in India unless it is derived from an Indian business or profession, it added. DP CS MR
MR

No intention to tax global income of NRIs in India, says FM

New Delhi, Mar 4 () The government on Wednesday permitted NRIs to own up to 100 per cent stake in disinvestment-bound Air India. The decision comes at a time when the government is looking to sell 100 per cent stake sale in the national carrier. Union minister Prakash Javadekar said the Cabinet has approved allowing Non-Residents Indians (NRIs) to hold up to 100 per cent stake in Air India. Allowing 100 per cent investment by Non-Resident Indians (NRIs) in the carrier would also not be in violation of SOEC norms. NRI investments would be treated as domestic investments. Under the Substantial Ownership and Effective Control (SOEC) framework, which is followed in the airline industry globally, a carrier that flies overseas from a particular country should be substantially owned by that country's government or its nationals. Currently, NRIs can acquire only 49 per cent in Air India. Foreign Direct Investment (FDI) in the airline is also 49 per cent through the government approval route. As per the existing norms, 100 per cent FDI is permitted in scheduled domestic carriers, subject to certain conditions, including that it would not be applicable for overseas airlines. In the case of scheduled airlines, 49 per cent FDI is permitted through automatic approval route and any such investment beyond that level requires government nod. On January 27, the government came out witha Preliminary Information Memorandum (PIM) for Air India disinvestment. It has proposed selling 100 per cent stake in Air India along with budget airline Air India Express and the national carrier's 50 per cent stake in AISATS, an equal joint venture with Singapore Airlines. Under the latest disinvestment plan, the successful bidder would have to take over only debt worth Rs 23,286.5 crore while the liabilities would be decided depending on current assets at the time of closing of the transaction. This is the second attempt by the government in as many years to divest Air India, which has been in the red for long. RR NKD RAM RAM

Govt permits NRIs to own up to 100% stake in Air India

New Delhi, May 8 () Providing a relief to NRIs and foreign nationals stuck in India due to lockdown, the government on Friday said their stay in the country during the period will not be counted for the purpose of determining their residency status for taxation purpose. The nationwide lockdown since March 25 and cancellation of international flights to contain the spread of COVID-19 has forced non-resident Indians (NRI) and foreign nationals to prolong their stay in India. There were apprehensions that this extended stay could lead to these individuals becoming Indian residents as per Section 6 of the Income Tax Act. "Considering various representations received from people who had to prolong their stay in India due to lockdown and suspension of international flights, expressing concerns that they will be required to file tax returns as Indian residents, Finance Minister Nirmala Sitharaman today allowed discounting of prolonged stay period in India for the purpose of determining residency status," an official statement said. The Ministry further stated that as the lockdown continues during the financial year 2020-21 and it is not yet clear as to when international flight operations would resume, a circular excluding the period of stay of these individuals up to the date of normalisation of international flight operations, for determination of the residential status for the financial year 2020-21 shall be issued after flights are resumed. In a circular, the Central Board of Direct Taxes (CBDT) said in order to avoid genuine hardship in such cases, for the purposes of determining the residential status for 2019-20 of an individual who has come to India on a visit before March 22, 2020, and has been unable to leave India on or before March 31, 2020, his period of stay in India from March 22 to March 31, 2020, shall not be taken into account. In cases where such individuals have been quarantined in India due to COVID-19 on or after March 1, 2020 and has departed on an evacuation flight on or before March 31, 2020 or has been unable to leave India on or before March 31, 2020, his period of stay from the beginning of his quarantine to his date of departure or March 31, 2020, as the case may be, shall not be taken into account for determining residency status. Where the individual has departed on an evacuation flight on or before March 31, 2020, his period of stay in India from March 22, 2020 to his date of departure shall not be taken into account. The status of an individual whether he is resident in India or a non-resident or not ordinarily resident, is dependent, inter-alia, on the period for which the person is in India during a year. As per I-T laws, for 2019-20 fiscal, individuals staying in India for 182 days or more in a fiscal or 60 days or more in a fiscal and at least 365 days in the past 4 fiscals will be considered as resident of India for taxation purpose and accordingly his/her global income becomes taxable. "This is a much welcome and awaited circular, which takes cognizance of concerns of NRIs and other foreigners who arrived in India before March 22, 2020, but could not return on account of imposition of lockdown and suspension of international flights," Nangia Andersen Consulting Director Shailesh Kumar said. "Presently, this circular takes care of residential status only for FY 2019-20 and thus excluded period till March 31, 2020 only. One may expect a similar circular for FY 2020-21, providing exclusion of lockdown period for FY 2020-21 as well for determining the residential status," he added. JD RVK

Lockdown period not to be counted for determining residency status of NRIs, foreign nationals: CBDT 

With the 2019 Lok Sabha Elections fast approaching, the media is abuzz with elections and polling related topics. But there is a lot of misinformation about how NRIs can vote in the forthcoming elections. A few months back, the Lok Sabha passed a bill that allowed proxy voting by NRIs. The measure followed the concerns that NRIs also need the proxy voting facility to cast their votes in the same way the service personnel make use of this arrangement. The Ministry of External Affairs has estimated that over 3.10 crores of NRIs are living across different countries in the world. The Lok Sabha felt it was necessary to respect the contributions of these NRIs who are doing well in different parts of the globe and give them voting rights in India. While framing the rules that will allow the NRIs to vote through a proxy, the government said it will also ensure that the system is not misused by anyone. The EC cautions about fake news On its official website, the Election Commission has issued a warning not to believe the fake news being circulated in the media that the NRIs holding a valid Indian passport can vote online in the 2019 Lok Sabha Elections. It has confirmed that there is no online voting facility given to any category of voter as per the present state of things. How an NRI can vote? At present, there are two remote voting facilities available in India namely postal ballot and proxy voting. Postal ballot lets the voter vote via post. This facility is available to the armed forces personnel, electors facing preventive detention and those people on election duty. The proxy voting facility is at present made available for the armed personnel, police personnel and the government officials who are posted outside of India. This arrangement lets the concerned individual authorize another person living in his or her area to cast a vote on their behalf. The bill that wished to extend the proxy voting to NRIs was passed in the Lok Sabha, but could not get approved in the Rajya Sabha and hence got lapsed. Since India does not support online voting and hence the proxy voting bill could not come through successfully, the only way an NRI can vote during the upcoming elections is to personally visit the polling booth and exercise his or her franchise. Registering of overseas voters NRIs can vote in their hometown by visiting the polling booth personally on the date of polling after registering as an overseas voter. The form is available online at <a href="http://ecisveep.nic.in/voters/overseas-voters/">http://ecisveep.nic.in/voters/overseas-voters/</a>. Alternatively, it can also be collected from any nearest Indian mission. The duly filled in form with the supporting documents asked can be supported to the Electoral Registration Officer in the respective constituency either in person or via post. Once the details are verified, the ECI will approve the candidate as an overseas voter. This candidate needs to get an EPIC card upon returning to India by re-registering as a general voter.

Lok Sabha Elections 2019: Can NRIs vote?

New Delhi, Mar 20 () The Department for Promotion of Industry and Internal Trade (DPIIT) has notified a decision of the union cabinet to allow non-resident Indians (NRIs) to control up to 100 per cent stake in disinvestment-bound Air India. The FDI policy earlier permitted NRIs to take only 49 per cent stake in the airline. In its press note, the DPIIT said: "Foreign investments in Air India including that of foreign airlines shall not exceed 49 per cent either directly or indirectly except in case of those NRIs, who are Indian Nationals, where foreign investment is permitted up to 100 per cent under automatic route". On March 4, the cabinet had taken a decision in this regard. The decision came at a time when the government has sought preliminary bids for 100 per cent stake sale in the national carrier. It also said that the condition that substantial ownership and effective control (SOEC) of Air India shall continue to be vested in Indian nationals. An official statement has earlier stated that in light of the proposed strategic disinvestment of 100 per cent of Air India by the government, it has been decided that foreign investment in Air India be brought on a level-playing field with other scheduled airline operators. The national carrier will have no residual government ownership and will be completely privately owned. Under the SOEC framework, which is followed in the airline industry globally, a carrier that flies overseas from a particular country should be substantially owned by that country's government or its nationals. RR ANSANS

DPIIT notifies decision to permit NRIs to own up to 100 pc stake in Air India

<keyword id="58225" type="ORGANIZATION" weightage="100" keywordseo="NRIs">NRIs</keyword> with offshore bank accounts would not be able to escape the investigation by tax authorities. If found guilty, they will have to instruct the overseas banks to share their account information with the Indian tax office to prove themselves innocent. 
 
Only after the authorities are convinced that the money in the account does not belong to the person who has been pulled up for hiding offshore assets, would they be able to escape their eyes. 
 In a recent case, the Bombay High Court has dismissed the writ petition filed by an NRI, who was an alleged beneficiary of a trust which was linked to an <keyword id="832748" type="ORGANIZATION" weightage="100" keywordseo="HSBC-Geneva">HSBC Geneva</keyword> account, after she refused to sign the "consent waiver" form. Due to secrecy rules, Switzerland banks and tax havens don’t divulge account information until they get consent from account holders. 
 
The court, in its order dated April 5, said, "In the normal course of human conduct if a person has nothing to hide and serious allegations/questions are being raised about the funds, a person would make available the documents which would put to rest all questions which seem to arise in the mind of the authorities." 
 
Since the petition was not withdrawn, the order would most likely be used by the taxmen against those they suspect to have HSBC Geneva accounts. 
 
<a href="http://s3.amazonaws.com/armstrongeconomics-wp/2014/06/Swiss-COW.jpg">Image source</a>

Tax authorities can investigate NRIs with offshore bank accounts until they give consent for information sharing

Buying a home ‘back in India’ is every NRI’s dream. Thankfully, it can be fulfilled due to availability of easy home loan facilities, relaxed rules by the RBI and online transacting options. 
 
While the guidelines to apply for NRI home loans are same as those for resident Indians, certain terms differ for the former. NRIs are allowed to buy any property or plot for commercial or residential use however agricultural land, plantation property and farmhouse are not permissible unless specific consent from the RBI is attained. 
 
So if you’ve shortlisted a property and want to approach a bank, it will be a good idea to ensure that you meet the following criteria. 
This begins with the NRI status in the first place. Both Non-Resident Indians and Persons of Indian Origin can apply for home loans. While salaried people need to have spent a minimum of one year in employment abroad, businessmen or self-employed are eligible only after three years of employment. 
 
Furthermore, self-employed might find themselves battling stricter rules and challenges. For example, those with office spaces and white collared jobs get granted loans, but a taxi driver might not. PIO and OCI may not be allowed to buy plots and commercial properties but those classified as NRIs can. Certain jobs may also be treated differently. For instance, Indian Merchant Navy personnel can be classified as NRI if they possess a foreign account and the same rules will apply. 
 
Any person above the age of 21 can apply but a ruling factor for home loan sanctions are the income and educational qualification of the applicant. One is required to possess at least a graduation degree or diploma certificate. With respect to income, banks differ on minimum income limits but an average of USD 30,000 for those living in Western countries and 35,000Dhms for those in the Middle East usually suffices. But do keep in mind that banks don’t fund negative locations like Africa. 
 
The documentation requisites mostly include passport copy, valid visa and work permit copies, proof of foreign residence, employment contracts, salary certificate and updated NRE/NRO account statements. Certain banks may ask for more documents either based on your income or location. However, the good news is one needn’t make a visit to India to apply for home loans. Most reputed banks have their branches on foreign shores, or one can even apply online. However, a friend or family member living in India will have to mandatorily be assigned the Power of Attorney and as co-applicant to carry out further formalities with the bank. 
 
Most banks allow 80-85% of the value of property subject to gross monthly income. The rate of interest for NRI home loans tend to be the same or sometimes marginally higher than resident loans due to the higher risk involved. In case of flat purchases, the banks pay the loan amount directly in favour of the builder as per the due dates mentioned in the agreement. Unlike resident Indians, the tenure for NRI home loans is usually restricted to 15 years and can be extended at the discretion of the bank for select individuals. This is because most banks have a general idea that repayment capability is much higher for those living abroad. 
 
The down payment and repayment of the loan can only be done in Indian Rupees and through normal banking channels or NRE/NRO accounts by way of remittances from abroad. In case the house bought is for investment purpose, the RBI also permits rent received to be paid against the EMI. 
 
However, before going ahead with the loan, do make sure to check for any hidden costs or loopholes involved. Comparing rates of different banks and checking other costs like processing and administrative fee, pre and late payment charges etc. will help make a more informed choice. 
 
Assigning the Power of Attorney in advance can further quicken the process. With numerous housing portals dominating the online space today, the ease of shortlisting a house and applying for loans has become a child’s play. Some of these portals have also partnered with financial institutions to provide better service and a hassle free experience. Not only do they liaison between the bank and the customer, but also ease the documentation work with builders. 
 
So if you intend to apply for a home loan by either doing a quick visit to India or sitting comfortably on foreign shores, here is a quick checklist to keep in mind. 
 
· Cross check your eligibility for applying, compare bank rates and terms of the loan. 
· Study the market, shortlist a property and verify its details. 
· Have all the documents like the passport, valid visa and work permit, contract of employment, work experience certificate, salary certificate and statements of NRE/NRO accounts etc., ready in advance. This reduces approval and processing time. 
· Assign the POA to a trusted family member or friend. 
· Keep a track on repayment and smooth closure for a clean credit history. 
 
The Indian real estate market has much to offer today. For those sitting on foreign shores and looking to invest in India, there couldn’t be a better time. 
 
(The article is contributed by Housing.com) 
 
(Image: Thinkstock)

Here are dos and don’ts for NRIs who apply for home loans

The <a href="http://www.businessinsider.in/searchresult.cms?query=Reserve+Bank+of+India&amp;sortorder=effectivedate">Reserve Bank of India</a> (RBI) received several requests for exchanging <a href="http://www.businessinsider.in/searchresult.cms?query=demonetized+notes&amp;sortorder=effectivedate">demonetized notes</a>, even after the deadline of Dec 30, 2016 was over. Out of many, the RBI received a request from a man whose dead father left him Rs 50, 000 notes in <a href="http://www.businessinsider.in/searchresult.cms?query=old+currency&amp;sortorder=effectivedate">old currency</a>. 
 
The case came into light when <a href="http://www.businessinsider.in/searchresult.cms?query=Bhopal&amp;sortorder=effectivedate">Bhopal</a>-based Mastan Singh Maran found old notes left by his dead father while cleaning the room. Singh, whose father passed away on December 26, 2016, even produced certificates ranging from hospital bills to death certificate of his father at the RBI branch in <keyword id="6355556" type="COMPANY" weightage="100" keywordseo="bhopal">Bhopal</keyword>. Singh and his family claims that his father had lost memory before he died, forgetting to tell anyone about the cash he had with him. 
 However, the RBI turned down the request. The RBI officials denied accepting the old notes, saying only <keyword id="58225" type="ORGANIZATION" weightage="100" keywordseo="NRIs">NRIs</keyword> are eligible for exchanging old currency notes now till March 31, 2017.

Here’s what happened when a man requested RBI to exchange old notes left by his dead father

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

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

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