Q. 142 Are any tax concessions available to NRIs
on balances/deposits held in NRE/FCNR accounts?
Q. 143 Are similar concessions available in respect
of balances held in NRO accounts?
Q. 144 What are the tax benefits to the NRNR deposit
account holders?
Q. 145 What about tax benefits on funds held in
FCNR accounts?
Q. 146 What is the approved method of sending remittances
into India?
Q. 147 At what rates are remittances in foreign
currencies made by NRIs converted by banks into rupees?
Q. 148 Can remittances be sent into India otherwise
than through the medium of a bank in the country of residence of the remitter?
Q. 149 Can Exchange Houses draw drafts in foreign
currencies?
Q. 150 Can NRIs remit funds through Exchange Houses
for investment in Government securities, National Savings Certificates
and Units of Unit Trust of India?
Q. 151 Can NRIs remit funds through Exchange Houses
for investment in shares/debentures of Indian companies?
Q. 152 Can NRIs send drafts issued by Exchange Houses
for acquisition of residential flats in India?
Q. 153 Can NRIs remit premia on policies issued
by the Life Insurance Corporation of India by means of drafts issued by
Exchange Houses in favour of the Corporation?
Q. 154 Can NRIs remit tuition/boarding/examination
fees of their children studying in India by means of drafts issued by Exchange
Houses in favour of schools, colleges, universities, technical and educational
institutions in India?
Q. 155 Can NRIs take out of India precious stones
or jewellery purchased by them during their visit to India?
Q. 156 Can assets held in India by NRIs prior to
their becoming non-resident be repatriated outside India?
Q. 157 Can NRIs take out of India household articles
such as carpets, curios, etc., purchased out of funds in NRO accounts during
their temporary visit to India?
Q. 158 Can NRIs settle their hotel bills in India
in Indian rupees?
Section 6: MISCELLANEOUS
Q. 142 Are any tax concessions available
to NRIs on balances/deposits held in NRE/FCNR accounts?
Ans. Yes. Income from interest on moneys standing to the credit of
NRE/FCNR accounts is exempt from Income-tax. Gifts from such accounts to
close relatives are also free of Gift-tax.
Q. 143 Are similar concessions available in
respect of balances held in NRO accounts?
Ans. No.
Q. 144 What are the tax benefits to the NRNR
deposit account holders?
Ans.They enjoy the following tax benefits:
i) Income from the deposits will be free from Indian Income-tax.
ii) The deposit will also be exempt from Gift tax for one-time gifting
(in the cae of NRIs only).
iii) Exemption from Income-Tax will not be available to resident donee
and those residents, who being joint holders, become owners of the deposit
as survivor of the non-resident depositor.
Q. 145 What about tax benefits on funds held
in FCNR accounts?
Ans. Tax Exemption on interest earned on deposits held in foreign currency
is available to non-residents and persons who are not ordinarily resident
in India as defined under Income-tax Act, 1961.
Q. 146 What is the approved method of sending
remittances into India?
Ans. The approved method of sending remittances into India is through
normal banking channels.
Q. 147 At what rates are remittances in foreign
currencies made by NRIs converted by banks into rupees?
Ans. Such remittances will be converted by banks at the market rate
of exchange.
Q. 148 Can remittances be sent into India
otherwise than through the medium of a bank in the country of residence
of the remitter?
Ans. Yes. Exchange Houses in the Gulf countries have been permitted
to send remittances into India by means of DDs, MTs and TTs drawn on banks
in India.
Q. 149 Can Exchange Houses draw drafts in
foreign currencies?
Ans. Yes. Exchanges House can draw drafts in U.S. dollar or Pound sterling
on a limited number of branches of the drawee bank in India, if they have
entered into such an arrangement with the drawee bank.
Q. 150 Can NRIs remit funds through Exchange
Houses for investment in Government securities, National Savings Certificates
and Units of Unit Trust of India?
Ans. Yes.
Q. 151 Can NRIs remit funds through Exchange
Houses for investment in shares/debentures of Indian companies?
Ans. Yes, subject to general/specific permission of Reserve Bank for
such investment.
Q. 152 Can NRIs send drafts issued by Exchange
Houses for acquisition of residential flats in India?
Ans. Yes. NRIs can send drafts issued by Exchange Houses in favour
of co-operative housing societies/estate developers for acquisition of
residential flats in India in individual names.
Q. 153 Can NRIs remit premia on policies issued
by the Life Insurance Corporation of India by means of drafts issued by
Exchange Houses in favour of the Corporation?
Ans. Yes.
Q. 154 Can NRIs remit tution/boarding/examination
fees of their children studying in India by means of drafts issued by Exchange
Houses in favour of schools, colleges, universities, technical and educational
institutions in India?
Ans. Yes.
Q. 155 Can NRIs take out of India precious
stones or jewellery purchased by them during their visit to India?
Ans. Yes. NRIs can take out of India precious stones and jewellery
(both gold and non-gold) purchased by them in India, without any limit,
provided the purchase is made against payment in any convertible foreign
currency.
Q. 156 Can assets held in India by NRIs prior
to their becoming non-resident be repatriated outside India?
Ans. No.
Q. 157 Can NRIs take out of India household
articles such as carpets, curios, etc., purchased out of funds in NRO accounts
during their temporary visit to India?
Ans. Yes. RBI permits on application such requests received from NRIs
up to the value of Rs. 20,000 for such articles (other than those made
of gold or silver or those banned for exports).
Q. 158 Can NRIs settle their hotel bills in
India in Indian rupees?
Ans. Yes.