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Anomaly in Tax Deduction at Source (TDS) under Double Tax Treaty |
06.12.2008 |
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6th
December 2008. Shri O.P.Bhatt, Chairman, State
Bank of India, Mumbai. Dear
Shri Bhatt, Sub: Anomaly in Tax Deduction at Source (TDS) under Double Tax Treaty
While congratulating you and the team of State Bank of
India for excellent Q2 results amidst very critical times, I,
Rajesh H Dhruva, Chartered Accountant and an NRI Consultant,
am prompted to draw your kind attention about a serious anomaly and
erroneous guidance to NRI account holders from Middle-East regarding TDS
at concessional rate herein.
I also had opportunities of close association with
State Bank of India in India and UK by way of addressing innumerable
seminars organised by various branches of Gujarat, Mumbai and London;
writing articles on the subjects of Non-Resident Indians (NRI)
Regulations and India Shining series in "Namaskar"
and maiden issues of "Corporate" - in-flight magazines
of Air India last year being published as adverts of State Bank of
India and also last three editions of my booklet "Facilities for
Non-Resident Indians", both in English and Gujarati being
published by State Bank of India, Mumbai and Ahmedabad for NRI account
holders.
I am a Chartered Accountant and an Advisor to Overseas
Indians in matters pertaining to Foreign Exchange Laws,
Tax Laws, Double Tax Treaties & Investments and creator and
chief executive of :
www.nribanks.com
. only website
displaying monthly updated interest rates
of almost all banks in India in foreign currencies & Indian Rupee
deposits offered to Non Resident Indians ;
femaonline.com
a
comprehensive website. presenting edited & updated version
of Foreign
Exchange Management Act, 1999, Rules and Regulations thereunder as
also Tax Laws and Banking Regulations
pertaining to Non Resident Indians and .
nrimutualfunds.com -presenting the very best of Equity and income schemes of Indian Mutual Funds and global indices across the world in $ terms .
I am forwarding herewith my notes together with copy
of relevant provisions of Treaties wherein the required
provisions are penned in red and State Bank of India's
circular and proforma of self-declaration for your perusal.
I will be happy to provide any clarifications needed
in this matter.
With regards.
Sincerely.
RAJESH H DHRUVA
Chief Executive femaonline .com Tel. No. : 0091 281 246 3367 ; 205 3367 ; 664 3367 Cell : 0091 98240 49944.
==========================================.
Encl: Relevant
Provisions of Treaties/Notification:-
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1st December, 2008
To
The Editor,
Times of India,
Mumbai/Ahemdabad / Rajkot.
Sub: Anomalies in Article.
With reference to the above, I, Rajesh H Dhruva, Chartered
Accountant and an NRI Consultant, to inform as
under:-
I am a Chartered Accountant and an Advisor in the matters
pertaining to Foreign Exchange Laws, Tax Laws,
Double Tax Treaties & Investments and NRI's Mutual Fund
Portfolio Management. I am also Chief Executive
of :
www.nribanks.com
. only website
displaying monthly updated interest rates
of almost all banks in India in foreign currencies &
Indian Rupee deposits offered to Non Resident Indians ;
femaonline.com
a
comprehensive website. presenting edited & updated
version
of Foreign
Exchange Management Act, 1999, Rules and Regulations
thereunder as also Tax Laws and Banking Regulations
pertaining to Non Resident Indians and .
nrimutualfunds.com -presenting the very best of Equity and income schemes of Indian Mutual Funds and global indices across the world in $ terms . I have read with interest Mr. Ashish Gupta's article on the subject of "NRIs and PIOs can invest in real estate in India" in in Rajkot Plus in the Times of India, Ahmedabad edition of Monday the 24th instant. and e-edition of the Economic Times at http://economictimes.indiatimes.com/quickiearticleshow/3740588.cms .. The said article has multiple Anomalies and certain errors of omission and commission.
I am forwarding herewith my notes together with copy of
relevant regulations and copy of his article wherein the
errors are penned in red for your perusal.
I am sure you will publish the corrected content for
the benefit of readers at large. Please inform if any
clarifications are needed in this regards.
With regards.
Sincerely.
RAJESH H DHRUVA
Chief Execuitve
femaonline.com
Tel. No. : 0091 281 - 246 3367 - 305 3367 - 664 3367. Cell : 0091 98240 49944. ==========================================.
Anomalies are listed herein :-
1. It has been written that a PIO who
is a citizen of Pakistan, China or Bangladesh has restrictions in
acquiring property.
.02 But according to the provisions of Foreign
Exchange Management (Acquisition and transfer of immovable property
in India) Regulations, 2000 ,
a citizen of Afghanistan, Sri Lanka, Iran, Nepal and Bhutan
also is restricted to acquire or transfer immovable property in
India without prior permission of the Reserve Bank . [Annex -
1]
2.
It has been written that the NRI/PIO may transfer the property
without any approval from the Reserve Bank of India (RBI) to
anybody - which includes a resident of India as also another
NRI/PIO.
.02 However, a PIO can transfer by way of sale a property other than agricultural farms etc. only to a person resident in India . [Annex - 2]
3. It has been written that in
case the property is acquired from rupee funds held in India, the
remittance depends on the holding period of the property.
.02 However according to the provisions of Master Circular No. 03 /2008- 09, Dated July 1, 2008 [Annex - 3.] and also Circular No. 12 ,Dated November 16, 2006 [Annex - 4] , the lock-in period of 10 years for remittance of sale proceeds of immovable property has been dispensed with.
4. It has been written that up to one million
US$ per calendar year can be repatriated out of the balances
held in NRO accounts.
.02 However as per the provisions of Foreign
Exchange Management (Remittance of Assets) Regulations, 2000,
repatriation of one million US$ is permitted in each financial year
(April-March) [Annex - 5]
5. It has been written that ,in case of
sale, the sale proceeds of upto two properties can be remitted
outside India without RBI approval.
.02 This restrictions on remittance of sale
proceeds apply to residential properties only. An NRI has
no such restrictions as regards commercial or other
properties.[Annex - 6]
6. It has been written that, the instalments of
the loan, interest and other charges should be paid by the NRI/PIO
through remittances from outside India through normal banking
channels or out of funds in his NRE/FCNR/NRO account in India.
.02 However as per the provisions of Foreign Exchange Management (Borrowing and Lending in Rupees) Regulations, 2000, the repayment of housing loan can also be made by any relative of the borrower in India. [Annex - 7]
Enclosed please
find extracts of relevant regulations/notification in the
Annexures for your referenceand also the article published by you, whereby
anomalies are highlighted with red colour.
Encl:
Relevant Provisions of Regulations/Notifications.
Encl:
Article.
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04/11/2006
The
Governor, Reserve
Bank of India, Mumbai.
Respected
Sir,
Sub:
Anomalies in Mid-term
Review of Annual Policy for 2006-07.
I
take this opportunity to congratulate you for presenting once again a
dynamic policy, which will give further fillip to the momentum of economic
growth, while simultaneously reining the inflationary pressures. Sir, the
marathon presentation will further encourage large and small
entrepreneurs in their efforts for growth and development of their
trade and industry, which in turn will boost the growth of the Nation.
Sir,
the highlights amongst others proposes two changes, namely : -
Resident individuals would be free to remit up to US $ 50,000 per
financial year as against the earlier limit of US $ 25,000 -
-
Lock-in period for sale proceeds of the immovable property credited to the
NRO account to be eliminated, provided the amount being remitted in any
financial year does not exceed US $ one million -
Both
the proposals mention / link the limits to a "calendar year", whereas
the original regulations stipulated and have linked the limits to a
"financial year" as reflected in part of copy posted herein.
Possibly,
the intention is to delink the limits to a "calendar year", and
now link the same to a "financial year". But if it is not so, I
suggest that appropriate provisions / changes be made linking the limits
of US$ 50,000 and US$ 1 mn, respectively, to "calendar year".
I
once again take this opportunity to congratulate you and wish you the very
best in all your endeavors for taking forward the economy and the Nation
into a new era of progress and prosperity.
With
respectful regards, Sincerely,
RAJESH
H DHRUVA Chief
Executive femaonline.com ==================================================================================== RESERVE
BANK OF INDIA January
31, 2004 RBI/2004/36 A.P.(DIR
Series) Circular No.62 To Madam
/ Sirs, Liberalised
remittances facilities to NRIs/PIO and Foreign Nationals ·
Amendments
to FEMA Regulations ·
Clarificatory
Guidelines Attention
of Authorised Dealers is invited to paragraph 4 of A.P.(DIR Series)
Circular No.67 dated January 13, 2003, permitting them to allow
remittances upto USD 1 million, per calendar year, out of
balances held by NRIs/PIO/Foreign Nationals (including retired employees
or non-resident widows of Indian citizens) in NRO accounts/sale proceeds
of assets, on production of the following documents : ==================================================================================== RESERVE
BANK OF INDIA February
4, 2004 RBI/
2004/39 A.P.
(DIR Series) Circular No. 64 To Madam/Sirs, Liberalised
Remittance Scheme of USD 25,000 for Resident Individuals As
you are aware, we have been closely monitoring the macro-economic
developments of the country and initiating suitable policy changes in tune
with the changing scenario. As a step towards further simplification and
liberalization of the foreign exchange facilities available to residents,
it has been decided that resident individuals may freely remit upto
USD 25,000 per calendar year for any purpose for which a Scheme
has been formulated as detailed below:
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Respected Shri P.Chidambaram,
Sub: TDS anomalies regarding Long Term capital gains of NRIs.
Good wishes and I take this opportunity to heartily congratulate you for presentation of a progressive and balanced budget, which will definitely enhance the pace of economic development and provide an opportunity to the rural population living in the farthest corner of India to take a better share of prosperity and opportunities widening for Indians.
Sir,
vide my letter dated 3rd January, 2005, I had
forwarded submissions regarding TDS anomalies pertaining
to Short Term capital gains of Equities and Equity Schemes
and Long Term gains of Debt and Hybrid Schemes in case of
Non Resident Indians.
I once again request you to look into this aspect and provide for TDS @ 10% in case of Long Term capital gains arising out of Debt and Hybrid Schemes of Indian Mutual Funds in case of Non Residents as the rate of income-tax for such gains is prescribed at 10% vide First Proviso to Section 112 of the I.T.Act,1961.
I am enclosing copy of relevant part of Section 112 of the Income Tax Act, 1961, which provides for tax at 10% and also relevant part of THE FIRST SCHEDULE of Finance Bill 2006, which provides for TDS at 20%.
In case any clarifications are necessary, I shall be more than happy to provide appropriate assistance to the best of my ability.
Thanking you in anticipation. Sincerely,
RAJESH H DHRUVA Chief
Executive nribanks.com Tel. No. : 0091 281 2464099 / 2463367 Cell : 0091 98240 49944 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ THE FIRST SCHEDULE (See section 2) PART II RATES FOR DEDUCTION OF TAX AT SOURCE IN CERTAIN CASES In every case in which under the provision of sections 193,194, 194A, 194B, 194BB, 194D, and 195 of the Income – Tax Act, tax is to be deducted at the rates in force, deduction shall be made from the income subject to the deduction at the following rates :- 1.
In the case of a person other than a company – (b)
where the person is not resident in India – (i)
in the case of a non-resident Indian- (A) on any investment income 20 per cent; (B) on income by way of long-term capital gains referred to in section 115E 10 per cent; (C)
on income by way of short-term capital gains
referred to in section 111A
10 per cent; (D) on other income by way of long-term capital gains [not being log-term capital gains referred to in clauses (33), (36) and (38) of section 10] 20 per cent; (E)
…. ………….. [(c) in the case of a non-resident (not being a company) or a foreign company,— (i)
the amount of income-tax payable on the total
income as reduced by the amount of such long-term
capital gains, had the total income as so reduced been
its total income ; and
(ii)
the amount of income-tax calculated on such
long-term capital gains at the rate of twenty per cent
;] [Provided
that where the tax payable in respect of any income
arising from the transfer of a long-term
capital asset, being listed securities [or unit],
exceeds ten per cent of the amount of capital
gains before giving effect to the provisions of the
second proviso to
section 48,
then, such excess shall be ignored for the purpose of
computing the tax payable by the assessee.
From: keynote@nribanks.com Sent: Monday, January 03, 2005 6:11 PM Subject: TDS Anomalies re: long-term and short-term capital gains of NRIs
Shri
P. Chidambaram,, Respected Shri P.Chidambaram,
Sub : TDS Anomalies re: long-term and short-term capital gains of NRIs Good Wishes and wishing you a very happy year 2005.
While
presenting the tax proposals in the Union Budget
2004-05 as Hon. Finance Minister while recognizing
the capital gain
tax as a vexed issue ,
Sir , You have revamped the capital gain
tax by granting total tax exemption to
long-term capital gains from security transactions
i.e. equity shares and equity schemes of Mutual
Funds held for a period exceeding 12 months and short-term
capital gains thereof at 10% stating that “ the
new tax regime will be a win-win situation for all
concerned."
.01 Anomaly of 30% TDS from short term gains of equity shares & equity oriented units being taxed at 10%. .02 Anomaly of 20% TDS from long term Debt & Hybrid funds being taxed at 10%.
2.
The anomalies are detailed herein
with remedial suggestions and unless
corrective action is taken immediately, the NRIs
will definitely be shaken off from investment in
equities and equity , debt and hybrid schemes
of Indian Mutual Funds.
I once again request you to kindly look into the matter and if thought proper, request for appropriate corrections.
Thanking you in anticipation. Sincerely,
RAJESH H DHRUVA Chief
Executive nribanks.com Tel. No. : 0091 281 2464099 / 2463367 Cell : 0091 98240 49944 ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
I.
ANOMALY OF 30% TDS FROM SHORT TERM GAINS OF EQUITY
SHARES & EQUITY ORIENTED UNITS BEING TAXED AT
10 % 1.The
Finance Act, 2004 has exempted Long Term Capital
Gains [LTCGs] from Equity Shares and Units of
Equity-Oriented Funds and .02
- 30% TDS in case of STCGs - not
specifically provided – hence covered by
residual clause
– "whole
of the other income" [
paragraph 1(b) (i) (G) of PART II
OF FINANCE ACT,
2004 – Annexure-I ] 3.
THEREFORE, in case of "Non-Resident", although
tax payable on STCGs arising out of Equity Shares
and Units of Equity-oriented Funds is 10%. .02
Tax is to be deducted at 30%. 4.
This seems to be a drafting anomaly as the
intention of the Statute is to levy tax at 10%
only. 5.
This will also create serious hardships for
Non-Residents, as this will require filing of Tax
Return to claim the refund of excess tax deduction
of 20%, i.e. 30% TDS - 10% tax payable. 6.
REMEDIAL
SUGGESTION: A
Clause should be inserted in Part-II of THE FIRST
SCHEDULE of ensuing Finance Act, prescribing the
rate of TDS at 10% in case of STCGs on assets
referred to in Section 10(38) in case of "a
person not Resident in India". II.
ANOMALY OF 20% TDS FROM LONG TERM DEBT &
HYBRID FUNDS BEING TAXED AT 10% --------------------------------------------------------------------------------------------------------------------------------------
Similarly,
LTCGs arising from Units of Unit Trust of India or
Units of Mutual Funds, other than Units of
Equity-oriented Funds are taxed at the rate of 10%
by virtue of Section 112 of Income-tax Act, 1961. [
Proviso to Section 112 of the Income Tax Act, 1961
– Annexure-II ] 2.
However, provisions of Tax Deduction at Source
(TDS) require
deduction of tax at
the rate of 20% as provided in paragraph-1
(b) (i) (C) of Part II of the Finance Act, 2004. 3.
Such deduction is prescribed year after year by
relevant Finance Act and continues to be at 20%
since many years. 4.
ANOMALY
: THEREFORE, whereas
LTCGs of Debt Schemes and Hybrid Schemes of units,
i.e. Schemes other than Equity-oriented Funds are
to be taxed at 10%, .02
The tax deduction is prescribed at 20%. 5.
This seems to be a drafting anomaly as the
intention of the Statute is to levy tax at 10%
only. 6.
REMEDIAL SUGGESTION : A
Clause should be inserted in paragraph 1 (b) (i)
of Part-II of THE FIRST SCHEDULE of ensuing
Finance Act prescribing the rate of TDS at 10% in
case of LTCGs arising out of listed Securities,
Units of Unit Trust of India and Units of Mutual
Funds. ANNEXURE-I
: paragraph
1(b) (i) (G) of PART II
OF FINANCE ACT,
2004 Part
II Rates
for deduction of tax at source in certain cases 1.
In the case of a person other than a company— (b)
where the person is not resident in India— (i)
in the case of a non-resident Indian—
[(c) in the case of a non-resident (not being a company) or a foreign company,— (i)
the amount of income-tax payable on the
total income as reduced by the amount of such
long-term capital gains, had the total income as
so reduced been its total income ; and
(ii)
the amount of income-tax calculated on such
long-term capital gains at the rate of twenty per
cent ;] [Provided
that where the tax payable in respect of any
income arising from the transfer of a long-term
capital asset, being listed securities [or unit],
exceeds ten per cent of the amount of capital
gains before giving effect to the provisions of
the second proviso to
section 48,
then, such excess shall be ignored for the purpose
of computing the tax payable by the assessee. [Explanation.—For
the purposes of this sub-section,—
(a) “listed securities” means the securities— (i) as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (32 of 1956); and (ii)
listed in any recognised stock exchange in India;
(b)
“unit” shall have the meaning assigned
to it in clause (b) of Explanation to
section 115AB.] ANNEXURE-III
: PARAGRAPH1(b)
(i) (C) OF PART II
OF FINANCE ACT,
2004
Part
II Rates
for deduction of tax at source in certain cases 1.
In the case of a person other than a company— (b)
where the person is not resident in India— (i)
in the case of a non-resident Indian—
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6th
Feb. '06
Respected Shri P.Chidambaram,
Sub
: Anomalies re: tax exemption of NRE & FCNR
accounts of NRIs.
Good
Wishes and wishing you a very happy year 2006.
While critically
examining the provisions of Section 10(4)(ii) of the
Income Tax Act, 1961 , whereby income-tax exemption is
granted to Non Resident Indians on interest earned on
moneys in a Non-Resident ( External ) Account and
Foreign Currency Non Resident ( FCNR ) deposits
held in any bank in India , serious anomalies
are noticed in the Income-Tax Provisions and Foreign
Exchange Regulations.
I once again request you to kindly look into the matter and if thought proper, request for appropriate corrections.
Thanking you in anticipation. Sincerely, RAJESH H DHRUVA Chief
Executive nribanks.com Tel. No. : 0091 281 2464099 / 2463367 Cell
: 0091 98240 49944
NRE
/ FCNR interest not Tax Exempt !
1. Interest on Non Resident External ( NRE ) and Foreign Currency Non Resident ( FCNR ) deposits is exempt from Income Tax in India.
2. Said exemption is granted vide provisions of Section 10(4) (ii) of the Income Tax Act Act, 1961 ( I.T. Act ) [ Annex. 1 ]
3. Said section states as under :
" In the case of an individual, any income by way of interest on moneys standing to his credit in a Non-Resident (External) Account in any bank in India in accordance with the Foreign Exchange Regulation Act, 1973 ( 46 of 1973 ) and the rules made thereunder :
Provided that such individual is a person resident outside India as defined in clause (q) of Section 2 of the said Act or is a person who has been permitted by the Reserve Bank of India to maintain the aforesaid Account " .
4.
Now, a critical study of the section shows that the
exemption is granted as regards interest
on moneys in NRE A/c in India in accordance with
Foreign Exchange Regulation Act, 1973 ( FERA ) and rules
made thereon.
5.
THUS, since 1st June 2000, Non Resident External A/cs
are maintained and governed by the provisions of
Schedule-1 of Foreign Exchange Management ( Deposit
) Regulations, 2000 and
6. AS SUCH, presently NRE and FCNR A/cs are not maintained under FERA 1973 but are maintained under the Foreign Exchange Management Act, 1999 ( FEMA ) and further governed by Foreign Exchange Management ( Deposit ) Regulations, 2000.
7. WHEREAS , the exemption under Section 10(4)(ii) continues to exempt interest earned on NRE A/c maintained in accordance with FERA 1973.
8.
HENCE it can be concluded that NRE A/cs not being
maintained under FERA 1973 and further more as the tax
exemption under Section10(4) (ii) is granted / related
to NRE A/cs maintained under FERA 1973, it is
imperative that interest earned on NRE and FCNR A/cs
maintained under Foreign Exchange Management (
Deposit ) Regulations, 2000 is not exempt vide
provisions of Section 10(4) (ii) of I.T. Act.
.01 Section 10(4)(ii) should be appropriately amended. The exemption should be linked to Non Resident External and Foreign Currency Non Resident A/cs maintained under the regulations Foreign Exchange Management Act, 1999.
.02 Such amendment should be made retrospectively , giving effect to the changes since 1st day of June, 2000.
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Annexure
1 :
Section 10(4) of Income Tax Act, 1961 Incomes
not included in total income. 10.
In computing the total income of a previous year of any
person, any income falling within any of the following
clauses shall not be included [(4)
(i) in the case of a non-resident, any
income by way of interest on such securities or bonds as
the Central Government may, by notification in the
Official Gazette67,
specify in this behalf, including income by way of premium
on the redemption of such bonds: 68[Provided
that the Central Government shall not specify, for the
purposes of this sub-clause, such securities or bonds on
or after the 1st day of June, 2002;] 69[70(ii)
in the case of an individual, any income by way of
interest on moneys standing to his credit in a
Non-Resident (External) Account in any bank in India in
accordance with the Foreign Exchange Regulation Act, 1973
(46 of 1973), and the rules made thereunder: Provided
that such individual is a person resident outside India as
defined in clause (q) of section 271-73
of the said Act or is a person who has been permitted by
the Reserve Bank of India to maintain the aforesaid
Account;]]
Following second proviso to sub-clause (ii)
in clause (4) of section 10, which was inserted by
the Finance (No. 2) Act, 2004, w.e.f. 1-4-2006, shall be
omitted by the Finance
Act, 2005, w.e.f. 1-4-2006:
Provided further that nothing contained in
this sub-clause shall apply to any income by way of
interest paid or credited on or after the 1st day of
April, 2005 to the Non-Resident (External) Account of such
individual; Annexure 2 :
Regulation 5 of Foreign Exchange Management
(Deposit) Regulations, 2000
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HURRAY - NRE/ FCNR INTEREST TAX EXEMPTION CONTINUES |
28.02.2005 |
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Dear Friends
Good wishes.
It is indeed a joyous moment, which calls for celebrations, but the credit goes to Shri P. Chidambaram. Many, many thanks to Hon'ble Minister whose action will not only regain the confidence of NRI but will go a long way in strengthening their economic ties with India. Well, on behalf of nribanks.com and my personal behalf, we sincerely thank Shri P. Chidambaram for kindly considering the submissions made out in our Memorandum as also numerous representations of NRIs across the Globe. As made out in our Memorandum, the tax was not the issue. The issue was the possible hardship of preparing accounts, filing tax returns, assessment procedures and so on and so forth. To summarize, it can be stated that - .01 interest earned on Non-Resident External [NRE] Account; and .02 interest earned on Foreign Currency Non-Resident [FCNR] Accounts; will continue to be exempt from income-tax in India.
2. It may be noted that the income-tax was leviable w.e.f. 01-04-2005 and as such, till date, no income-tax was levied.
3. NOW, as the exemption is restored, in effect, interest earned on NRE & FCNR Accountsnever becomes taxable and continues to be exempt from income-tax.
5. Similarly, interest earned on Resident Foreign Currency [RFC] Account in case of Returning-NRIs, which was exempt, was also proposed to be taxed w.e.f. 01-04-2005.
6. NOW, the said interest of RFC Account will also continue to be exempt from income-tax till the Returnee-NRI's Residential Status under the Income Tax Act remains as "Non-Resident [NR]" or "Resident but Not Ordinarily Resident [RbutNOR]".
6. It may be noted that interest earned on Non-Resident Non-Repatriable [NRNR] Account and State Bank of India's India Millennium Deposits [IMDs] was not proposed to be taxed, and hence, was tax-free and continues to be tax-free.
7. Of course, interest earned on Non-Resident Ordinary [NRO] Account has been liable to tax and continues to be. NO
DOUBT , in spite of the continuation of tax
exemption, the returns/yields of Mutual Funds
outperformed the interest offers on NRE/FCNR
Deposits and Mutual Fund Schemes continue to offer
more profitable alternatives to Savings and Deposit
Accounts of NRIs. II.
As more interest earning and tax-free
alternatives for INR as also Foreign
currency Deposits, Mutual Fund schemes score
better. These are –
.01
India Millennium Deposits [IMDs] being State Bank
of India’s Bonds offered in Dec, 2000 and due
for maturity on 30-12-2005. .02
Yield to maturity app. 4.50% up.a. .03
As the transaction is facilitated by Sellers’
Bankers who provide a guarantee to deliver the
Bonds to the Buyer,upon receipt of the funds, the
transaction of sale and purchase can be taken up
at almost no risk. .04
However, this Scheme is not open for Residents of
USA and Canada. 2.Foreign
Currency Deposits in Far East and Middle East – Foreign
Currency Deposits being offered by India Centric
Banks at attractive rates of interest. .02
The interest rates offered are tax-free in the
Country of Deposit. .03
The Deposit and interest are fully reparable., and .04 The interest rates are comparatively better than interest rates offered in India, .05
As interest rates world over are on the rise , it
is appropriate to place deposits for 1 or at the
most 2 years. - US$ 3.52% p.a. ; GBP 5.11% p.a. and Euro 2.36% p.a.
Best wishes.
RAJESH
H DHRUVA nribanks.com Tel.
No. : 0091 281 2464099 / 2463367 |
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