Who are Treated as NRI as per RBI or Tax Department

vasu123 · Post by **vasu123** » Sat Apr 30, 2016 9:02 pm

Who are treated as NRI as per tax rules. i know who ever has indian passport and living in foreign countries. But how come Green Card holders and People who are on Temporary work VISA treated same for Tax rules? Some CAs are saying these tax rules (like NRIs can't buy Agricultural land in india) are applicable to GC holders and not for who are working on VISA in usa. is there any time limit for visa people like if one has been in usa from 10 yeras or something like that to be considered as NRI and apply these special tax rules on investment in india?

Lot of desi people working on H1 visa in usa as non-immigrants. I think it would be good if RBI or FEMA should allow VISA people to invest on mutual funds in india and allow to buy agricultural lands and remove this FBAR conditions. it does not make any sense to treat visa people same as GC holders. These visas are temporary non immigrant visas and they give 3 years at a time.

Desi · Post by **Desi** » Sat Apr 30, 2016 9:18 pm

When you are living and earning in USA, you are a resident of USA and subject to USA tax laws. FBAR and investments in foreign mutual funds being treated as PFIC are USA conditions/requirements and not India's. Indian mutual funds have agreed to provide information on US investors to USA and to avoid such reporting many of them have decided not to accept US investors in those funds - kapish?

vasu123 · Post by **vasu123** » Sat Apr 30, 2016 9:24 pm

Desi;629768When you are living and earning in USA, you are a resident of USA and subject to USA tax laws. FBAR and investments in foreign mutual funds being treated as PFIC are USA conditions/requirements and not India's. Indian mutual funds have agreed to provide information on US investors to USA and to avoid such reporting many of them have decided not to accept US investors in those funds - kapish?

Thank you sir. That's what i thought about Mutual Funds and FBAR ( rule from USA, not from india). But what about buying Agriculture Land in india, i think this rule is from india.
i think RBI and FEMA would categorize two different conditions on these rules, one is NRIs who are GC holders and other should be NRIs on VISAs.

Desi · Post by **Desi** » Sat Apr 30, 2016 9:28 pm

vasu123;629771Thank you sir. That's what i thought about Mutual Funds and FBAR ( rule from USA, not from india). But what about buying Agriculture Land in india, i think this rule is from india.

Yes, NRIs and foreigners cannot purchase agricultural land in India - it ia a govt rule.

bmukherji · Post by **bmukherji** » Sat Apr 30, 2016 9:55 pm

vasu123;629771.......i think RBI and FEMA would categorize two different conditions on these rules, one is NRIs who are GC holders and other should be NRIs on VISAs.

RBI and FEMA can implement new rules based upon what the Indian Parliament decides. What chances are there that legislators will be very deeply concerned about an issue concerning people who are mostly
non-participant in the election process?

Manissh · Post by **Manissh** » Mon May 23, 2016 4:17 pm

Taxable incomes for NRIs include:

Salary:

Property and Assets:

Securities and Investments:

Presently, as per Income Tax Act,1961 and Foreign Exchange Management Act (FEMA), you qualify to pay taxes in case you fulfill either of the following conditions: