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Q: If an individual of Indian origin staying abroad has to remit some money to his parents in India, will such repatriation of money to India affect the taxability of the parents?

A: Repatriation of money to parents of an individual will not be liable to be taxed in India in the hands of the parents. This is because gifts made to relatives are not taxable as per the Income‐tax...

Q: Whether dividend income earned by a non-resident individual or foreign company from an Indian company is taxable?

A: The dividend income earned by a non – resident individual or foreign company from an Indian Company is exempt from tax in India as the company distributing the dividend is liable to pay dividend...

Q: What kind of immovable property can be purchased by NRIs by way of purchase?

A: An NRI under general permission of RBI can acquire by way of purchase any immovable property other than agricultural land/ plantation property/ farm house in India.

Q: How can purchase considerations given by NRI to house building agencies/ seller of properties can be remitted back in case of cancellation of booking of flat?

A: Refund of application / earnest money / purchase consideration made by the house building agencies / seller on account of non-allotment of flat / plot / cancellation of bookings / deals for...

Q: Can a foreign national of non-Indian origin be the second holder to immovable property purchased by an NRI?

A: No, foreign national of non-Indian origin cannot be the second holder to purchase the immovable property by an NRI

Q: Can residential/commercial property be mortgaged by NRI?

A: Yes, An NRI/PIO can mortgage residential/commercial property to: * An authorized dealer/housing finance institution in India without the approval of the Reserve Bank. * A party abroad with...

Q: Can foreign embassies/ consulate generals purchase/sell immovable property in India?

A: Yes. They can purchase and sell any immovable property with prior clearance from the Government of India, Ministry of External Affairs. The payment should be made by means of foreign inward...

Q: How does NRI dematerialize securities purchased while he/she was resident?

A: As per FEMA rules, NRI must regularize his/her holdings to reflect the change of status - in this case, bring them to 'Non-Resident' status. For this, NRI must submit (if not already submitted to...

Q: What are the procedures to be followed in respect of investments in securities in case person resident in India become NRI?

A: On becoming an NRI, a new depository account with appropriate NRI status is to be opened and all the balances held in an account with 'Resident' status should be transferred to the account with NRI...

Q: Can NRI purchase a security in the secondary market? What are the approvals required in the new FEMA rules?

A: Purchases made in the secondary market are investments under the Portfolio Investment Scheme. Permission to buy in the market is given by authorized dealers under the Portfolio Investment Scheme on...