I’m an NRI (non resident Indian) residing in Europe and having an NRO (non-resident extraordinary) account in India in my identify. My spouse and I wish to purchase euros from the funds I’ve in my NRO account after we go to India. Can my spouse additionally buy euros from the funds in my NRO account?
—Name withheld on request
Under the trade management legislation, a person could remit outdoors India as much as $1 million per monetary yr from the NRO account topic to fee of relevant taxes in India.
Accordingly, you could buy euros from funds in your NRO account in India because the account is in your identify. However, your spouse could not be capable of buy euros out of your account.
I’m 45 years outdated and work with an FMCG main. I shall be shifting to France for a job as a marketing consultant for the following few years. What would be the tax implications of being an abroad marketing consultant? Can I cut back my tax legal responsibility whereas complying with tax laws in India?
—Name withheld on request
The taxability of your earnings in India will depend upon the next:
a) Residential standing
b) Source of earnings
c) Place of receipt of earnings
An particular person qualifying as ‘Resident and Ordinarily Resident (ROR)’ is taxable on worldwide earnings and is required to report his belongings outdoors India in his Income-tax Return.
However, if the person qualifies as ‘Non Resident (NR)’ or ‘Resident but Not Ordinarily Resident (NOR)’ is taxable solely on India sourced earnings (i.e. earnings earned or obtained in India).
Residential standing is set based mostly on bodily presence of a person in India throughout a monetary yr (FY) and the previous 10 FYs. Residential standing is dynamic and desires recent dedication annually.
In your case, you will want to first decide your residential standing in India. If you qualify as ROR, your abroad consultancy earnings shall be taxable in India. However, for those who qualify as NR / NOR, abroad consultancy earnings is not going to be taxable in India except it’s obtained immediately right into a checking account in India or derived from career arrange in India. Benefits could also be claimed below the Double Taxation Avoidance Agreement (DTAA) between India and France.
Sonu Iyer is tax associate and folks advisory providers chief, EY India.
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