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The Reserve Bank of <keyword id="19895063" type="General" weightage="20" keywordseo="India" source="keywords">India</keyword> (<keyword id="19899808" type="General" weightage="20" keywordseo="RBI" source="keywords">RBI</keyword>) on Thursday allowed the opening of rupee accounts outside India as part of its strategic action plan to internationalise the domestic <keyword id="20256153" type="General" weightage="20" keywordseo="currency" source="keywords">currency</keyword>. With emphasis on continuous synchronisation of the <keyword id="19940710" type="General" weightage="20" keywordseo="FEMA" source="keywords">FEMA</keyword> operating framework with the evolving macroeconomic environment, rationalisation of various guidelines will be of primary focus, the central bank said in its annual report. The RBI said it has finalised a strategic action plan for 2024-25 and envisaged liberalisation of external commercial borrowing (ECB) framework and 'Go-live' for phase I of software platform for ECBs and trade credits reporting and approval (SPECTRA) project. The RBI will permit opening of rupee (INR) accounts outside India by persons resident outside India (PROIs) as part of the 2024-25 agenda for internationalisation of the domestic currency. "INR lending by Indian banks to PROIs and enabling foreign direct investment (FDI) and portfolio investment through special accounts [special nonresident rupee (SNRR) and special rupee vostro account (SRVA)," the report said. Rationalisation of the Liberalised Remittance Scheme (LRS) and review of the IFSC regulations under FEMA also are part of the agenda for the current financial year. The RBI report further said rationalisation of regulations towards promoting the internationalisation of the INR was undertaken to enable the settlement of bilateral trade in local currencies. Going forward, it said the liquidity operations would continue to be in sync with the stance of the monetary policy, while the foreign exchange operations would be guided by the objective of ensuring orderly movements in the exchange rate of the rupee. SEE ALSO:<a href="https://www.businessinsider.in/india/news/lok-sabha-exit-poll-2024-what-are-they-when-will-they-be-announced-and-all-you-need-to-know/articleshow/110565608.cms" target="_blank"></a> <a href="https://www.businessinsider.in/india/news/lok-sabha-exit-poll-2024-what-are-they-when-will-they-be-announced-and-all-you-need-to-know/articleshow/110565608.cms" target="_blank">Lok Sabha Exit Poll 2024 – what are they, when will they be announced and all you need to know</a><a href="https://www.businessinsider.in/tech/apps/news/truecaller-can-now-detect-if-the-caller-is-using-ai-how-to-use-it-to-prevent-ai-call-scams/articleshow/110556100.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/apps/news/truecaller-can-now-detect-if-the-caller-is-using-ai-how-to-use-it-to-prevent-ai-call-scams/articleshow/110556100.cms" target="_blank">Truecaller can now detect if the caller is using AI – How to use it to prevent AI call scams</a><a href="https://www.businessinsider.in/sports/webstories/indias-t20-world-cup-team-matches-and-everything-you-need-to-know/slidelist/110551798.cms" target="_blank"></a> <a href="https://www.businessinsider.in/sports/webstories/indias-t20-world-cup-team-matches-and-everything-you-need-to-know/slidelist/110551798.cms" target="_blank">India’s T20 World Cup team, matches and everything you need to know</a>

RBI to allow opening of rupee account outside India

Credit card payments for foreign travel will be brought under the purview of the Liberalised Remittance Scheme (<keyword id="447038" type="General" weightage="100" keywordseo="lrs" source="Orion">LRS</keyword>) of the Reserve Bank, to ensure that such expenses do not escape <keyword id="6357150" type="General" weightage="80" keywordseo="tcs" source="Orion">TCS</keyword> (Tax Collection at Source). While moving the <keyword id="25455" type="General" weightage="50" keywordseo="finance" source="Orion">Finance</keyword> Bill 2023 for consideration and passage in the Lok Sabha on Friday, Finance Minister Nirmala Sitharaman said the Reserve Bank has been asked to look into ways to bring credit card payments on foreign tours under the LRS. "It has been represented that payments for foreign tours through a credit card are not being captured under the Liberalised Remittance Scheme (LRS) and such payments escape tax collection at source (TCS)," she said. The <keyword id="30067" type="General" weightage="50" keywordseo="rbi" source="Orion">RBI</keyword> is being requested to look into this with a view to bringing credit card payments for foreign tours within the ambit of LRS and tax collection at source thereon, she added. The Union Budget 2023 proposed a TCS for foreign outward remittance under LRS other than for Education and medical purposes of 20 per cent applicable from July 1, 2023. Before this proposal, the TCS of 5 per cent was applicable on foreign outward remittances above Rs 7 lakh. <keyword id="735754" type="General" weightage="50" keywordseo="tax-collected-at-source" source="Orion">Tax Collected at Source</keyword> (TCS) is an income tax, collected by the seller of specified goods, from the buyer. TCS is a concept where a person selling specific items is liable to collect tax from a buyer at a prescribed rate and deposit the same with the government. The LRS, introduced in 2004, initially permitted an outflow of USD 25,000. The LRS limit has been revised in stages consistent with prevailing macro and micro economic conditions. LRS permits Indians to freely remit up to USD 250,000 (about Rs 2.05 crore) per financial year for current or capital account transactions or a combination of both. Any remittance exceeding this limit requires prior permission from the RBI. The rules clearly mention that one can remit foreign exchange (forex) only for any permissible current account transactions or capital account transactions or a combination of both. If one wishes to invest abroad in shares, property etc, the LRS rules will define them as capital account transactions. Only certain capital account transactions are allowed under LRS rules such as opening a bank account abroad i.e. a Foreign Currency Account, purchasing real estate property overseas, for making investments overseas which includes investing in shares, mutual funds, and debt instruments amongst others. Authorised dealers, such as banks, enable such transactions between residents and their overseas dependents, using only PAN cards for verification. Besides remittances, LRS can also offer foreign exchange services to Indian citizens for medical expenses or travelling. However, corporates, partnership firms, HUFs, and charitable trusts are not eligible to use the LRS. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/debt-schemes-of-mfs-lose-edge-over-bank-deposits-as-budget-proposes-to-scrap-ltcg-indexation-benefits/articleshow/98965932.cms">Debt schemes of MFs lose edge over bank deposits as Budget proposes to scrap LTCG &amp; indexation benefits</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/news/canva-just-got-a-major-ai-upgrade-with-new-features-like-magic-eraser-text-to-image-and-moreheres-what-they-do/articleshow/98965377.cms">Canva just got a major AI upgrade with new features like Magic Eraser, Text to Image, and more–here’s what they do</a>

Credit card payments on foreign tours to be brought under LRS to ensure compliance with TCS

<ul><li><keyword id="6368202" type="General" weightage="20" keywordseo="Credit-card" source="Orion">Credit card</keyword> spends outside India will also get roped within the ambit of the overall cap of $250,000. </li><li>Any credit card purchase overseas will now attract <keyword id="6357150" type="General" weightage="100" keywordseo="tcs" source="Orion">TCS</keyword> if it is not meant for purposes of education or medical treatment. </li><li>TCS will also apply when you pay for subscription of international magazines, through your credit card.</li></ul>The Central government has amended the rules under the Foreign Exchange Management Act to bring credit card spending outside of India under the ambit of the Liberalised Remittance Scheme (LRS). Consequently, starting from July 1, such credit card transactions will be subject to a higher rate of tax collected at source (TCS) at 20%. The Central government, in collaboration with the Reserve Bank of India, effected the amendment through a notification this week. <cmsannotation type="cmsannotation" annotationid="What it means" comment="subhead" text="What it means">What it means</cmsannotation> In Budget 2023-24, the government raised the TCS on expenses under LRS to 20% without any threshold, for all expenses excluding education and medical treatment. Currently LRS has a limit of $250,000 (around ₹2 crore), and any remittance above this needs approval from the Reserve Bank of India (RBI). “By virtue of this notification, payments made through international credit cards outside India will fall within the purview of the LRS scheme. This essentially means that credit card spends outside India will also get roped within the ambit of the overall cap of $250,000. This is irrespective of the fact that whether such spends are for personal or business purposes and there is a consequential TCS impact,” says Riaz Thingna, partner, Grant Thornton Bharat LLP. This means that individuals with high spending on international transactions will now need to carefully plan their foreign remittances to ensure compliance with the regulations and avoid any violation of norms. <cmsannotation type="cmsannotation" annotationid="Travel to become more expensive, even if you plan it yourself" comment="subhead" text="Travel to become more expensive, even if you plan it yourself">Travel to become more expensive, even if you plan it yourself</cmsannotation> While the above may not apply to most people, the new rule means that any credit card purchase overseas will now attract 20% TCS if it is not meant for purposes of education or medical treatment. Previously, the use of international credit cards for expenses incurred during trips abroad was not considered part of the liberalised remittance scheme (LRS). “In order to apply TCS on foreign remittances and foreign spends under LRS, an amendment was proposed in Section 206C(1G) of the Income Tax Act wherein TCS @20% was proposed on remittances for foreign spends. The payment for these foreign spends could also be made via international credit cards, which was not under RBI scanner apropos Rule 7 of FEMA Rules 2000,” says Vivek Jalan, partner, Tax Connect Advisory. Rule 7 of FEMA (Foreign Exchange Management Act) Rules 2000 pertains to the prohibition on transactions in foreign exchange, foreign security, and immovable property by a person resident outside India “The finance minister while answering in the Parliament asked the RBI to find out ways by which this could also be tracked by deleting this Rule 7 of FEMA (Current Account Transaction) Rules 2000 all foreign spends even by international credit cards will also be liable to TCS @20%,” says Jalan. Post the budget announcement, only package tours were subject to 20% TCS. Now that is no longer the case. TCS will apply even if you plan a foreign trip on your own. When one travels abroad one needs to make a lot of payments. For example, when travelling to Paris, an entry to a museum could cost you €100. You would have to pay TCS on that, even if you book it from India with a credit card before you travel. Also, if you buy a Starbucks latte or take an Uber when travelling abroad, you have to pay 20% TCS. TCS will also apply when you pay for subscription of international magazines, through your credit card. “Another impact is that when travelling abroad, you can use your credit card only till 80% of your credit limit. You can get a tax credit on this, but it will affect your cash flow,” says B. Srinivasan, director and founder, Shree Sidvin Investment Advisors. For example, since the banks will be using 20% as TCS, if one has a ₹5 lakh credit limit, one can only use ₹4 lakh. Also Jalan clarifies that spends via international debit cards and travel cards would continue to be liable under TCS, since they were never outside the ambit of TCS under Rule 7 of FEMA Rules 2000.

Credit card now under LRS ambit – 20% TCS to be charged on spends using international credit cards

<ul><li>The Enforcement Directorate (ED) has seized three immovable properties worth ₹41.64 crore during a probe against <keyword id="17358746" type="General" weightage="80" keywordseo="zavareh-soli-poonawalla" source="Orion">Zavareh Soli Poonawalla</keyword> and his family members.</li><li>The properties are located at Ceejay house, Worli in Mumbai.</li></ul>New Delhi, The Enforcement Directorate (ED) has seized three immovable properties worth ₹41.64 crore under the provisions of Foreign Exchange Management Act (<keyword id="6379062" type="General" weightage="100" keywordseo="fema" source="Orion">FEMA</keyword>) during a probe against Zavareh Soli Poonawalla and his family members. The properties are located at Ceejay house, Worli in Mumbai. The ED is investigating a case of misuse of Liberalized Remittance Scheme (<keyword id="447038" type="General" weightage="80" keywordseo="lrs" source="Orion">LRS</keyword>) under the provisions of the FEMA against Zavareh Soli Poonawalla and his family. His name was found in the Panama Papers revelations regarding off-shore entities The ED investigation has established that Poonawalla and his family members had remitted foreign exchange abroad by mis-utilising the provisions of LRS scheme. "They used the maximum permissible limit and from the year 2011-12, they remitted money abroad via mis-declarations under the pretext of 'family maintenance and self-maintenance', however none of their family members was residing abroad or holding NRI status," the ED said. The entire funds remitted by Poonawalla and his family members under LRS were invested into <keyword id="17361586" type="General" weightage="50" keywordseo="stallast-limited" source="Orion">Stallast Limited</keyword> based in BVI. The funds remitted by Poonawalla and his family members were utilised by Stallast Limited to purchase four properties in the UK. These properties include four apartments at Paddington, London. Multiple FEMA contraventions were seen in these transactions, the agency said. According to ED, apart from mis-declarations in the remittances, Poonawalla and his family members wrongly claimed these investments as foreign portfolio investments; in reality, the foreign entity was completely controlled by them. The foreign assets, which they continue to possess, were not declared to RBI. "The properties abroad were acquired through the funds remitted under LRS to avoid reporting requirements to RBI and thus, <keyword id="17359962" type="General" weightage="80" keywordseo="zavareh-poonawalla" source="Orion">Zavareh Poonawalla</keyword> has mis-utilised the LRS. Therefore, the equivalent value of properties held by them in India have been seized under the provisions of Section 37A of FEMA," the ED said. Further investigation in the matter is on. SEE ALSO: <a href="https://www.businessinsider.in/tech/news/what-are-vishing-scams-that-start-with-a-namaste-and-end-with-monetary-losses/articleshow/99762900.cms">What are ‘vishing scams’ that start with a Namaste and end with monetary losses</a> <a href="https://www.businessinsider.in/tech/news/sony-wh-ch720n-headphones-review-featherweight-comfort-and-impressive-sound/articleshow/99911412.cms">Sony WH-CH720N headphones review: Featherweight comfort and impressive sound</a>

FEMA violation: ED seizes properties worth ₹41.64 crore of Zavareh Poonawalla

<ul><li>For education and medical treatment there is no change to the earlier tax of 5% on remittances in excess of ₹7 lakh</li></ul><ul><li>Overseas tour packages will get more expensive as <keyword id="6357150" type="General" weightage="100" keywordseo="tcs" source="Orion">TCS</keyword> has been increased from 5% to 20%</li></ul><ul><li>TCS paid can be settled against tax dues and refund claimed if applicable</li></ul>The Union Budget 2023 has proposed a tax collection at source (TCS) of 20% for foreign outward remittance under liberalized remittance scheme (LRS) (other than for education and medical purposes). This will be applicable from July 1, 2023. Before this, TCS of 5% was applicable to foreign outward remittance in excess of ₹7 lakh. Now, apart from education and medical treatment, there will be no threshold limit for other instances of remittances. “ There is a proposal to increase the TCS to 20% from 5% for exchange remittances under LRS as prescribed by RBI. The TCS can be claimed as a credit in the tax return. This impacts the remittances being made under LRS, such as investing in foreign stocks, property overseas travel, maintenance of relatives abroad,” says <keyword id="8998975" type="General" weightage="50" keywordseo="rohinton-sidhwa" source="Orion">Rohinton Sidhwa</keyword>, partner, Deloitte India. Let us take a closer look at how this will affect overseas remittance under LRS. Overseas education and medical treatment: For both overseas education and medical treatment, the 5% TCS is charged on the total amount of remittance in excess of ₹7 lakh. The budget proposes no change in that. Plus, when someone takes a loan to study abroad the TCS is charged only at 0.5% of the total amount in excess of ₹7 lakh. It is to be noted that education includes tuition fees and hostel expenses. “In case a student goes abroad and lives in a school/college hostel and remittance for foreign exchange is made for the same, then it can be considered as remittance for educational purposes. However, in case the student spends for food/lodging and where there is no link of such spending with the school/college, then it may be sought to be classified as other than education purposes and the field officers may seek to demand a levy of TCS at 20%. In case this happens, then education abroad would become quite cash intensive,” says <keyword id="1256264" type="General" weightage="50" keywordseo="vivek-jalan" source="Orion">Vivek Jalan</keyword>, Partner, Tax Connect Advisory. Overseas tour packages: Overseas tour packages will get costlier and attract a TCS of 20% without any threshold limit. If an Europe tour package costs ₹10 lakh, one now has to pay ₹12 lakh for the same package going ahead. “However, this is applicable only to your packages and will not apply if someone is making bookings of hotels etc on their own,” says Rachit Sharma, Company Secretary, Taxmann Group. “While various boosters have been provided for integrated domestic travel in this budget, yet this increase in the rate of TCS would act as a dampener for foreign travel. Hence the policy of The Government seems clear,” says Jalan. Overseas investments: When investing abroad, one has to pay 20% TCS without any threshold limit going forward. Over the last few years more and more Indians have been investing overseas, especially in the US. Since every dollar one invests will now have a 20% tax imposed on it, this will affect their returns (earlier one did not have to pay any TCS on up to ₹7 lakh invested). Buying property abroad: “Similarly, if the person wants to buy an immovable property outside India, in addition to the money he has to pay for the purchase of the property, he will be required to pay 20% of the the purchase price by the way of TCS to the bank from where remittance is made,” says <keyword id="47558" type="General" weightage="50" keywordseo="ved-jain" source="Orion">Ved Jain</keyword>, founder, Ved Jain Associates. Hence, if you are buying a property in Dubai worth Rs 3 crore, an additional ₹60 lakh needs to be paid. However, one can get a tax credit on the same as explained later. <div type="image" title="budget-table" msid="97555446" hostid="261" sizebytes="76684" caption="&amp;lt;p&amp;gt;&amp;lt;em&amp;gt;Source: Taxmann Group, Only for remittance under LRS&amp;lt;/em&amp;gt;&amp;lt;/p&amp;gt;"></div> TCS can be settled against tax dues: TCS on remittances essentially means that a person making a remittance will have to pay an additional 20% at the time of making the remittance, i.e. there will be an additional 20% cash flow paid towards TCS. However, it can be settled against tax dues. “This amount then will appear in their Form 26AS since TCS is linked to their PAN and can be settled against their tax dues. This is tax already collected from them. In the event the taxpayer has a refund situation, the excess tax collected via TCS shall be refunded to the taxpayer,” says Archit Gupta, founder and CEO, Clear. “However for everyone this implies more funds locked in which are only adjustable while paying taxes, or refunded after the FY once income tax return is processed,” says <keyword id="3707077" type="General" weightage="50" keywordseo="sidhwa" source="Orion">Sidhwa</keyword>. One may infer that this move is aimed at discouraging people from sending money abroad. When sending money abroad, one thus needs to plan accordingly.

Budget 2023 proposes 20% TCS on foreign expenses under LRS

Amid the entire hullabaloo about the <a href="http://www.businessinsider.in/searchresult.cms?query=Panama+papers&amp;sortorder=effectivedate">Panama Papers Leaks</a>, it has turned out that many of the Indians, who have been named in the massive leaks for off-shoring their money to tax havens, used <a href="http://www.businessinsider.in/searchresult.cms?query=RBI&amp;sortorder=effectivedate">RBI’s</a> Liberalised Remittance Scheme (LRS). 
 Under LRS, which was introduced in 2004 with a cap of $25,000 and was raised to $2,50,000, remittances up to that amount are allowed by a resident individual in one financial year. It was only last year that a law was introduced on undisclosed accounts that will face action under the <keyword id="6356023" type="UNKNOWN" weightage="20" keywordseo="Black-Money">black money</keyword> law. 
 
The LRS also allows buying immovable property, investment in equity and debt, and donations and gifts. As per an ET report, about $1.3 billion was transferred out of the country in FY15 through LRS. 
 More than 500 Indians have been named in the <keyword id="3310338" type="UNKNOWN" weightage="20" keywordseo="panama-papers-leaks">Panama Papers Leaks</keyword>, including celebrities and politicos. As per preliminary enquiry, 90 per cent of Indians chose LRS route. 
 
READ ALSO: <a href="http://www.businessinsider.in/Panama-Paper-Leaks-My-name-has-been-misused-says-Amitabh-Bachchan/articleshow/51701994.cms">Panama Paper Leaks: "My name has been misused," says Amitabh Bachchan</a> 
 "About 90% of these accounts have used <keyword id="30067" type="ORGANIZATION" weightage="20" keywordseo="RBI">RBI</keyword>'s liberalised remittance scheme (LRS) but the rest should be prepared to face the music," a government official told ET. 
 
However, the government has said that the wrongdoers will be brought to books as tax authorities will seek information from other jurisdictions listed in the Panama Papers with which India exchanges information as part of bilateral or global treaties. 
 
READ ALSO: <a href="http://www.businessinsider.in/Panama-Papers-Leak-Black-money-SIT-to-investigate-list/articleshow/51685352.cms">Panama Papers Leak: Black money SIT to investigate list</a> 
 
Black money became a major political plank also when the Bharatiya Janata Party (BJP) claimed to bring the money back in India. 
In his <a href="http://www.businessinsider.in/searchresult.cms?query=budget+2016&amp;sortorder=effectivedate">Budget 2016</a>, <a href="http://www.businessinsider.in/searchresult.cms?query=arun+jaitley&amp;sortorder=effectivedate">Finance Minister Arun Jaitley</a> announced a compliance window, giving a chance to come clean on black money. 
 
READ ALSO: <a href="http://www.businessinsider.in/These-comics-explain-the-Panama-Paper-Leaks-so-easily-that-even-a-5-year-old-would-get-it/articleshow/51699430.cms">These comics explain the Panama Paper Leaks so easily that even a 5-year-old would get it</a>

Majority of Indians named in Panama Papers Leaks may
have used a legal route to have offshore assets

After we have seen many business tycoons investing in Indian startups, <keyword id="16032" type="COMPANY" weightage="20" keywordseo="Guess">guess</keyword> who is making a debut in the investment arena. It is Bachchans, one of the most respected families in the film fraternity, have recently pumped in money in an overseas company in <keyword id="6356662" type="COUNTRY" weightage="20" keywordseo="Singapore">Singapore</keyword>, Ziddu. 
 The news was confirmed by The Economic Times, which reports that Bachchans have picked up a minority stake in <keyword id="2859845" type="UNKNOWN" weightage="20" keywordseo="Meridian-Tech-Pte">Meridian Tech Pte</keyword> of Singapore, which owns ziddu.com, a free cloud storage and e-distribution startup. The firm, which also offers a micro payment platform, was founded five years ago by Venkata <keyword id="2859847" type="UNKNOWN" weightage="20" keywordseo="Srinivas-Meenavalli">Srinivas Meenavalli</keyword>. 
 "Mr <keyword id="6357912" type="PERSON" weightage="20" keywordseo="amitabh-bachchan">Amitabh Bachchan</keyword> and his family have invested in Ziddu.com at a valuation of around $71 million. I'm very happy and excited that they have reposed confidence and trust in Ziddu.com," Meenavalli said in response to text messages from ET. 
 Ziddu.com, said Meenavalli (quoting <keyword id="6355629" type="CITY" weightage="20" keywordseo="Google">Google</keyword> Analytics), was among the top five file-sharing sites across the world, generating 1.2 billion page views with visitors from more than 225 countries. The company logged revenues of $20 million in calendar year 2014. 
 The deal was executed on Monday. A person in the <keyword id="6354241" type="COMPANY" weightage="20" keywordseo="Financial-Services">financial services</keyword> industry informed the financial daily that the Bachchans had to use funds lying in their offshore accounts to close the deal because banks in India were unwilling to transfer the maximum permissible amount in the absence of a government notification - a problem that many well-heeled individuals have faced in the past few months while acquiring shares and properties abroad through RBI's liberalised remittance scheme (LRS). 
 
 The LRS facility allows a resident Indian to <keyword id="47916" type="UNKNOWN" weightage="20" keywordseo="invest">invest</keyword> up to a certain amount in foreign assets. In February this year, RBI in its monetary policy statement announced that the LRS limit was being raised from $125,000 to $250,000 per person per year. However, the <keyword id="47209" type="ORGANIZATION" weightage="20" keywordseo="Finance-Ministry">finance ministry</keyword> is yet to approve RBI's decision. A month ago, an <keyword id="217506" type="POSITION" weightage="20" keywordseo="RBI-spokesperson">RBI spokesperson</keyword> told ET that "the notification is pending with the government and banks can allow higher remittances only after the circular/notification is issued". "In the meantime," said the RBI official, "any urgent cases get referred to RBI which are considered on merits." It is understood that shares of Meridian were bought for $252,000 using funds in two accounts - a single account of Bachchan Senior and a joint account he shares with son <keyword id="498" type="PERSON" weightage="20" keywordseo="abhishek">Abhishek</keyword>.

Bachchans debut as investors but not in India

<ul><li><keyword id="6358021" type="General" weightage="50" keywordseo="budget" source="Orion">Budget</keyword> announcement of 20% tax on foreign investments to make investments in the US markets less appealing. </li><li>Direct investments in the US markets remain viable only for a tiny minority of high and ultra high-networth individuals (HNI/UHNIs). </li><li>Retail investors should consider exposure to the US markets through Indian mutual funds that invest in US <keyword id="6354298" type="General" weightage="20" keywordseo="stocks" source="Orion">stocks</keyword> and funds. </li></ul>While one cannot buy a Tesla car in <keyword id="3658" type="General" weightage="100" keywordseo="india" source="Orion">India</keyword> yet, one can buy shares of the electric vehicle (EV) giant. Similarly, one can also invest in shares of Apple, Meta (earlier Facebook), Alphabet (parent company of Google) and other US tech giants. To invest directly in US stocks from India, one needs to send money abroad under the liberalised remittance scheme (LRS). However, a budget proposal to impose a 20% tax collected at source (<keyword id="6357150" type="General" weightage="80" keywordseo="tcs" source="Orion">TCS</keyword>) on foreign remittances under LRS without any threshold limit has made investing directly in foreign stocks, especially in US stocks, less attractive for investors. Earlier, a 5% TCS was applicable on outward remittances above ₹7 lakh. <cmsannotation type="cmsannotation" annotationid="20% tax on foreign investments to hit retail investors hard" comment="subhead2" text="20% tax on foreign investments to hit retail investors hard">20% tax on foreign investments to hit retail investors hard</cmsannotation> Manish Chowdhury, head of research at Stoxbox, a subscription-based value broker, says “The budget proposal would prove to be a deterrent for small-time investors, as it would mean a large upfront cash outflow. Moreover, we believe that the change in TCS will adversely affect investing platforms, especially aimed at retail investors, who are more glued to direct investing in international stocks.” Currently IndMoney and Vested Finance are two such platforms that help Indian investors invest in US stocks and exchange-traded funds (ETFs). Pratik Oswal, head, ETFs and Index Funds, Motilal Oswal Financial AMC says that since this means that 20% of the sum invested abroad will be used for tax purposes and locked away at zero-percent interest till you file your taxes, it will mean an additional cost to the investor. It is to be noted that the tax paid can be claimed as credit. “While the TCS of 20% is a sentiment damper for Indians who would like to create a corpus outside of India and invest to meet future dollar commitments, it should not be confused as a sunk cost or additional cost. The TCS will be reflected as tax credit in your Form 26AS. So, the amount of TCS can be claimed as credit against tax payable while filing income tax returns,” says Sumita Pillai, chief executive officer of Torus Private Wealth. In case the TCS is higher than your tax payable, you will get a refund. <cmsannotation type="cmsannotation" annotationid="Direct investments in the US markets to get costlier" comment="subhead2" text="Direct investments in the US markets to get costlier"> Direct investments in the US markets to get costlier</cmsannotation> In another development, in January 2023, RBI asked SBM Bank to stop LRS transactions till further notice. Both IndMoney and Vested Finance have tie-ups with SBM Bank to make the process of investing faster and cheaper. “Vested Direct, our unique, low-cost digital fund transfer solution is supported by SBM India. With the help of Vested Direct, we were able to lower the overall cost of depositing funds to investors,” says Viram Shah, founder and CEO, Vested Finance. However, after the RBI directive, that is no longer possible. Shah clarifies that the introduction of this ruling means they will not be processing any new deposits using Vested Direct in the interim. This means that investing abroad through the LRS route is now more cumbersome and costly, the way it was a few years ago. This is definitely a dampener when it comes to Indians investing abroad. <cmsannotation type="cmsannotation" annotationid="Alternative option for investing in the US markets" comment="subhead2" text="Alternative option for investing in the US markets">Alternative option for investing in the US markets</cmsannotation> The above platforms provide investors an option to directly invest in US stocks. However, Indian investors can also get exposure to the US markets indirectly through international mutual funds that invest in the US stock markets. Says Chowdhury, “With the policy change, investing in equities globally through a direct route has definitely become more expensive. However, investors can continue to take exposure in global equities through mutual funds and ETFs because they are still exempt from LRS. We continue to advise small investors to invest in global equities through the indirect route as it saves them from the hassles of setting up the infrastructure for direct investing and also does not involve upfront costs.” Agrees Oswal, “Investors looking at global options should look at mutual funds because they are a lot cheaper right now.” However, a lot of these mutual funds in India cannot accept fresh <keyword id="6355120" type="General" weightage="20" keywordseo="Investment" source="Orion">investment</keyword>s because they have either already exhausted or are about to exhaust the limit of $7 billion to invest in overseas securities and funds. The entire industry is hoping for higher limits to be put in place. “When these mutual funds stop accepting fresh investments, direct investments outside of India via LRS will be the only route available to invest outside of India. That route will make sense for only a very tiny minority of HNIs ( high-networth individuals) and UHNIs (ultra high-networth individuals),” says Avinash Luthria, a financial planner &amp; SEBI registered investment advisor, referring to high and ultra-high-networth individuals. Investors who want to invest in the US market through mutual funds should reach out to the asset management company (AMC) and find out which funds are still accepting fresh investments. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/india-a-long-term-investment-destination-even-among-g-20-countries/articleshow/97875443.cms">India a long-term investment destination even among G-20 countries</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/passenger-vehicles-recorded-highest-ever-sales-this-january-says-siam/articleshow/97874958.cms">Passenger vehicles recorded highest-ever sales this January says SIAM</a>

20% tax on foreign remittances make foreign investments unviable for retail investors

The <keyword id="6355187" type="General" weightage="50" keywordseo="lok-sabha" source="Orion">Lok Sabha</keyword> on Friday passed the Finance Bill 2023 without any discussion through voice vote, amid protests by the Congress-led opposition. Finance Minister <keyword id="129243" type="General" weightage="50" keywordseo="nirmala-sitharaman" source="Orion">Nirmala Sitharaman</keyword> announced that a panel under the finance secretary would be set up to look into the issue of pensions. As many as 75 amendments are there in the Finance Bill, all of which were approved through voice vote, even as the Congress members protested in the well of the <keyword id="7173" type="General" weightage="80" keywordseo="house" source="Orion">House</keyword>, shouting slogans and seeking a JPC probe in the Adani matter. The opposition MPs raised slogans and showed placards saying "Allow <keyword id="5268" type="General" weightage="50" keywordseo="rahul-gandhi" source="Orion">Rahul Gandhi</keyword> to speak in the House" and "We fought the British, we will fight Modi and RSS". Meanwhile, <keyword id="679937" type="General" weightage="80" keywordseo="sitharaman" source="Orion">Sitharaman</keyword> announced while speaking on the bill, that a committee under the finance secretary would be set up to look into the issue of pensions and for evolving an approach which addresses the needs of employees, while maintaining fiscal prudence to protect common citizens. She also informed the House that the approach will be designed for adoption by both the central government and state governments. Sitharaman further said, "It has been represented that payments for foreign tours through credit cards are not being captured under the Liberalised Remittance Scheme (LRS) and they escape tax collection at source. The RBI is being requested to look into this with a view to bring credit card payments for foreign tours within the ambit of LRS and tax collection at source thereon." Soon after the finance bill was passed, the Lower House was adjourned till March 27. Opposition members could be seen tearing their placards and throwing them at the Speaker's chair after the House was adjourned. The Finance Bill 2023, gives effect to the financial proposals of the central government for 2023-24. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/digitalisation-credit-growth-government-policies-to-drive-msme-growth-say-experts/articleshow/98962354.cms">Digitalisation, credit growth, government policies to drive MSME growth, say experts</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/telecom/news/ipl-2023-jio-introduced-new-cricket-plans-providing-3gb-data-per-day/articleshow/98962965.cms">IPL 2023: Jio introduced new cricket plans providing 3GB data per day</a>

Finance Bill passed in Lok Sabha amid opposition protest

<ul><li>A threshold relaxation of ₹7 lakh per financial year from <keyword id="6357150" type="General" weightage="20" keywordseo="tcs" source="Orion">TCS</keyword> has been given only for overseas spending using international debit or credit cards. </li><li>TCS shall be applicable at 20% on forex cards and cash exchanges without any threshold limit unless a specific clarification is issued by the relevant authorities. </li><li>Individuals <keyword id="648371" type="General" weightage="20" keywordseo="travelling-abroad" source="Orion">travelling abroad</keyword> separately or as a family may separately spend amounts up to ₹7 lakh per financial year on credit and debit cards. Group tours are set to cost more.</li></ul>Tax collected at source (TCS), and not the IT giant, was trending earlier in May after the Finance Ministry issued a notification stating that international credit cards would also be covered under the liberalised remittance scheme (LRS) – meaning a TCS of 20% would <a href="https://www.businessinsider.in/personal-finance/news/credit-card-now-under-lrs-ambit-20-tcs-to-be-charged-on-spends-using-international-credit-cards/articleshow/100323990.cms">apply to credit cards as well</a>. After facing a backlash, on May 19, another clarification was issued stating that payments made using international credit and debit cards up to ₹7 lakh shall be excluded from LRS. Hence no TCS shall be applicable on payments made by international credit and debit cards up to ₹7 lakh in a financial year. Any payment beyond ₹7 lakh shall attract TCS at the rate of 20%. However, confusion still prevails, and there is uncertainty on how this will impact foreign travel. People are wondering if there are ways to minimise the impact. We spoke to experts to find out. TCS to apply on forex card, cash exchanges without threshold limit “No specific clarification has been provided on the threshold limits for applicability of TCS on forex cards and cash exchanges, it is assumed that new TCS rules shall apply on forex card and cash exchanges,” says Kunal Savani, partner at law firm Cyril Amarchand Mangaldas. Hence, TCS shall be applicable at 20% on forex cards and cash exchanges without any threshold limit unless a specific clarification is issued by the relevant authorities. Says Suresh Surana, founder of RSM India, an audit, tax and consulting firm, “Assuming that a forex card would generate foreign exchange liability, the same would be covered under the scope of LRS, and TCS under section 206C(1G) would be applicable on the same without the threshold limit of ₹7 lakh as applicable in case of international credit, and debit cards.” TCS @20% applicable on entire amount when booking foreign tours “In case of overseas tours the Finance Act has amended section 206C(1G) of the Income-tax Act, 1961 thereby making TCS applicable on such overseas tours at the rate of 20%. No threshold limit has been provided, and hence a 20% TCS shall be applicable on the whole amount,” says Savani. The tour provider shall collect TCS at 20% in addition to the tour cost. This was introduced in Budget 2023, and has not been amended. It should be noted that the threshold relaxation of ₹7 lakh per financial year (FY) from TCS has been given only for overseas spending using international debit or credit cards. “This relaxation shall not be available for any remittances made from India for tour booking; and TCS on tour operators shall continue to be levied from ₹1,” says Vivek Jalan, partner, Tax Connect Advisory, a professional services firm. For example, if two people are going on a tour, and if the total cost is ₹5 lakh, then this will come under LRS, and the ₹7 lakh exemption will not be applicable. However, if they spend ₹5 lakh overseas on shopping, with international credit or debit cards, then the exemption will be applicable. Exemption applicable on a cumulative basis on all credit, debit cards “The exemption of ₹7 lakh applies to payments made through credit/debit cards only, and not to forex cards. From a reading of the press release, it appears that it is a combined limit applicable to payments made through credit, and debit cards taken together,” says Riaz Thingna, partner, tax, Grant Thornton Bharat, an assurance, tax and advisory firm. So, let us say that when travelling abroad with family in a certain financial year, someone spends ₹5 lakh on a credit card, and ₹5 lakh on a debit card. The first spend of ₹5 lakh from the credit card will not attract TCS as it is below the threshold of ₹7 lakh. The next spend of ₹5 lakh from the debit card will attract TCS in the following manner – there will be no TCS on ₹2 lakh, but a TCS @ 20% will apply on the balance ₹3 lakh. “However, if one uses a forex card, TCS @ 20% will be applicable on the amount of the foreign exchange credited to the forex cards without any exemption limit,” says Riaz. Minimise the impact of TCS on a foreign vacation When booking a tour package, there is no way one can minimise the impact of TCS when travelling abroad. “However, one may book in components, such as flights, hotels, etc., instead of booking a whole tour package,” says Nishant Pitti, chief executive officer and co-founder of EaseMyTrip. If the booking is done through a credit or debit card, one can get the benefit of the exemption limit. Also, LRS is available to all resident individuals including minors. Further, effective 1 July 2023, these new regulations would be applicable on all aggregate card spends above ₹7 lakh in a financial year, calculated separately for each resident individual. “Therefore, individuals travelling as a family/individuals travelling together, may separately spend amounts up to ₹7 lakh per financial year on credit cards, debit cards, while travelling abroad. In that case, TCS would not be applicable since it is below the threshold limit for each individual,” says Rajesh Srinivasan, partner at Deloitte India. If the total spend is exceeding ₹7 lakh, one may use credit or debit cards of different family members for booking to not pay any TCS. How to claim tax credit on TCS From July 1, 2023, Reserve Bank of India (RBI)- authorised banks would need to collect TCS. They would need to file quarterly returns, and provide necessary details including PAN of the Indian resident individual, and the amount remitted under LRS. TCS amount collected by the authorised bank would not be a sunk cost, and can be set-off against the tax payable on the individual’s total income (or) claimed as a tax refund in India. “Once quarterly TCS returns are filed by the authorised bank, the TCS amounts would reflect in Form 26AS of the Indian resident individual. Form 26AS refers to taxpayer’s records as available to the income-tax office, and contains details of taxable amounts remitted, and corresponding TDS and TCS,” says Srinivasan. TDS refers to tax deducted at source. He says that, therefore, no separate records need to be maintained by the Indian resident individual to claim tax credit later. Based on the Form 26AS (available in the individual’s login on the income-tax portal), the Indian resident individual can claim TCS as a tax credit or tax refund, while filing his/her income-tax return for the financial year. Also, the Indian government recently announced that it intends to automate the process of granting immediate TCS credit in case of salaried taxpayers. “The government proposes to link, and grant 20% TCS as credit against the monthly TDS due on the salary income of taxpayers. Procedures, and further announcements in this regard are expected in the coming weeks,” says Srinivasan. However, there is something that one needs to keep in mind. “The foreign exchange spend should be in proportion to the earnings. A person who spends say ₹10 lakh on a personal foreign tour in a fiscal year cannot declare an income of say just ₹12 lakh, or for that matter ₹15 lakh, all other things being constant,” says Jalan. TCS will make foreign tour packages more expensive upfront. However, the good news is that you can avoid TCS on your expenditures abroad, and get a tax credit easily in case you pay any TCS. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/entertainment/news/ott-releases-to-watch-for-june-2023/articleshow/100643939.cms">OTT releases to watch for June, 2023</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/sports/news/icc-top-brass-seeks-pcb-assurances-that-it-will-send-team-to-india-for-odi-world-cup/articleshow/100643947.cms">ICC top brass seeks PCB assurances that it will send team to India for ODI World Cup</a>

New TCS regulations may pinch your wallet while travelling abroad. Here’s how you can minimise the impact

<ul><li>In 2023, <keyword id="6362656" type="General" weightage="20" keywordseo="apartment" source="Orion">apartment</keyword> prices in <keyword id="6354539" type="General" weightage="20" keywordseo="dubai" source="Orion">Dubai</keyword> rose by approximately 18% and villa prices by about 22% </li><li>Dubai also has no capital gain tax, which makes investing in <keyword id="6354553" type="General" weightage="20" keywordseo="real-estate" source="Orion">real estate</keyword> a compelling proposition. </li><li>Rental yields, robust capital appreciation, and the stability of the Emirati Dirham (AED) are other reasons cited for <keyword id="6355120" type="General" weightage="20" keywordseo="investment" source="Orion">investment</keyword>. </li></ul>After the COVID pandemic got over, the real estate market has been going from strength to strength with affluent Indians also looking outside the country to make investments. Sample this – as per a report by ANAROCK, in 2022, Indians accounted for about 40% of all home-buying deals, with a total investment of ₹35,000 crore, nearly doubling the investment from 2021. Now, according to the Betterhomes <keyword id="6393792" type="General" weightage="20" keywordseo="residential" source="Orion">Residential</keyword> Market Report 2023, Indians have emerged as the leading investors in Dubai's real estate market, surpassing Britons in the third quarter of 2023. In the first six months of the year gone by, Indian investors pumped approximately $335 million into the Dubai real estate sector. The Dubai real estate market has experienced robust growth in terms of price appreciation and rental yields. “In 2023, apartment prices rose by approximately 18.3%, and villa prices by about 22.2%. The market is expected to continue this trend in 2024, with short-term rentals projected to jump by around 20% and long-term rentals by 15% compared to 2023,” says Morgan Owen, managing director, Middle East and North Africa, ANAROCK Group, a real estate services company. Growth potential The Dubai real estate market is projected to grow by about 15% in 2024, driven by a robust economy and foreign investor interest. “Dubai real estate has been very volatile over the last few years, but the last two to two and a half years has been a golden period. You have a market where you are seeing a boom,” says Sanjay Guha, Founder and CEO, Acquist, a real estate advisory firm. Golden visa and tax benefit Given its proximity to India and a sizable Indian diaspora of over 3.5 million residing in Dubai, the city has long been perceived as a second home for many Indians. “The attractive aspects of investing in Dubai include impressive rental yields, robust capital appreciation, and the stability of the Emirati Dirham (AED) being pegged to the US Dollar,” says Akash Puri, director, international, India Sotheby's International Realty. Puri adds that Dubai's "Golden Visa" initiative has also garnered significant attention from Indian investors. Acquiring property stands as the simplest way of investing and securing a Golden Visa. If your purpose of investment is to get a Golden Visa, then you need to buy a property worth at least 2 million dirhams in Dubai. This will grant you a Golden Visa for 5 years, renewable on the same conditions. “It must be noted that Dubai also has no capital gain tax, which makes investing in real estate a compelling proposition. Ease of doing business and a tax-friendly environment are a big plus,” says Puri. “What is happening is that you have an option to invest in Dubai from ₹2 to ₹2.5 crore. If you look at Mumbai, you cannot buy anything at this price in a place like South Mumbai,” says Guha. Why the HNI are investing According to Guha, a lot of HNIs invest in Dubai to de-risk their portfolio. Their primary investments remain in the Indian rupee, but they can have alternate asset classes in dollar terms, since the Dirham is pegged to the dollar. “Dubai offers rental yields of 4% to 7% annually, with no taxes on property rental income and capital gains, increasing the profitability of investments,” says Owen. There is also another advantage of investing in a Dubai property. “In Dubai, you can buy the flat, put the flat on rent, get the money in your account, pay any required taxes sitting at your home in India or anywhere in the world, it is that easy and professionally managed,” says Guha. How to invest in a property in Dubai? The Liberalised Remittance Scheme (LRS), a program implemented by the Reserve Bank of India (RBI) allows resident individuals in India to freely remit up to $250,000 per financial year (April 1st to March 31st) for any permissible current or capital account transaction or a combination of both. That is about ₹2 crore. Let us say a family is buying a property worth ₹8 crore in Dubai. Each of them can remit a maximum of ₹2 crore approximately in one financial year ending March. According to Guha, the payments to be made for a property can be done in such a way that half the payment is made at the end of a financial year and the other half is made in the next financial year. When done at the end of March this would mean only a few days gap in between, thus utilising limits for both financial years for both individuals. What to keep in mind Before investing in a Dubai property, it's crucial to conduct thorough research on the market trends and dynamics. Understanding the legal aspects related to property ownership in Dubai is paramount to ensure a smooth and compliant investment process. “When planning to buy a property in Dubai, the initial step is to clearly define the end goal: whether the purchase is for investment purposes or personal use. This clarity guides the selection process along with comprehensive market research and engaging a reputable agency which will further be invaluable in navigating the process,” says Puri. Additionally, considering the location and the reputation of the developer can significantly impact the property's long-term value.

The Indian rich is buying property in Dubai – Tax benefits to rental yields, the driving forces at play

The government on Wednesday proposed to hike the <keyword id="9215522" type="General" weightage="20" keywordseo="tcs-rate" source="Orion">TCS rate</keyword> to 20 per cent from 5 per cent currently on overseas tour packages and a liberalized remittance scheme for remittance of funds out of <keyword id="3658" type="General" weightage="20" keywordseo="india" source="Orion">India</keyword>. The Finance Bill, through the Budget 2023-24, amended Section 206C of the Income Tax Act levying a higher Tax Collected at Source (<keyword id="6357150" type="DOMAIN" weightage="20" keywordseo="tcs" botkeyword="" source="ET" sourcekeytype="COMPANY" meta.keywordsubtype="EQ" meta.aliasname="tcs" meta.entityname="Tata Consultancy Services Ltd." meta.entityid="8345" meta.seoname="tata-consultancy-services-ltd">TCS</keyword>) on overseas tour programme packages. Also, 20 per cent TCS will be applicable in cases where funds in excess of Rs 7 lakh are sent out of India under the Liberalised Remittance Scheme of the RBI. The amendments will come into effect from July 1, 2023. Nangia Andersen India Partner Amit Agrawal said the increase in TCS rate to 20 per cent is a big surprise, especially with the comfortable forex position. "The increase in TCS rates to 20 per cent for <keyword id="148355" type="General" weightage="20" keywordseo="overseas-travel" source="Orion">overseas travel</keyword> perhaps underscores the government's intention to restrict overseas travel spending by HNI's," Agarwal said. Agarwal said the step to increase TCS to 20 per cent for all remittances, other than travel and medical is likely to cause resentment and hardship amongst the middle class and HNIs. "This is especially true since many students aspire for foreign education and the cost of education and living is usually met by parents through LRS, the blanket rate of 20 per cent on all residuary remittances would mean that foreign remittance for education / maintenance is likely to be costlier owing to the 20 per cent TCS," Agrawal said. Deloitte India Partner Neeru Ahuja said TCS on overseas tour packages or liberalized remittance scheme for remittance of funds out of India has been proposed to be increased from 5 per cent to 20 per cent. "Despite the TCS being creditable in the hands of taxpayers, the same shall lead to higher cash outflow at the first instance in the hands of taxpayers," Ahuja said. Tax and consulting firm AKM Global, Tax Partner Amit Maheshwari said, "TCS has been proposed on any foreign payment without any threshold. "This would pose challenges for people intending to go for foreign travel and who wish to invest in overseas stocks as it will increase their immediate outlay," Maheshwari said. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/life-insurance-stocks-fall-up-to-10-after-budget-pushes-for-new-tax-regime/articleshow/97526113.cms">Life insurance stocks fall up to 10% after Budget pushes for new tax regime</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/budget/news/budget-blow-to-hnis-claiming-huge-deductions-for-expensive-houses/articleshow/97525649.cms">Budget blow to HNIs claiming huge deductions for expensive houses</a>

Budget proposes hike in TCS on overseas travel, fund remittances out of India to 20%

<ul><li>Investors and traders will now be able to buy and <keyword id="13296985" type="General" weightage="20" keywordseo="sell-us-stocks" source="Orion">sell US stocks</keyword> via the <keyword id="4800060" type="General" weightage="100" keywordseo="nse-ifsc" source="Orion">NSE IFSC</keyword> stock exchange.</li><li>Located in GIFT City, NSE IFSC exchange will allow trading in eight prominent <keyword id="48211" type="General" weightage="20" keywordseo="us-stocks" source="Orion">US stocks</keyword> initially, and it plans to expand this to 50 subsequently.</li><li>Find out how to buy and sell US stocks like Tesla, Apple and others via NSE IFSC.</li></ul>Tesla, Apple, Netflix, Amazon and four other prominent US stocks will now be available for traders via the National Stock Exchange’s (NSE) subsidiary in the Gujarat International Finance Tech (GIFT) City. A total of eight prominent US stocks – most of them from the tech industry – will be available for trading in the NSE IFSC exchange starting today, March 3. There are plans to extend this number to 50 stocks eventually. Here’s how you can trade in US stocks in the NSE IFSC exchange: <cmsannotation type="cmsannotation" annotationid="Which are these US stocks available for trade via NSE IFSC?" comment="subhead" text="Which are these US stocks available for trade via NSE IFSC?">Which are these US stocks available for trade via NSE IFSC?</cmsannotation> Initially, eight US stocks will be made available for trade. They are: <ul><li>Tesla</li><li>Apple</li><li>Netflix</li><li>Amazon</li><li>Alphabet</li><li>Microsoft</li><li>Meta</li><li>Walmart</li></ul>Subsequently, this number will be increased to 50, although the exact date is not known yet. <cmsannotation type="cmsannotation" annotationid="Are US stocks being listed in India?" comment="subhead" text="Are US stocks being listed in India?">Are US stocks being listed in India?</cmsannotation> No. US stocks are not being listed in India. Instead, NSE is listing its derivative product called NSE IFSC Receipts. The NSE IFSC (NSE International Exchange) will be offering trading in these receipts at a ‘low cost’. As a result, you will no longer have to invest through a US-based broker to invest in US stocks. <cmsannotation type="cmsannotation" annotationid="Will I become an equity owner of these US stocks?" comment="subhead" text="Will I become an equity owner of these US stocks?">Will I become an equity owner of these US stocks?</cmsannotation> No. Each share of the company will be split into receipts of 100, 200 and so on. You will not become an equity owner of these US companies, but you will still be entitled to corporate action benefits, like dividends. <cmsannotation type="cmsannotation" annotationid="What is the ratio of receipts of these US stocks?" comment="subhead" text="What is the ratio of receipts of these US stocks?">What is the ratio of receipts of these US stocks?</cmsannotation> <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Receipts per share </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Tesla </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">100 </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Apple </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">25 </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Netflix </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">50 </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Amazon </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">200 </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Alphabet </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">200 </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Microsoft </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">50 </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Meta </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">50 </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Walmart </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">25 </td></tr></tbody><tbody></tbody><tbody></tbody></table> <cmsannotation type="cmsannotation" annotationid="How much will I be able to invest in US stocks?" comment="subhead" text="How much will I be able to invest in US stocks?">How much will I be able to invest in US stocks?</cmsannotation> Indian retail investors will be able to invest in US stocks according to the limits set by the Reserve Bank of India (RBI) under the Liberalised Remittance Scheme (LRS). Currently, this limit is set at $2,50,000, which is approximately ₹1.9 crore. <cmsannotation type="cmsannotation" annotationid="How do I trade in these US stocks via NSE IFSC?" comment="subhead" text="How do I trade in these US stocks via NSE IFSC?">How do I trade in these US stocks via NSE IFSC?</cmsannotation> To trade in US stocks via the NSE IFSC exchange, you will have to open trading and demat accounts with brokers registered with the exchange. Once done, you will then have to add funds to your trading account in the same way that you add funds to your normal trading account. You will then be able to trade in US stocks listed on NSE IFSC. <cmsannotation type="cmsannotation" annotationid="What are the trade timings?" comment="subhead" text="What are the trade timings?">What are the trade timings?</cmsannotation> Investors and traders will be able to buy and sell US stocks in the NSE IFSC exchange from 8 p.m. to 2:30 a.m., mirroring the trade timings in the US. <cmsannotation type="cmsannotation" annotationid="What about the taxes on gains made from trading in these stocks?" comment="subhead" text="What about the taxes on gains made from trading in these stocks?">What about the taxes on gains made from trading in these stocks?</cmsannotation> Any gains made on holdings of less than two years will be considered as short-term capital gains and be taxed according to the tax slabs applicable to the individual. For holdings of more than two years, provisions of long-term capital gains will be applicable and the tax rate will be 20%, with the benefit of indexation. Indexation is the process of adjusting your investment for inflation. It is applicable on long-term investments. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/mukesh-ambanis-reliance-announced-a-partnership-with-sanmina-a-us-based-electronics-manufacturer/articleshow/89960792.cms">Reliance teams up with US-based Sanmina to create a high-tech electronics manufacturing hub in India</a> <a href="https://www.businessinsider.in/business/startups/news/mobikwiks-upasana-taku-says-all-the-companies-that-made-their-grand-entry-into-bnpl-will-have-a-grand-exit-too/articleshow/89960652.cms">INTERVIEW: Mobikwik’s Upasana Taku says all the companies that made their grand entry into BNPL will have a grand exit too</a> <a href="https://www.businessinsider.in/finance/banks/news/what-is-swift-how-does-it-work-why-is-it-important-and-how-nations-are-using-it-to-punish-russia/articleshow/89886091.cms">What is SWIFT, how does it work, why is it important and how nations are using it to punish Russia</a>

You Searched For "RBI LRS" and got 13 results

RBI to allow opening of rupee account outside India

PTI

Credit card payments on foreign tours to be brought under LRS to ensure compliance with TCS

PTI

Credit card now under LRS ambit – 20% TCS to be charged on spends using international credit cards

Anagh Pal

FEMA violation: ED seizes properties worth ₹41.64 crore of Zavareh Poonawalla

IANS

Budget 2023 proposes 20% TCS on foreign expenses under LRS

Anagh Pal

Majority of Indians named in Panama Papers Leaks may have used a legal route to have offshore assets

BI India Bureau

Bachchans debut as investors but not in India

BI India Bureau

20% tax on foreign remittances make foreign investments unviable for retail investors

Anagh Pal

Finance Bill passed in Lok Sabha amid opposition protest

IANS

New TCS regulations may pinch your wallet while travelling abroad. Here’s how you can minimise the impact

Anagh Pal

The Indian rich is buying property in Dubai – Tax benefits to rental yields, the driving forces at play

Anagh Pal

Budget proposes hike in TCS on overseas travel, fund remittances out of India to 20%

PTI

Buy and sell Tesla, Apple, Netflix, Amazon and four other US stocks in India via NSE IFSC – here’s how

Rounak Jain

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