How do I remit money to India?
The approved method of sending remittances is through normal banking channels. These are converted by banks at the market rate of exchange. Money can be sent through checks, demand drafts or through telegraphic and wire transfer. Wire transfer is the most preferred mode of remittance as it is cost-effective, swift, and eliminates the risk of any transit loss, possibility of which exists in the case of DD, etc. Most banks also provide for other methods of sending money to India either through net transfer or card transfer.
Is an NRI required to file a Return of Income every year?
When an NRI has total taxable income below the exemption limit, you is not required to file a return of Income Tax. Also, where the total assessable income consists of only Investment Income or LTCG and TDS has been deducted from such income, then the NRI is not when to file any Income Tax return.
If an NRI earns money from India, do they have to pay income tax?
NRI Income in India: All NRIs that have income earned in India will be taxed and should file tax returns annually. For an NRI, it is not required to file tax returns on investment gains if the tax was taken out for it at the beginning.
Who is a Person of Indian Origin (PIO)?
PIO – A Person OF Indian Origin is a foreign individual (exceptions in case of people from Pakistan, China, Iran, Bhutan, Sri Lanka, Afghanistan, Bangladesh, or Nepal). These should qualify for the following eligibility criteria, which is:
A person who at any time used to have an Indian Passport possessed by them.
A person who has a lineage of Indian origin, which means their grandparents were the residents of India as defined by the Government of India Act, 1935, and other territories that have become part of India after that. They shouldn’t be a resident of the above-mentioned countries.
A person who is a spouse of an Indian Resident or a PIO.
Read more from the Ministry of External Affairs
What is Overseas Citizenship of India (OCI)?
OCI – A pseudo citizenship scheme was established, which is known as Overseas Citizenship of India or OCI. Although this was considered to be dual citizenship, this scheme didn’t provide the individuals with the full features of dual citizenship. The restrictions applicable to the OCI are voting rights, the right to apply for government jobs, etc. Some people might mistake the OCI status for Indian citizenship but from a constitutional perspective, it cannot be considered as Indian citizenship. Read more from the Ministry of External Affairs
NRI Taxes are different from the USA vs India?
While there is a US-Indian tax treaty that claims to offer benefits, the issue is that the “Savings Clause” of the treaty negates the double-taxation prohibition. Meaning, anything earned in India is subject to US taxation. However, the foreign income exclusion applies if you are domiciled in India, and you may be entitled to a foreign tax credit for any taxes paid in India. The taxes are complicated and we highly recommend talking to CPA who knows both sides of the house. Some interesting concepts are discussed on the website.
There are also great information about the taxes on ICICI website.