nri and pio

CHENNAI3rd Floor, ‘Creative Enclave’,

148-150, Luz Church Road,Mylapore,

Chennai - 600 004.Tel: +91 - 44 - 2498 4821

BANGALORE Suite 920, Level 9,

Raheja Towers,26-27, M G Road,

Bangalore - 560 001.Tel: +91 - 80 - 6546 2400

COIMBATOREBB1, Park Avenue,

# 48, Race Course Road,Coimbatore - 641018.

Tel: +91 - 422 – 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

NRI & PIO

Shelley E.TRADE MARK DEPARTMENT



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

INTRODUCTION

• NRI - A person resident outside India who is a citizen of India. Non-Resident Indian is an Indian citizen who stays outside India for an uncertain duration of stay.

• PIO - A person resident outside India, not considered a citizen of India. A Person of Indian Origin (PIO) is usually a person of Indian origin who is not a citizen of India.



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

NRI & PIO Under INCOME TAX ACT

• The definition of a NRI is significant from the perspective of FEMA, Investment and Taxation in India. The definition of NRI under the Income Tax Act is different from that under FEMA.

• Under Section 115C (e) of the Income Tax Act,

– NRI is defined as ‘An individual being a citizen of India or a person of India origin (PIO) who is not a resident’.

– A person is deemed to be a PIO if he or either of his parents or any of his grandparents, was born in undivided India.



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

NRI & PIO FEMA rules and regulations

• NRI:– A person resident outside India who is either a

citizen of India or is a person of Indian origin (PIO).’

• A Person of Indian Origin (PIO) is a citizen of any country other than Bangladesh or Pakistan, if– a) he at any time held an Indian passport or

b) he or either of his parents or any of his grandparents was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 or c) he is spouse of an Indian citizen or a person referred to in ‘a’ or ‘b’.



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

Non Resident Indian (NRI)

•A Non Resident Indian (NRI) is an Indian Citizen, who stays outside India for an uncertain duration of stay.

•A person is a Non Resident Indian (NRI) for a given financial year if he / she fulfills any of the following conditions for that financial year:

–He / she is in India in that year for 182 days or more (This irrespective of whether the stay is a continuous period of 182 days, or in multiple parts) –In the 4 years preceding that year, he / she has been in India for a total of 365 days or more AND has been in India for 60 days or more in that year. (Again, this irrespective of whether the stay is a continuous or in multiple parts)

Note: A Hindu Undivided Family (HUF) is considered a Non Resident in a year if its management is done from outside India during that year.



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

Person of Indian Origin (PIO)

A person is called a “Person of Indian Origin” (or PIO) if he / she was ever a citizen of India, or if he / she has roots in India.

A person is called a “Person of Indian Origin” (or PIO) if:•He / she is a citizen of any country other than Pakistan / Bangladesh.•He / she held an Indian passport at any time OR- Either of his / her parents or any of his / her grand parents were a citizen of India OR•He / she is a spouse of an Indian citizen or a spouse of a person whose parents / grand parents were a citizen of India



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

Acquisition of immovable property in India By NRI and PIO

•Acquisition of immovable property in India by persons resident outside India (foreign national) is regulated in terms of section 6 (3) (i) of the Foreign Exchange Management Act (FEMA), 1999.•Agricultural/ plantation land - PIOs & OCIs cannot acquire agricultural land/plantation property/farm house in India by way of purchase •Residential/ commercial property –No permission required for purchasing residential/ commercial property in India by NRI’s and PIOs. •There are no restrictions on the number of residential / commercial properties that can be purchased.•A foreign national of non-Indian origin cannot be a second holder to immovable property purchased by NRI / PIO



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

Transfer of Property by NRI/PIO

Transferring residential/ commercial property

NRI PIO

By sale Can sell to person resident in India; NRI or PIO

Can sell only to a person resident in India

By gift Can gift to person resident in India; NRI; or PIO. If property is being gifted to a foreign national of non-Indian origin, prior permission of RBI is required

Can gift to person resident in India; NRI; or PIO. If property is being gifted to a foreign national of non-Indian origin, prior permission of RBI is required



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

Transfer of Property by NRI/PIO

Transferring agricultural/plantation/ farm house property

NRI PIO

By sale Can sell only to person resident in India

Can sell only to a person resident in India who is a citizen of India

By gift Can gift only to person resident in India

Can gift only to a person resident in India who is a citizen of India



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

Mortgage

i. NRI / PIO can mortgage to:

i. An authorized dealer / housing finance institution in India – without the approval of Reserve Bank.

ii. A party abroad - with prior approval of Reserve Bank.

ii. A foreign national of non-Indian origin can mortgage only with prior approval of Reserve Bank

iii. A foreign company which has established a Branch Office or other place of business in accordance with FERA/FEMA regulations has general permission to mortgage the property with an authorized dealer in India



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

Sale / Purchase by Foreign Embassies/ Sale / Purchase by Foreign Embassies/ Diplomats/Consulate Diplomats/Consulate

• May purchase/sell Immovable Property in India other than agricultural/plantation/ farm house property

• They should obtain clearance from Ministry of External Affairs through inward remittance of Foreign Exchange.

• The consideration for acquisition of immovable property in India is paid out of funds remitted from abroad through the normal banking channels



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

PAYMENT MODE

i. Payment can be made by NRI / PIO out ofi. Funds remitted to India through normal banking

channel orii. Funds held in NRE / FCNR / NRO account

maintained in India

ii. No payment can be made either by traveler's cheque or by foreign currency notes and also no payment can be made outside India.



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

Repatriation of Sale Proceeds by NRI/PIO

Property acquired as per rules prevalent

• In case the payment is made for acquisition out of foreign exchange sources through normal Banking Channels/NRE/FCNR the amount repatriated should not exceed the foreign currency equivalent paid.

• Capital Gains may be credited to NRO Account from which NRI/PIO may repatriate the sale proceeds abroad up to US$ 1 million per financial year subject to tax compliance

• In case the payment is made for acquisition out of balances held in NRO Account out of rupee sources NRI/PIO may repatriate the sale proceeds abroad up to US$ 1 million per financial year subject to tax compliance



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

Repatriation of Sale Proceeds by NRI/PIO

• The sale proceeds of immovable property acquired by way of gift should be credited to NRO account only. From the balance in the NRO account, NRI/PIO may remit up to USD one million, per financial year, subject to the satisfaction of Authorised Dealer and payment of applicable taxes

• Remittance will be permitted on submission of certificate of CA in form prescribed by CBDT

• Repatriation in the above cases are also restricted to not more than two such residential properties.



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

OTHER ASPECTS

•NRI/PIO can rent out the property without the approval of the Reserve Bank. The rent received can be credited to NRO / NRE account or remitted abroad.

•Powers have been delegated to the Authorised Dealers to allow repatriation of current income like rent, dividend, pension, interest, etc. of NRIs/PIO who do not maintain an NRO account in India based on an appropriate certification by a Chartered Accountant, certifying that the amount proposed to be remitted is eligible for remittance and that applicable taxes have been paid/provided for.



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

MARRIAGE & DIVORCE

Personal Laws apply to Marriage The law under which the marriage is solemnized,

whether customary or statutory law, then the same law shall be applicable.

Divorce In case of matrimonial disputes, the law under which the

marriage was solemnized, shall be applicable.

Custody of Children No straitjacket formula available under Indian Law. Best interest of the child is the penultimate deciding

criterion



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

THANK YOU

nri and pio

Economy & Finance