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<ul><li>Despite their physical presence abroad, NRIs maintain tax obligations on their Indian-sourced income. </li><li>The capital gains tax provisions for NRIs are similar to those for resident individuals, except for the applicability of TDS provisions. </li><li>It is important for NRIs to carefully consider their tax liabilities in both India and the country where they are a resident. </li></ul>You are a non resident Indian (NRI) if you live abroad. More specifically, you are classified as "non-resident" of India for a specific financial year as per the Income Tax Act. Despite their physical presence abroad, NRIs maintain tax obligations on their Indian-sourced income. This includes income sources such as salary received for services provided in India, interest earned from fixed deposits or savings bank accounts in India, as well as any capital gains arising from the sale of assets located in India. “NRIs are not taxed on their foreign income, which is not received in India or deemed to accrue or arise in India. However, they may be subject to tax in the country where the income is earned,” says Archit Gupta, CEO, Clear, a fintech company. <cmsannotation type="cmsannotation" annotationid="How income in India is taxed for NRIs" comment="subhead" text="How income in India is taxed for NRIs">How income in India is taxed for NRIs</cmsannotation> Let us take a look at how income in India is taxed for NRIs. <cmsannotation type="cmsannotation" annotationid="Income from salary" comment="subhead" text="Income from salary">Income from salary</cmsannotation> NRIs are subject to income tax in India on their salary if the services are rendered in India. “The income is taxed according to the income tax slabs applicable to residents,” says Akhil Chandna, Partner, Grant Thornton Bharat, a professional services firm. <cmsannotation type="cmsannotation" annotationid="Income from business and profession" comment="subhead" text="Income from business and profession">Income from business and profession</cmsannotation> Income earned by NRIs who have business connections in India is liable to be taxed in the country. The taxation of this income follows the same slab rates that are applicable to residents, and it is calculated based on the total income earned within India. <cmsannotation type="cmsannotation" annotationid="Rental income" comment="subhead" text="Rental income">Rental income</cmsannotation> There are no distinct rules for the taxation of house property in India based on residency status. The taxation rules for rental income from properties situated in India are the same for both residents and non-residents (NRIs). The rental income is taxable in the hands of the property owner, regardless of whether they are an NRI or a resident Indian. <cmsannotation type="cmsannotation" annotationid="Income from other sources" comment="subhead" text="Income from other sources">Income from other sources</cmsannotation> "Other Sources" income typically includes interest income from fixed deposits and savings bank accounts held in India, dividend income, etc. “Interest earned on Non-Residential External (NRE) and Foreign Currency Non-Resident Account (FCNR) accounts is fully exempt from tax. However, interest on non-resident ordinary (NRO) accounts is fully taxable,” says Chandna. He adds that for NRIs, income from "Other Sources" is subject to slab rates applicable to them. However, in many cases, income paid to an NRI is subject to TDS at a flat rate of 30% plus the applicable surcharge and health and education cess. <cmsannotation type="cmsannotation" annotationid="Taxation on investment gains" comment="subhead" text="Taxation on investment gains">Taxation on investment gains</cmsannotation> The capital gains tax provisions for NRIs are similar to those for resident individuals, except for the applicability of TDS provisions. The taxability of capital gains depends on the holding period and the type of investments sold. <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#e7e6e6;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Type of Shares </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#e7e6e6;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Holding Period </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#e7e6e6;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Category </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#e7e6e6;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Rate of Tax </td><td style="border-left:solid #000000 0.75pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td rowspan="2" style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Listed shares </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Less than 12 months </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Short Term </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">15% </td><td style="border-left:solid #000000 0.75pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">More than 12 months </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Long Term </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">10% on gain in excess of INR 1,00,000 </td><td style="border-left:solid #000000 0.75pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td rowspan="4" style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Unlisted Shares/ Immovable Property </td><td rowspan="3" style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Less than 24 months </td><td rowspan="3" style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Short Term </td><td rowspan="3" style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Slab Rates </td><td style="border-left:solid #000000 0.75pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td style="border-left:solid #000000 0.75pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td style="border-left:solid #000000 0.75pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">More than 24 months </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Long Term </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">20% (with indexation) </td><td style="border-left:solid #000000 0.75pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td rowspan="4" style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Debt Funds and Other Capital Assets </td><td rowspan="3" style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Less than 36 months </td><td rowspan="3" style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Short Term </td><td rowspan="3" style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">15% </td><td style="border-left:solid #000000 0.75pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td style="border-left:solid #000000 0.75pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td style="border-left:solid #000000 0.75pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">More than 36 months </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Long Term </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">20% (with indexation) </td><td style="border-left:solid #000000 0.75pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr></tbody></table> Source: Grant Thornton <cmsannotation type="cmsannotation" annotationid="Taxation on money remitted to India" comment="subhead" text="Taxation on money remitted to India">Taxation on money remitted to India</cmsannotation> Since the money being remitted is from the NRIs income in a foreign country, it may be subject to income tax in that country. “Hence, in most cases, the NRI will not have to pay income tax on the remittance in India as it is already taxed in the foreign country. Further, if the money is being remitted for personal use by the NRI's family in India, such as for their living expenses or education, there is no tax liability,” says Chandna. <cmsannotation type="cmsannotation" annotationid="How NRIs can reduce their tax liability" comment="subhead" text="How NRIs can reduce their tax liability">How NRIs can reduce their tax liability</cmsannotation> NRIs can avail tax deductions under the Indian Income Tax Act, including deductions under Section 80C for investments in specified financial instruments, Section 80D for health insurance premiums, Section 80G for charitable donations, and Section 24 for home loan interest. “NRIs can minimise capital gain tax by investing in specified assets, such as residential properties and specific bonds, within a stipulated time period,’ says Chandna. <cmsannotation type="cmsannotation" annotationid="What to do if your PAN is inoperative" comment="subhead" text="What to do if your PAN is inoperative">What to do if your PAN is inoperative</cmsannotation> An NRI is not required to obtain an Aadhaar Card in India, and hence they are not required to link their PAN and Aadhaar. However, it is likely that some NRIs will find their PANs inoperative after June 30. “This is because the residential status of the individuals may not be updated in the records of the Income Tax (IT) Department as "Non-Residents". The IT Department has clarified that NRIs whose PAN has become inoperative shall reach out to their jurisdictional AOs along with supporting documents (such as a passport copy) to prove that they are NRs in India,” says Chandna. “It is important for NRIs to carefully consider their tax liabilities in both India and the country where they are resident, as double taxation may arise if they are taxed on the same income in both countries,” says Gupta. NRIs can claim relief from double taxation under the provisions of a tax treaty (DTAA) between India and the country where they are residents or through the use of the foreign tax credit provisions under Indian tax law.

Are you an NRI having income in India? Here’s how you will be taxed

Indians who are <keyword id="144909" type="UNKNOWN" weightage="20" keywordseo="green-card-holders">green card holders</keyword> or were always excited to have one may no longer have the benefits. 
 
Indians holding a US passport have an advantage of saving on tax, concealing assets and investing in the country. 
 
But, as India and the US have decided to exchange financial information about citizens, the joyride may end soon. 
 The government has signed a <keyword id="2580775" type="UNKNOWN" weightage="20" keywordseo="US-Foreign-Account-Tax-Compliance-Act">US Foreign Account Tax Compliance Act</keyword> (FATCA) under which people will have to declare all assets and failing to do so can attract penalties and even jail. 
 
With this move, many are thinking of giving up their American citizenship. 
 
"Until now, many Indians who were American citizens would seldom reveal their Indian income and investments in the US and vice versa. However, now when that information is shared by India in the US, it could attract a lot of penalty and even some other punitive action, this has led to many NRIs (non-resident Indians) moving back to India," Lloyd Pinto, director, Grant Thornton India, told ET. 
 
Experts say that people having green card will either have to declare assets, restructure holdings or come back to Indian citizenship. 
 
Now, sending gifts and transferring assets will no longer be easy as it will attract stamp duty and an Indian tax also. 
 
Meanwhile, if you though renouncing citizenship is easy, it ain’t. 
 
You need clearance from revenue department and address formalities. 
 
(Image: Indiatimes)

Chasing that elusive US Green Card? It may be of no use to you after all!

<keyword id="2774266" type="UNKNOWN" weightage="20" keywordseo="black-money-law">Black Money law</keyword> that came into force on July 1 demands income specifics of every Indian who is working abroad and has opened a 401k account. 
 An Economic Times report states that such investment plans would be considered as foreign assets as per the <keyword id="6356023" type="UNKNOWN" weightage="20" keywordseo="Black-Money">Black Money</keyword> Law and therefore, all <keyword id="639374" type="UNKNOWN" weightage="20" keywordseo="indians-working-abroad">Indians working abroad</keyword> are supposed to provide adequate information to the <keyword id="990862" type="UNKNOWN" weightage="20" keywordseo="Indian-tax-authorities">Indian tax authorities</keyword>. In case of any miss, the person would have to face harsh penalties. 
 
Kuldip Kumar, partner at PwC India said, "There are plans where the subscriber has certain control in terms of investments — those would definitely need to be disclosed.” 
 
Professionals working overseas, however, are approaching tax practitioners for identifying disclosures that they are supposed to make. Queries around investments made by individuals in pension and endowment plans are very common as these plans may give in some benefit to the subscribers a few years down the line. 
 
As per the Black Money Law, a direct holder of an asset and a beneficial owner should essentially be named. The latter is defined as an individual who has provided, directly or indirectly, consideration for the asset for the immediate or future benefit, direct or indirect, of himself or any other person. 
 
Any future benefit plans would, therefore, be covered under this definition. 
 
Divya Baweja, partner at Deloitte Haskins &amp; Sells LLP says, "A plan such as 401k may need to be disclosed. But one would need to analyze the various plans and the vesting criterion under it closely. It should not be merely a contingent right. A view may be adopted that if you have an enforceable vested right, it is an asset and needs to be disclosed. Some clarity may be required on this." 
 
As a part of Narendra Modi’s black money crackdown, this is one last opportunity for people to declare overseas assets under a compliance window that closes on September 30. All Indians having a foreign asset can use this by paying 30% tax and 30% penalty to avoid prosecution.

Here’s what Indians residing abroad can do to avoid law suit under the Black Money Law

<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

<ul><li><keyword id="61430" type="PERSON" weightage="20" keywordseo="fuel-prices">Fuel prices</keyword> in India reached an all-time high again today partly owing to the continued depreciation of the rupee. </li><li>Rather than cutting taxes on fuel, the government is instead trying to stem the slide in rupee by selling rupee-denominated bonds to foreigners and NRIs. </li><li>A cut in fuel duties runs the risk of increasing the <keyword id="6365485" type="DEFINITION" weightage="20" keywordseo="Fiscal-Deficit">fiscal deficit</keyword> further, which will, in turn, lead to the rupee’s depreciation. </li></ul>Fuel prices in India reached an all-time high again today as <keyword id="6367091" type="UNKNOWN" weightage="20" keywordseo="petrol">petrol</keyword> was being sold for ₹80.87 a litre in Delhi and ₹88.26 a litre in Mumbai while <keyword id="6356109" type="UNKNOWN" weightage="20" keywordseo="diesel">diesel</keyword> hit ₹72.97 a litre in Delhi and ₹77.47 a litre in Mumbai. The backlash has been resounding. In addition to political mudslinging, The Congress and other Opposition parties staged a “Bharat Bandh” or series of peaceful protests around India. Some schools and government offices were shut. Truck drivers also staged demonstrations. The central government, led by the BJP, has ruled out a cut in duties on fuel. In addition to a customs duty of 2.5%, the excise duty on fuel is currently ₹19.48 per litre while it is ₹15.33 per litre for diesel. The rates have been raised nine times and decreased only once since the BJP government came to power in May 2014. The rising price of fuel is mainly due to the fact that India imports most of its oil and the rupee is currently at an all-time low against the dollar. Rather than cutting taxes on fuel, the government is instead focusing on trying to stem the slide in rupee by selling rupee-denominated bonds to foreigners and NRIs, which will make the rupee appreciate. Why is the government refusing to cut fuel prices? While protests from the Opposition indicate that the central government has a choice in the matter of fuel duties, which it does in principle, the actual reality is that it is lodged between a rock and a hard place. A affects B which affects C which affects A The government is currently dealing with a large, and growing, fiscal deficit - which occurs when its expenses outweigh its revenues. It is able to keep this deficit in check (within the range of 3% of GDP) partly owing to the duties it imposes on fuel and fuel products. However, if the government were to cut fuel duties and risk a widening of its fiscal deficit, the rate of yield on its rupee-denominated bonds would be higher in light of the increased risk associated with them. This, in turn, would make them less attractive to investors, potentially leading to further depreciation of the rupee. Hence, in order to cut fuel prices, the government would find itself in a position where the rupee was worse off than it was before, which would counteract the effects of the initial reduction in fuel duties. However, this does not mean that the government will never be able to cut taxes on fuel. Once it is able to increase revenues from duties and taxes on non-oil products, which will follow heightened GST compliance and the continued crackdown on tax evasion, then its fiscal deficit will be able to bear the brunt of a reduction in fuel duties. Countries which feature a high rate of tax compliance usually have much lower duties on fuel, relative to India. Rates can also be cut at the state level, wherein <keyword id="463828" type="PERSON" weightage="20" keywordseo="value-added-tax">value-added tax</keyword> (VAT) is imposed on fuel products. Once again, though, this depends on the state’s financial situation. Some states like Andhra Pradesh and Rajasthan, which are in better financial health, have been able to cut the VAT rate on fuel products. However, for most states like Maharashtra and Bihar, which run a deficit, a cut would be hard to stomach. Banking on RBI intervention The Indian government has asked the RBI to intervene in capital markets and prevent the rupee from depreciating further. The central bank has been withdrawing funds from its foreign exchange reserves to prop up the rupee and prevent volatility in recent months, however this hasn’t proved an adequate solution. It will likely raise interest rates for the third successive time to keep inflation and check and to prevent capital outflows.

Here’s why the Indian government is not being able to cut fuel prices

As the deadline to declare <a href="http://www.businessinsider.in/If-you-dont-want-to-attract-penalty-disclose-your-e-wallet-and-virtual-cards-details/articleshow/48806679.cms">unaccounted funds</a> is nearing, promoters of several companies are breaking a sweat and <a href="http://www.businessinsider.in/Wealthy-Indians-are-exploring-ways-to-hide-black-money-Know-how/articleshow/47265648.cms">devising plans to use undeclared cash</a> to avoid the <a href="http://www.businessinsider.in/searchresult.cms?query=black+money">black money</a> whiplash. 
 
Promoters are planning to invest in Indian capital markets or shell companies as the deadline is September 30. 
 
Many other companies are closing down old intermediary companies, floating new ones with fresh records, transferring funds to newer safe harbours and even round-tripping funds into the Indian capital markets through participatory notes and even applying for <a href="http://www.businessinsider.in/searchresult.cms?query=NRI">non-resident Indian</a> (NRI) status. 
 
<a href="http://www.businessinsider.in/searchresult.cms?query=promoters">Promoters</a> feel that after declaring unaccounted funds, government will indict them for flouting rules. 
 
Meanwhile, shutting the intermediary companies that were used to invest and then cash out in the last few months means that it would be almost impossible to find out who the final beneficiary of the <a href="http://www.businessinsider.in/Will-Indias-Black-Money-ComeHome-This-Time/articleshow/36767234.cms">money</a> is. 
 
Due to fear, some promoters are giving up their Indian citizenship and also asking sons and daughters to become NRIs so they can manage funds stashed abroad. 
 
The Indian government may not have a jurisdiction on the accounts of NRIs but it is not the main trick. 
 
ET cited a case of a chairman of a Mumbai-headquartered listed firm who routed unaccounted funds to buy equity in his own company. In the five years since, the shares have risen significantly and the stake is now valued at around Rs 850 crore. 
 "The stake is officially in the name of an investment arm owned by his nephew and his family. The promoter is now worried that with the <keyword id="6356023" type="UNKNOWN" weightage="20" keywordseo="Black-Money">black money</keyword> law kicking in, his relatives could usurp the money by threatening to expose him to the Indian tax authorities," said a tax advisor. 
 
In this instance, the promoter has gone to the US to cajole his relatives into selling the stake and investing it in equity and real estate there, the advisor said. 
 
(Image: Thinkstock)

You Searched For "tax rules for NRIs" and got 6 results

Are you an NRI having income in India? Here’s how you will be taxed

Anagh Pal

Chasing that elusive US Green Card? It may be of no use to you after all!

BI India Bureau

Here’s what Indians residing abroad can do to avoid law suit under the Black Money Law

BI India Bureau

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

BI India Bureau

Here’s why the Indian government is not being able to cut fuel prices

Dilsher Dhillon

Black money blues? Promoters are working overtime to utilise unaccounted funds!

BI India Bureau

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