| Shares |
| |
| |
The
change of residential status should be intimated to the
Company where the emigrating Indian holds shares or
debentures. A non-repatriation undertaking is also
to be given to the Company. |
| |
The
following information is to be given to the Company: |
| |
a. |
Date
of leaving India |
| |
b. |
Foreign
address |
| |
c. |
Number
of shares held and their face value |
| |
d. |
Name
and branch of the bank where the NRI's bank account is
maintained (preferably with a/c number) |
| No
permission is required for holding property in India,
while emigrating. After attaining NR status, if investment
is made in residential immovable property in India, the
rent so accrued thereon shall be credited to the NRO
account of the non-resident. |
| |
| Immovable
Property |
|
|
| No
permission is required for holding property in India,
while emigrating. After attaining NR status, if investment
is made in residential immovable property in India, the
rent so accrued thereon shall be credited to the NRO
account of the non-resident. |
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|
| Deposits
with the Companies |
| Any
income arising out of these deposits shall be credited in
the NRO account of the emigrating person. |
| |
| Loans
against Company Deposits |
| Authorised
dealers may grant loans and overdrafts to non-resident
persons against the security of deposits held by them in
Indian companies, according to their commercial judgement. |
| |
| Units
of U.T.I. and Government Bonds |
| No
permission of the Reserve Bank of India is required for
holding units of U.T.I. and bonds of the Government. |
| |
| Gold
and Jewellery |
| No
permission of the Reserve Bank of India is required for
keeping gold, jewelry and precious stones in India. |
| |
| Status |
| The
emigrating Indian can continue as a Trustee of a private
or public Trust without the permission of Reserve Bank of
India |
| |
| Continuation
as Karta of an HUF (Hindu Undivided Family) |
| The
emigrating Indian can also continue as Karta of HUF
without the permission of Reserve Bank of India. |
| |
| Continuation
as Director in a Company |
No
special permission is required by the non-resident to
continue as a director of an Indian company. There is no
restriction for recieving payments while on official duty.
Example : Visit to India for company's board meeting
Towards sitting fees / commission or remuneration as per
the company's MOA. |
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|
| Status
of loan granted before a person becomes non-resident |
| When
a person resident in India avails a loan from a bank and
subsequently attains non-resident status; he must submit
an application with the following particulars to the
relevant bank: |
| |
a. |
Country
to which the person has gone |
| |
b. |
Reasons
for leaving India |
| |
c. |
Probable
duration of the stay abroad if the person is not leaving
India permanently |
| |
d. |
Reasons
for continuance of loan or overdraft |
| Banks
may grant loans or overdrafts on security of fixed
deposits subject to usual terms and conditions except for
the purpose of relending, carrying on agriculture /
plantation activities or for investment in real estate
business. Loans can be given : |
| |
a. |
for
Investment in India |
| |
b. |
for
aquiring residential flats / houses |
| |
c. |
for
bona fide purposes outside India |
| |
d. |
against
security of NRNR deposits |
| |
e. |
against
resurgent India Bonds issued by SBI |
| against
security of immovable property (Housing Loans) |
| against
securities provided in India for utilisation abroad |
| |
| Loans
to residents against securities provided by non-residents |
| Loans
are granted to residents against security provided by
non-residents. |
| |
| Giving
Power of Attorney |
| This
Power of Attorney should preferably cover: |
| |
a. |
Portfolio
and Real Estate Management |
| |
b. |
Bank
Accounts |
| |
c. |
Applications
to RBI |
| |
d. |
Filing
of return, refunds and representing before tax and
appellate authorities |
| |
e. |
Matters
incidental to the above |
| |
| Obtaining
Income Tax Clearance Certificate |
| 1. |
Application
is required to be made to obtain a tax clearance
certificate by two categories of persons leaving India,
namely: |
| |
a. |
those
not domiciled in India; and |
| |
b. |
those
domiciled in India but who, at the time of thier
departure, have no intention of coming back to India. |
| 2. |
Normally
all direct taxes found due must be paid before the tax
clearance certificate is issued. In exceptional
cases, sucha certificate is also issued on the
production of a document of guarantee by a bank or from
anohter person which is acceptable to the Assessing
Officer issuing the certificate. |
| 3. |
The
emigrating Indian has to make an application in Form-31
to the Assessing Officer, Foreign Section for Obtaining IncomeTax
Clearance Certificate. |
| 4. |
In
case the emigrating Indian is assessed to Income Tax in
India before making the application in Form-31 he first
has to approach his Assessing Officer for issuing
authorisation in Form-32
to the foreign section confirming that he is clear of his
tax liabilities. |
| 5. |
The
Tax Clearance certificate is given in Form-33. |
