NRI Desk

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NRI Desk

NRI Desk

@ NRI Desk we help you for

  • Invest in Mutual Funds, Equities, & other permissible financial assets.
  • Open DEMAT a/c, NRO/NRE & PIS Bank a/c .
  • Manage Investing through NRO or NRE a/c as per your Need.
  •  Provide you with tax reports.
  • INDIAN tax fillings.
  • Tax / Legal Services through our Associate Professionals.
  • Resident to Non-Resident & vise-a-versa Process

NRI Types

Definition of residential status is defined under various Laws, e.g.
FEMA, Income tax act, Citizenship act.
For investment & banking purpose we consider FEMA (Foreign Exchange Management Act) definition.
As per the provisions of act a person is either

  • Resident & ordinarily Resident
  • Resident but not ordinarily Resident
  • Non-resident Indian (also include Overseas citizen of INDIA / Person of INDIAN origin)
    As Non resident You can maintain following types of bank accounts
  • NRO a/c- Non resident Ordinary account (second holder can be Resident/NRI)
  • NRE a/c- Non resident External account (second holder can be Resident relative*/NRI)
  • FCNR a/c- Foreign currency Non-Resident account (For Foreign currency deposits & tax efficient)
  • RFC a/c- Resident Foreign currency account (For returning NRIs to get credit of foreign assets)
    *Resident relative as per FEMA ,RBI regulations

INDIA is one of the favourite investment destinations for NRIs as it has delivered better earnings than developed economies even after considering depreciation of Indian currency with other popular currencies like USD/Pound/EURO.
For taxation please refer to Tax Tab on this page.
If you need any help for a/c opening or repatriation of money, Tax reports on INDIAN investments for filing your foreign tax returns, do write here.

NRI Tax Info

Tax Treatment for maturity payments of Insurance Policy.

  • All living benefit receipts from life insurance policy in the hands of individual is tax exempted u/s 10(10D) if Sum Assured is at-least 10 times of annual premium in each policy year.
  • All death benefit receipts from life insurance policy in the hands of nominee is tax exempted u/s 10(10D).
  • All annuity/income (receipts – premium paid) from pension policies in the hands of individual (if status is NRI at the time of receipt) will be treated as ‘income from other sources’. Insurance Company will deduct TDS @ 30% + Cess + Surcharge u/s 195 on such income.

Forms

Forms for NRIs Download Link
PAN CARD For NRI Form Download
Online PAN CARD For NRI Online Form
Apply Now

Country wise Tax Benefits

Different Tax Rates for Different Countries for NRIs, OCI.

Country
Tax Effect
Middle East No Income Tax
USA Gains (maturity received less Premium paid) is taxable, however, it is taxed @ 10% as per DTAA with India
UK Gains (maturity received less Premium paid) on Foreign Life insurance policy held by a resident in UK is taxable as per prevailing income tax rates
Canada Gains (maturity received less Premium paid) is taxed at applicable slab rates
Australia Tax exempt if:-
•Policy Term is 10 years or more
•No partial/full surrender in 10 years
In other cases, incremental value is taxed at applicable rates after 30% standard deduction
New Zealand Tax exempt in case lump-sum is received; monthly income is taxable as per slab
Singapore Tax exempt if invested in Life Insurance outside Singapore
Thailand Tax exempt – Interest build-up, Maturity Proceeds and death benefits are exempt from income tax
China Income from life insurance policy on withdrawal / maturity / death benefit  by a NRI/OCI is not taxable
France Gains is taxable. Taxpayer to choose either prevailing Income tax rates or fixed rates (whichever is lower):
Policy Term >=4 but <=8 years:  15%, Policy Term >8 years: 7.5%
In addition to above, the social security taxes are applicable upon termination of the ULIP policies.
Germany Gains i.e. maturity received less Premium paid will be taxable.  However, only 50% of the income is taxable, if both of the below conditions are satisfied: • Withdrawal of money after 12th year of policy; and • Age of beneficiary is 62 years or more at the time of withdrawal/maturity.
Netherlands (a) Term Policies – Proceeds of death exempt upto EUR 6744 & rest is taxable as per box 3 rate i.e. @ 30%
(b) Endowment policies – Proceeds are exempt upto EUR 1,23,428 and balance is taxable as per box 3 rate i.e. @ 30%
Ireland and Denmark Gains (maturity received less Premium paid) on Life policies on maturity, surrender shall taxed  @ 40%
Sweden Annual Yield Tax – Surrender value on 1 January MULTIPLIED by the average Swedish Government borrowing rate, minimum of 0.5%, MULTIPLIED by 30%. Effective rate of Tax is ~0.45% for 2018
Belgium Trad & Term –  Taxable as per prevailing Income Tax rates
ULIP – At the time of premium payment – Annual insurance premium tax @ 2% of premium paid every year.  At the time of Maturity/living benefits – Tax Exempt
South Africa Gains (maturity received less Premium paid) is taxed at applicable slab rates
Hong Kong Any gains from Life Insurance Policies is not taxable
Japan Proceeds during lifetime are not taxable. Death benefit above 5 million yen is subject to inheritance tax
 Philippines Income from life insurance es excluded from Income and shall be exempt from taxes [Tax Code Sec. 32(B)(1) & Sec. 32(B)(2) of Philippines Income Tax Law]
 Luxembourg Gains (maturity received less Premium paid) on are taxable as per prevailing income tax rates ranging from 0% to 42% depending on annual income
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