NRIs…Welcome to  India.

Thinking  to  Set-up  your business in India…?   You have landed on the right place.   You  can incorporated and  manage your business  in India, without even visiting  here.

At Finance Domain, our experts provide you complete support, starting from locating a registered office, initial registrations,  business modelling, financial compliance,   to overseeing routine business transactions. 

Tax  Advisory  and Compliances:

NRIs face peculiar Tax issues, both under Income Tax as well as Goods and Services Tax. We have been providing efficient tax solutions to NRIs, over a decade. We provide a full-fledged support in :

• Tax planning and designing tax efficient financial  transactions

• Advisory on taxability of certain  business dealing.

• Advisory on Tax Saving Investments.

• Filing Income Tax Returns (ITR) & related Tax compliances

• Liaison with the Tax officials / authorities

• Handling Tax notices and assessments

Thus, a visiting NRI whose total income in India is up to ₹15 lacs during the financial year will even now remain NRIs as long as stay in India does not exceed 181 days. By this concession, millions of middle classes are saved from the clutches of the Income Tax.

Thus, for efficient financial planning of NRIs, 2 elements need to be monitored:

• Number of days stay in India and

• Taxable Income earned in India.

Secondly, an Indian citizen who is not liable to be taxed in any other country or territory shall be deemed to be resident in India. Again, the people in genuine employment outside India are kept out of the purview of this section.
The main purpose of this amendment seems to be targeted towards the habitual tax offenders who “manage” their stay in India so as to avoid payment of tax.

Importantly, for making Investment related decisions, status as non-Resident should be determined as per Foreign Exchange Management Act (FEMA). As per FEMA, a person is Not a Resident in India if he/she have been in India for a period Not More than 182 days during the preceding financial year.

As per Indian Income Tax laws, until the Financial year (FY 2019-20), Person residing in India for more than 181 days in a financial year were treated as Residents and people with stay period of less than 181 days were treated as Non –resident (NRI).

However as per the Finance Act 2020, the period of stay in India is reduced from 181 to 120 days in a financial year, for a person earning Income more than ₹15 lacs in India during the financial year.