CA Surin Gandhi is a Senior Investment Analyst employed with Astrolabe Holding Company. He serves as a Committee member of The Kuwait Chapter of the Institute of Chartered Accountants of India (KCICAI).

Arab Times: What are the stipulated limits for the amount of money and gold an NRI can carry when visiting India?

Gandhi: For Cash, an NRI can carry up to USD 10,000 or its equivalent in foreign currency without customs declaration.

For Gold, a male passenger is allowed to carry a maximum of 20 gms, which doesn’t cost more than Rs. 50,000 and a female passenger can carry a maximum of 40 gms which should not cost more than Rs. 1 lakh as a duty-free allowance.   

Arab Times: Is the salary transferred to an NRI account taxable if you are working from home in India?

Gandhi: If an NRI is working from home in India, the tax implications would depend on various factors, including the duration of stay in India and the residential status. If the person is working remotely for a foreign employer, his/her salary earned outside India is generally not taxable in India. However, if he/she is physically present in India for more than 182 days in a financial year while working remotely, full salary is taxable in India.

Arab Times: What must NRIs do after returning to India for good? (Bank notification)

Gandhi: Upon returning to India for good, an NRI must notify his/her bank within 30 days about the change in residential status. They need to convert their NRI accounts to resident accounts or open new resident accounts. Provide necessary documents to the bank as per RBI guidelines.

Arab Times: What is the process for NRIs to file tax returns, and are there specific guidelines or requirements that need clarification in this regard?

Gandhi: NRIs with taxable income in India if such income exceeds the basic exemption limit, need to file income tax returns before July 31st of the following year. The process involves obtaining a Permanent Account Number (PAN), filing the return online on the portal, and fulfilling other compliance requirements as necessary.

Arab Times: What emerging investment opportunities are available for NRIs beyond traditional choices like real estate and gold?

Gandhi: India’s financial landscape is evolving, and there are diverse investment options beyond traditional choices. For NRIs looking to invest outside real estate and gold, they can consider:

• Equity markets and Mutual Funds
• Startups and SMEs: Invest in high-growth Indian businesses through angel investing or venture capital funds.
• Infrastructure Bonds: Offer attractive returns with government backing and contribute to India’s development.
• Alternative Investment Funds (AIFs): Provide access to diverse assets like private equity, debt, and real estate with higher potential returns.

Arab Times: What are the challenges and issues that NRIs can face while investing in real estate in India?

Gandhi: NRIs may face challenges such as legal complexities, delays in property transactions, lack of physical presence to manage property, currency fluctuations, and lack of transparency in real estate transactions. It is crucial to conduct thorough due diligence and seek legal advice before investing.

Arab Times: What recommendations are advised for NRIs facing a limited timeframe stay in India due to delays in government processes?

• Appoint a trustworthy power of attorney to manage your affairs in your absence.
• Plan investments carefully, and consider short-term liquid investment options such as mutual funds or bonds that are easy to encash. Be aware of the regulatory and procedural delays.
• Consider renting instead of buying property unless you have a long-term commitment.
• Seek professional advice from registered wealth advisors

Arab Times: How can NRIs avoid double taxation, and where exactly do Indians end up paying taxes twice?

Gandhi: NRIs can avoid double taxation by utilizing Double Taxation Avoidance Agreements (DTAA), claiming foreign tax credits, and understanding the residential status. It is advisable to seek advice from a tax consultant to ensure compliance with applicable tax treaties and take advantage of available DTAA exemptions.

Arab Times: What are the restrictions for NRIs in India in terms of investments in India?

Gandhi: While NRIs have various investment options, there may be restrictions on certain sectors as regulated by FEMA guidelines. Some of these include:

• NRIs cannot invest in agricultural land or purchase agricultural properties directly.
• Certain restrictions apply to investments in sensitive sectors like defense and atomic energy.