1. Bank Accounts for NRIs
NRO Account (Non-Resident Ordinary Rupee Account)
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NRIs must open an NRO account after changing their status from resident to NRI.
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An NRO account allows for legitimate dues in India, remittances received from abroad, and transfers from rupee accounts of non-resident banks.
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Funds remitted to an NRO account are non-repatriable.
NRE Account (Non-Resident External Rupee Account)
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NRIs can hold an NRE account for repatriable services from outside India.
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The entire amount in an NRE account is repatriable to the NRI’s current country of residence.
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Income earned in this account is tax-exempt.
FCNR Account (Foreign Currency Non-Resident Account)
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NRIs can deposit foreign currency in an FCNR account.
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It's a fixed or term deposit available for one to five years.
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No tax implications and funds are fully repatriable upon maturity
2. Property Transactions
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NRIs can purchase residential and commercial properties in India under FEMA regulations.
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However, restrictions apply to agricultural land, plantation property, and farmhouses.
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NRIs can also receive immovable property as gifts or through inheritance
3. Remittance Limits
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When sending or receiving money to/from India, comply with FEMA’s remittance limits.
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FEMA allows a maximum of USD 1 million per financial year for repatriation, subject to specific conditions.
4. Reporting Requirements
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NRIs must fulfill reporting obligations, including filing tax returns and submitting necessary documents.
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Seeking legal advice is crucial to ensure compliance with FEMA requirements during real estate transactions in India.
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Remember, staying informed about FEMA regulations empowers NRIs to make informed financial decisions and navigate the Indian market effectively.
