makhija.ahmedabad@yahoo.com (Legal) 23 April 2009

Kindly provide information

Hi, can you please provide me detailed information on:

One of my friends is originally Indian, became NRI since settled in US and later got the US citizenship. Now he has got the “Overseas Citizens of India (OCI)". So

1. What is the tax slab for NRIs having OCI?

2. If he transfers his money to India, is there any tax? What is the maximum amount he can transfer every year?

3. Can he invest his money (earned in US) herein India to buy a property or otherwise (Fixed deposit or something)? If yes, are there any kinds of tax on it?

4. Since this is not his income earned in India, is there any kind of Tax on the amount transferred to India?

5. Tax Slab for the income earned/ generated in India.

I will obliged if one can provide point-wise detailed answers.

Thanks and regards,

Manohar

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1 Replies

A V Vishal (Advocate) 23 April 2009

1. What is the tax slab for NRIs having OCI?

Ans.The normal rates of taxes appicable to a resident individual or HUF is applicable.

2. If he transfers his money to India, is there any tax? What is the maximum amount he can transfer every year?

Ans.There is no tax on the principal amount remitted into India, however, any interest earned on the principal amount will be subject to tax. Please visit the following link

https://www.rbi.org.in/scripts/FAQView.aspx?Id=66 for your question on maximum amount that can be transferred to India.

3. Can he invest his money (earned in US) herein India to buy a property or otherwise (Fixed deposit or something)? If yes, are there any kinds of tax on it?

Ans. Yes subject to certain conditions, the following link will give you a better view of the same: https://www.rbi.org.in/scripts/FAQView.aspx?Id=33 .

4. Since this is not his income earned in India, is there any kind of Tax on the amount transferred to India?

Ans. Since the income is of foreign source and already tax suffered, there is no further tax on it in India. However, any income arising or accruing on account of application of the remitted amount in India shall be taxable.

Kindly provide information

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