Transfer of immovable property has always been a hot topic, encompassing various methods such as sale, gift, relinquishment, and extinguishment of rights. While the domestic transfer of gifts is generally permissible, gifting immovable property to or from Non-Resident Indians (NRIs) is governed by the Foreign Exchange Management Act (FEMA). This blog discusses the nuances of …
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Working abroad can be an exciting opportunity, but before leaving your home country, there are important things to consider. If you are an Indian citizen working overseas for more than 181 days, you will be classified as a Non-Resident Indian (NRI). This classification has implications for your financial accounts and investments back in India. In …
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A filed appeal challenges the order passed by the Income Tax Appellate Tribunal on November 29, 2019, for the Assessment Year 2012-13. The appellant’s counsel argues that the ITAT made an error by allowing the capitalisation of interest on fixed deposit receipts (FDRs) earned during the construction period without appreciating that the assessee did not …
Acquiring or transferring immovable property by Indian residents outside India and non-residents in India is considered a capital account transaction and is subject to restrictions. The acquisition is governed by sections 6(3), 6(4), and 6(5) of FEMA and FEM (Non-debt Instruments) Rules, 2019. In some cases, RBI approval is mandatory to purchase immovable property in …
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The Non-Resident (External) Rupee Account Scheme, or NRE, is governed by Part II para 4 of RBI FED Master Direction No. 14/2015-16 dated 1-1-2016 and Schedule I of FEM (Deposit) Regulations, 2016. The instructions for opening and maintaining the account are given in Schedule 1 to Foreign Exchange Management (Deposit) Regulations, 2016. The key features …
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Foreign Direct Investment (FDI) is an important source of capital for startups in India. The government has introduced various regulations to facilitate FDI in the startup sector. In this article, we discuss the regulations and reporting requirements for FDI in startup companies in India via an issue of Convertible notes. What is Convertible Note Convertible …
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Acquiring property in India can be a complex process, particularly for those who reside outside the country. Indian citizens living abroad, known as Non-Resident Indians (NRI), are subject to specific regulations when it comes to purchasing or investing in Indian properties. The Foreign Exchange Management Act (FEMA) of 1999 and the notifications issued under it …
Foreign Direct Investment (FDI) is allowed in Limited Liability Partnerships (LLPs) in India, subject to certain conditions. LLPs are a relatively new form of business structure in India that were introduced in 2008. This type of business structure is a hybrid of a partnership and a private limited company, which allows for flexibility in management …
The Mumbai ITAT has ruled in favor of the assessee, holding that the liaison office (LO) of a Swiss company’s subsidiary in India does not qualify as a permanent establishment (PE). As a result, the addition of business income of Rs. 1.50 crore, attributed to 50% of the income from repairs and maintenance and integrated …
Property is a well-liked investment option in India due to its ability to produce a steady stream of income through rental payments. NRIs who own property in India can lease it out and receive rental income, which is considered taxable in India. The tax is classified under the “Income from House Property” category and is …
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