Readers Questions/Answers Page
Four
 Information
provided is for general knowledge only and should not be deemed
to be professional advice. For professional advice kindly
consult professional immigration advisors or tax consultants
depending on your personal situation. This website is a one
person operation, Please spell check your questions as I
normally just cut and paste questions from emails. Answers to
most questions asked are usually posted within five days.
Answers are posted on this website and no personal emails are
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Email questions to: V. K. Chand at:
question@nriinformation.com
Answers are normally posted in three days.
Taxation in India for Foreign Citizens
Q. Dear Sir,
I have been told that US Citizens returning to India should pay dual income tax (USA & India). Is this true? If I return to India after becoming a US citizen and if I choose to work in India, should I file my US & Indian tax return? Thanks in advance!
Krishnan, Viswa
A. I am assuming you are referring to US citizens working in India for their US employers.
India and the United States have a tax treaty so that their citizens can avoid double taxation. Where you pay taxes will depend on the number of days in a taxation year that you work in India. Whether its less or more than 183 days.
When US citizens pay income tax by filling tax returns in foreign countries with whom the United States has tax treaties, they are given a foreign tax credit when filling their US tax return so as to reimburse them for some of the income tax they paid abroad.
For more information on the tax treaty between India and the United States of America I am posting the link, please check here.
Funds
Required to Travel Abroad
Q. Dear sir/ madam,
I am presently working in Qatar. My parents are visiting us in the next
week. As they are going to stay with us, I have asked to carry only 100
US$. Is there any requirement to carry minimum foreign currency for this
visit? With best regards, Mihir Shah, Qatar
A. Many countries require that visitors have sufficient funds to
maintain themselves during their visit. If you have the funds and can
show that you will be looking after your parents as they will be staying
with you. I doubt if it matters how much money they bring with them. I
am not familiar with travel related to Qatar.
OCI Holder
Buying Flat in India
Q. Hello Sir, I have found your site from a Google
search and I was wondering whether you can help me with this question.
I am a US Citizen that holds an OCI card.
I am interested in investing in a flat in India with the sole purpose of
reselling after a 5-6 years and reconverting the amount back in US
Dollars. Is this even possible? Is there a limit on the amount of Rupees
I can convert to US Dollars. And where would the taxes be paid on such a
transaction? Thanks, Thomas Kunnumpurath
A. As a OCI holder you can purchase a flat in India. Once the property
is sold, you can reconvert the money into US dollars and bring it back
to the United States. However you can only bring back the amount you
originally submitted. The profit will be taxed as capital gains in
India.
Unfortunately, many properties are bought and sold with cash that is
unaccounted for and is commonly referred to as black money. Many buyers
insist on paying a sizeable amount of money in cash and there is no
record of such a payment.
India no longer has a foreign currency shortage and it is now quite easy
of any Indian citizen to submit funds abroad as long as the transaction
is done via legal banking channels and the source of the money can be
accounted for. When selling a property in India one should insist on
getting maximum amount of money for the sale by way of bank cheques and
drafts.
Taking Maid to India
Q. Hi I am Kenyan citizen but Indian origin
i was born in India i am planning to come back India for good but i want to know that if i want to come with my maid who is Kenya by born, than what is the procedure. what kind of documents will required for the maid for life long. As we are planning to come back with OCI visa. So kindly advice. thank you. Sejal
A. Taking a maid to India from abroad is something new. Normally its the other way around. If you are really serious you should check with the Indian consulate in Kenya. Perhaps you can also check with an immigration consultant.
Apply for OCI after Renouncing it
Q. Can a person reapply for O.C.I after renouncing it ? (point 42 of
you f.a.q titled 'OCI' frequently asked questions) If so, what is
involved?
Best Regards, Sumit.
A. OCI application form includes a question: "Have you/any member of
your family applied for OCI registration earlier? Yes/No - If yes, give
details (Reference No., when and where applied and what was the outcome)
Anyone who has renounced OCI and reapplies will I assume fill this part
clearly stating they had renounced OCI in the past and the decision
whether to grant OCI again will depend on the government authorities.
If you have renounced OCI and would like to share the reasoning behind
such a move with other readers of this website, do email us. We do NOT
publish email addresses.
Is Pan
Card Mandatory in India
Q. Dear Sir,
Your website is very informative but I still need more information about
PAN. I want to apply for PAN as it is mandatory now in India. Before
moving to US, we had property and bank accounts etc. there. Now if we
apply for PAN, does it effect our previous assets in any way?
With regards and thanks,
A. Pan card is mandatory in India only if you have taxable income that
requires filling of tax in India. Pan card is not mandatory for Indians
settled abroad who have no income to file in India.
Having a Pan number does not effect your property or assets in any way.
Pan number is just a method of identity used by the income tax
department in India. Something like your US social security number.
If you have a pan number and no income to declare then you do not have
to file a income tax return in India. For further information on your
personal tax status in India you should perhaps consult a qualified
accountant.
Readers comments & feedback. Post your comment or answer a question . . .
M E SHAJI
2010/12/2 3:06 am
I am a OCI and working in india. can I take foreign currency for my
business visit to abroad?
Deepak
2010/12/8 6:51 am
You sure can. There are no strict restrictions now about taking foreign
currency out of India.
Charlie
2011/1/15 3:01 pm
Dear Sir
I am a Canadian Citizen and an OCI holder. I recently got a job in India
after 3 months of searching in India and likely to join during 1st week
of february. Will I have to pay tax as Indian citizen ? how much tax
will be for annual salary of 12 lakhs.. Please advise
K S Raj
2011-03-22 14:34:21
I have fixed deposits in my Residential accounts in India. I have my
OCI. I am a canadian citizen and Green card Holder in USA. Indian banks
deducts taxes on my Interest even after providing the 15 H form and
later they say they did it by mistake and I can claim it by filing tax
returns. Is it possible to file tax returns and get back my money? I
bought a Property in India by getting loan from SBI. Is there any
benefit if i get the possession befre march 31st.
A Ghosh 2011-06-06 19:27:57
Dear Sir I am performing artist and a UK citizen. I was born in India
and make frequest visits. But I am wondering whether having a OCI status
would allow me to perform (as I would be earning from my performances)
in India. In which case do I have to apply for a PAN card and file tax
in India. What is the threshold value in terms of taxable income over a
financial year - after which I have to file tax in India?
Anish Nanda 2011/8/8 11:59 am
Hi,
I am living in Canada since last 4 years. Recently I became a Canadian
Citizen in April 2011 and have now acquired my OCI only July 1, 2011. I
am now returning to India in September 2011. I have sold my house here
in Canada and will be transferring the money to my bank account in
India.
What are taxation rules? Is there some rule that if I return to India in
September, the taxation rules are different as compared to returning in
October which makes it less than 6 months of the financial
year?
Regards,
Anish
Kanna Poonan 2011/8/14 9:58 pm
Dear Sir, I am a NZ citizen who holds a PIO card as we were originally
from India. My wife holds an OCI card and we pland to return to India to
settle permanently. Would I be able to convert my PIO to an OCI as the
PIO expires every 15 years? Thanks
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