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NRI
INVESTMENT
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Services and facilities regarding production of mineral oils
There are special provisions for computation of taxable income of non resident assessees engaged in the business of providing services or facilities in connection with, or supplying plant and machinery on hire, used or to be used, in the prospecting for, or extraction or production of mineral oils. It provides that 10 per cent of the amount paid or payable to, or the amount received or receivable by, the assessees for provision of such services or facilities or supply of plant and machinery, shall be deemed to be the taxable income of such
NRIs.
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Import of gold and silver
An NRI returning to India after staying abroad for a period of more that six months is permitted to import gold up to 10 kg and silver up to 100 kg on payment of custom duty which on gold is Rs 10 per gm for a 100 gm bar and for a tola bar it is Rs 250 per 10 gm and on silver it is Rs 500 per kg. Ornaments studded with stones and pearls will not be allowed to be imported. The passenger can bring the gold/silver himself at the time of arrival or import the same within 15 days of his arrival in India. Warehouse and pay the duty before clearance. When gold is sold in India, the profit is liable to tax as business income or capital gains, depending upon the facts of each case i.e., the intention of the
NRI. If his intention was to take advantage of the business opportunity and sell gold/silver, it will be treated as business profit. The imported gold or silver can be sold in the open market without any restrictions, but are subject to applicable sales tax and octroi duty of the respective state in which it is imported.
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Business of operation of Aircraft
There are special provisions for computing profits and gains of the business of operation of aircraft of
NRIs. It provides for determination of the income of non-resident taxpayers on presumptive basis at a flat rate of 5 per cent of the amount received or receivable for carriage of persons, livestock, mail or goods from any place in India or the amount received or deemed to be received within India on account of such carriage from any place outside India.
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Immovable property in India for NRIs/PIOs acquired by way of loans
The Reserve Bank of India has permitted authorised dealers in India approved by national housing banks to provide housing loans to
NRIs/PIOs for acquisition of residential accommodation in India by way of loan. The loan amount raised for purchase of residential accommodation can be subsequently repaid by
NRIs/PIOs by remitting funds from abroad. Such repayments in foreign exchange of rupee loans are acceptable. The payment is received though normal banking channel or by debit to their
NRE/FCNR accounts. NRIs/PIOs can freely rent out their property, whether purchased through application of forex or otherwise, without seeking any permission from the RBI. The rental income being a current account transaction is reparable outside India, only if proper tax is paid or provided for, even if it more than the prescribed installment, should be adjusted towards payment of the loan.
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Continuation of proprietary partnership business abroad
A person resident in India cannot deal in foreign exchange or enter into any transactions of receipts or payments with non-residents, unless there is a general or special permission. Besides, there are specific regulations concerning a person resident in India pertaining to foreign currency bank accounts, lending and borrowing in
forex, acquisition and transfer of immovable property outside India and so on. Therefore, it is advisable that a specific permission be obtained from the RBI in respect of these types of interests.
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Investment in a firm by non Indians
No person resident outside India other than NRIs/PIOs shall make any investment by way of contribution to the capital of a firm or a proprietorship concern or any association of persons in India. The RBI may, on an application made to it, permit a person resident outside India to make such investment subject to such terms and conditions as considered necessary.
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