| Special
Facilities Available To NRI
|
SPECIAL FACILITIES AVAILABLE TO
NON RESIDENT INDIANS
NRIs whether they are Indian passport holders or
foreign passport holders, including second, third
and fourth generation NRIs have made the country proud
by their hard work and achievements in their adopted
countries. Many of the NRIs who had left the shores
of India with only education provided by the country
and inherent entrepreneurial capabilities, have established
themselves as prominent citizens in their adopted
countries as entrepreneurs, businessmen, professionals
and skilled workmen. However, their ties with their
motherland are strong and they have the desire to
contribute to the economic and social development
of their motherland. NRIs have the potential for investment
and providing entrepreneurial and professional skills
for the economic development of India.
India embarked on the path of liberalisation in 1991.
Since then the Government has been progressively liberalising
the industrial policy, the foreign collaboration policy,
trade policy and bringing in economic and financial
reforms to attract investments. Appreciating the role
of Non Resident Indians in the economic development
of the country, the Government has progressively announced
various schemes to facilitate investment by Non Resident
Indians.
In the following paragraphs the Indian Investment
Centre has attempted to highlight special facilities
available to Non Resident Indian Nationals, Persons
of Indian Origin and Overseas Corporate Bodies.
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For the purpose of investments
in India, a Non Resident Indian (NRI)
means a person resident outside India or who is
a citizen of India or is a Person of Indian Origin.
Person of Indian Origin (PIO) means
a citizen of any country other than Bangladesh,
Pakistan or Sri Lanka, if:
he at any time held Indian passport;
or
he or either of his parents or any
of his grand-parents was a citizen of India by virtue
of the Constitution of India or the Citizenship Act,
1955 (57 of 1955);
or
the person is a spouse of an Indian
citizen or a person referred to in sub-clause (a) or
(b).
Overseas Corporate Body (OCB) means a company,
partnership firm, society and other corporate body owned
directly or indirectly to the extent of at least sixty
per cent by Non Resident Indians and includes overseas
trust in which not less than sixty per cent beneficial
interest is held by Non Resident Indians directly or
indirectly but irrevocably.
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| Investments
with Repatriation Benefits |
| Automatic Route
With the progressive liberalisation of foreign
direct investment policy, foreign direct investments
including NRI investments up to 100% (subject to sectoral
equity caps/statutory ceilings) with repatriation benefits
can be made without any prior approval except in the
following cases:-
Industiral Licence is required – Industrial Licence
is required for manufacture of items reserved for the
public sector, industries which require compulsory licensing
and where the proposal attracts locational restrictions.
Certain specified activities like civil aviation, housing
and real estate development, etc.
FDI is sought in excess of specified sectoral caps.
Foreign investment more than 24% in the equity capital
of units manufacturing items reserved for the Small
Scale Sector or companies registered as Small Scale
Units.
The foreign entity has previous tie-up(s) in India.
Acquisition of shares of an existing share holder in
an Indian company.
A trading company incorporated in India and primarily
engaged in exports and registered as Export House/Trading
House/Star Trading House/Super Star Trading House with
the Ministry of Commerce and Industry, Department of
Commerce, Government of India, may issue shares/convertible
debentures up to 51% under the automatic route. In the
case of newly set up trading companies primarily engaged
in exports, issue of shares is subject to the condition
that registration as an Export House/Trading House/Star
Trading House/Super Star Trading House is obtained,
before remittance of dividends to the foreign investor.
In addition, the following special schemes are available
for investments:-
Export Oriented Units
Free Trade Zone/Export Processing Zones
Software Technology Parks
Electronic Hardware Technology Parks
Special Economic Zones
Existing companies with expansion programmes can also
issue shares under the automatic route subject to the
condition that increase in equity level must result
from the expansion of equity base without acquisition
of existing shares and the proposed expansion programme
is in sector(s) under the automatic route.
Existing companies without expansion programme can issue
shares under the automatic approval scheme if they are
engaged in industries under the automatic approval route
and increase in equity level is from expansion of the
equity base.
The investment by NRI/OCB can be either through inward
remittance through normal banking channels or from the
NRE/FCNR(B) account of the investor.
The Indian company is required to give a report not
later than 30 days from the date of receipt of the investment
and another report in form FC-GPR, within 30 days of
issue of shares to the Reserve Bank of India.
Government Approval
Where the company is not eligible for automatic
approval, prior approval from the Secretariat for Industrial
Assistance/Foreign Investment Promotion Board of the
Government of India is required.
ADR/GDR/FCCB Route
Indian company can, with the approval of the Ministry
of Finance, issue American Depository Receipts/Global
Depository Receipts/Foreign Currency Convertible Bonds.
Special Facilities available for Investment
by NRIs and OCBs
(i) Housing and Real Estate
100% investment with repatriation benefits is allowed
in the following areas:-
Development of serviced plots and construction of residential
premises
Investment in real estate covering construction of residential
and commercial premises including business centres and
offices
Development of townships
City and regional level urban infrastructure facilities
including both roads and bridges
Investment in manufacture of building materials
Investment in participatory ventures in (a) to (e) above
Investment in Housing Finance Institutions
Prior permission is required for such investments.
(The Government has recently allowed FDI in the development
of integrated town ships subject to prescribed guidelines).
(ii) Civil Aviation
100% investment by NRIs/OCBs is permitted.
Prior permission is required for such investments.
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| Investments
on Non -Repatriation Basis |
Investment in Companies
NRIs, PIOs and OCBs may without any limit purchase
on non-repatriation basis shares or convertible debentures
of an Indian company issued by public issue or private
placement or right issue.
Note: Purchase of shares or convertible debentures
of an Indian company engaged in agricultural/ plantation
activities or real estate business or construction
of farm houses or dealing in Transfer of Development
Rights and Nidhi companies and chit funds shall not
be permitted.
Investment in Firms and Proprietary Concerns
Non Resident Indian Nationals and Persons
of Indian Origin resident outside India may invest
by way of contribution to the capital of a firm or
proprietary concern in India provided:
Amount invested is received either by inward remittance
through normal banking channels or out of permissible
accounts maintained with an authorised dealer/bank.
The firm or proprietary concern is not engaged in
agricultural/plantation activity or real estate business.
Amount invested shall not be eligible for repatriation.
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Purchase
and Sale of Securities other than Shares or Convertible
Debentures of an Indian Company by NRIs and OCBs
|
A Non Resident Indian or Person of Indian Origin
or an Overseas Government dated securities (other
than bearer securities) or treasury bills or units
of domestic mutual funds;
bonds issued by a public sector undertaking (PSU)
in India.
A Non Resident IndianCorporate Body may, without limit,
purchase on repatriation basis:
or an Overseas Corporate Body may, without limit,
purchase on non-repatriation basis:
Units of Money Market Mutual Funds
Non Convertible Debentures
Commercial Papers (OCBs are not permitted)
Make deposits with Companies
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NRIs and PIOs may purchase/sell shares and/or convertible
debentures of an Indian company, through a registered
stock broker on a recognised stock exchange, subject
to the following conditions:-The NRI/PIO designates
a branch of an authorised dealer for routing his
transactions relating to purchase and sale of shares/convertible
debentures under this scheme and route all such
transactions only through the branch so designated;
The paid up value of shares of an Indian company
purchased by each NRI or PIO both on repatriation
and on non-repatriation basis does not exceed 5%
of the paid up value of shares issued by the company
concerned.
The paid up value of each series of convertible
debentures purchased by each NRI/PIO both on repatriation
and non-repatriation basis does not exceed 5% of
the paid up value of each series of convertible
debentures issued by the company concerned.
The aggregate paid up value of shares of any company
purchased by all NRIs and PIOs and OCBs does not
exceed 10% of the paid up capital of the company
and in the case of purchase of convertible debentures
the aggregate paid up value of each series of debentures
purchased by all NRIs, PIOs and OCBs does not exceed
10% of the paid up value of each series of convertible
debentures.
provided that the aggregate ceiling of
10% may be raised to 24% if a special resolution
to that effect is passed by the General Body of
the Indian company concerned.
The NRI or PIO investor takes delivery of the shares
purchased and gives delivery of the shares sold.
Payment for purchase of shares and/or debentures
is made by inward remittance in foreign exchange
through normal banking channels or out of funds
held in NRE/FCNR Account maintained in India if
the shares are purchased on repatriation basis and
by inward remittance or out of funds held in NRE/FCNR/NRO/NRNR*/NRSR*
account of the NRI/OCB concerned maintained in India
where the shares/debentures are purchased on non
repatriation basis.
Remittance/Credit of Sale/Maturity proceeds
of Shares and/or Debentures
The net sale/maturity proceeds of shares and/or
debentures of an Indian company purchased by NRI/PIO
under this scheme may be allowed by the designated
branch of the authrorised dealer to be:-
Credited to NRSR* account of the NRI/PIO investor
where the payment for purchase of shares and/or
debentures sold was made out of funds held in NRSR*
account, or
Credited to his NRO/NRSR* account where the shares
and/or debentures were purchased on non-repatriation
basis, at the investors option, or
Remitted abroad or credited to his NRE/FCNR/NRO/NRSR*
account where the shares and/or debentures were
purchased on repatriation basis at the investors’
option.
Other Facilities
General permission has been granted for transfer
of shares/convertible debentures by a person resident
outside India as under:-
for transfer of shares/convertible debentures held
by a person resident outside India other than NRI/OCB
to any person resident outside India provided that
the transferee should have obtained permission of
Central Government if he had any previous venture
or tie-up in India through investment in any manner
or a technical collaboration or trade mark agreement
in the same field or allied field in which the Indian
company whose shares are being transferred is engaged;
NRIs/OCBs are permitted to transfer shares or convertible
debentures of Indian company to another NRI/OCB;
A person resident outside India is permitted to
transfer shares/debentures of an Indian company
to a resident by way of gift.
NRIs/PIOs/OCBs are not allowed to buy shares in
print media.
*Regarding NRNR/NRSR accounts, please see Chapter
on Bank Accounts.
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1. Non Resident (External) Rupee Accounts
Scheme - NRE Accounts
Eligibility:
Non Resident Indians (NRIs), Persons of Indian Origin
(PIOs) and Overseas Corporate Bodies (OCBs) are
permitted to open and maintain NRE accounts with
authorised dealers and with banks (including co-operative
banks) authorised by the Reserve Bank of India (RBI)
to maintain such accounts.
The account should be opened by the Non Resident
account holder himself and not by the holder of
the power of attorney in India. (Opening NRE accounts
in the names of individuals/entities of Bangladesh/Pakistan
nationality/ownership requires approval of RBI)
Types of Accounts
Accounts may be in the form of Savings, Current,
Recurring or Fixed Deposit accounts.
Permitted Credits
Proceeds of remittances to India in any permitted
currency.
Proceeds of personal cheques drawn by the account
holder on his foreign currency account and of travellers
cheques, bank drafts payable in any permitted currency
including instruments expressed in Indian rupees
for which reimbursement will be received in foreign
currency, deposited by the account holder in person
during his temporary visit to India, provided the
authorised dealer/bank is satisfied that the account
holder is still resident outside India, the travellers’
cheques/drafts are standing/endorsed in the name
of the account holder and in the case of travellers’
cheques, they were issued outside India.
Proceeds of foreign currency/bank notes tendered
by account holder during his temporary visit to
India, provided (i) the amount was declared on a
Currency Declaration Form (CDF), where applicable,
and (ii) the notes are tendered to the authorised
dealer in person by the account holder himself and
the authorised dealer is satisfied that account
holder is a person resident outside India.
Transfers from other NRE/FCNR accounts.
Interest accruing on the funds held in the account.
Interest on Government securities and dividend on
units of mutual funds, provided the securities/units
were purchased by debit to the account holder’s
NRE/FCNR account or out of inward remittance through
normal banking channels.
Maturity proceeds of Government securities including
National Plan/Savings Certificate as well as proceeds
of Government securities and units of mutual funds
sold on a recognised stock exchange in India and
sale proceeds of units received from mutual funds,
provided the securities/units were originally purchased
by debit to the account holder’s NRE/FCNR
account or out of remittances received from outside
India in free foreign exchange.
Refund of share/debenture subscriptions to new issues
of Indian companies or portion thereof, if the amount
of subscription was paid from the same account or
from other NRE/FCNR account of the account holder
or by remittance from outside India through normal
banking channels.
Refund of application/earnest money made by the
house building agencies on account of non-allotment
of flat/plot, together with interest, if any (net
of income-tax payable thereon), provided the original
payment was made out of NRE/FCNR account of the
account holder or remittance from outside India
through normal banking channels and the authorised
dealer is satisfied about the genuineness of the
transaction.
Any other credit if covered under general or special
permission granted by Reserve Bank.
Permitted Debits
Local disbursements
Remittances outside India
Transfer to NRE/FCNR accounts of the account holder
or any other
person eligible to maintain such account.
Investment in shares/securities/commercial paper
of an Indian
company or for purchase of immovable property in
India within
prescribed regulations.
Any other transaction if covered under general or
special permission
granted by the Reserve Bank.
Rate of Interest
In accordance with the directions/instructions issued
by the Reserve Bank of India.
Loans against Security of Funds held in the account
To the account holder
i) For personal purposes or for carrying on business
activities (except agricultural/plantation activities/investment
in real estate business).
For making direct investment in India on non- repatriation
basis.
iii) For acquisition of flat/house in India for
his own residential use.
To third parties - the loan should be utilised
for personal purposes or for carrying on business
activities (other than agricultural/plantation activities/real
estate business). The loan should not be utilised
for relending.
Loans outside India - Aurthorised dealers
may allow their branches/correspondents outside
India to grant fund based and/or non-fund based,
facilities to Non Resident depositors or to third
parties at the request of depositors for bona fide
purpose against the security of fund held in the
NRE accounts and also agree to remittance of funds
from India if necessary, for liquidation of outstandings.
Change of Resident Status of account
holder
NRE Accounts should be redesignated as resident
account or the funds held in these accounts may
be transferred to the Resident Foreign Currency
(RFC) Accounts (if the account holder is eligible
for maintaining RFC Account) at the option of the
account holder immediately upon the return of the
account holder to India (except where the account
holder is on a short visit to India).
Repatriation of funds to Non Resident
Nominee
Can be allowed by the authorised dealer/bank in
the case of deceased account holder.
Miscellaneous
Joint Accounts in the names of two or more Non Resident
individuals may be opened provided all the account
holders are persons of Indian nationality or origin.
When one of the joint holder become resident, the
authorised dealer may either delete his name or
allow the account to continue as NRE account or
redesignate the account as resident account at the
option of the account holders. Opening of these
accounts by a Non Resident jointly with a resident
is not permissible.
An Account may be opened in the name of eligible
NRI during his temporary visit to India.
Operation by Power of Attorney - allowed
for withdrawals for local payments and to facilitate
investments in India. Power of Attorney holder is
not allowed to repatriate funds held in the account
under any circumstances or make payment by way of
gift to a resident on behalf of the account holder
or transfer funds from the account to anotherNRE
account.
Special Series of Cheques
Temporary Overdrawings – permitted
from NRE Savings Bank account up to Rs. 50,000 for
a period not exceeding two weeks.
Remittances abroad by Resident nominee –
application for meeting the liabilities if any of
the deceased account holder or similar other purposes,
should be forwarded to Reserve Bank of India for
consideration.
Tax Exemption – Interest income exempted
from income tax, balances held are also exempt from
wealth tax.
Reporting – Transactions to be reported
to the Reserve Bank of India.
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2. Foreign Currency (Non Resident) Account
(Banks) Scheme – FCNR (B) Accounts
Eligibility
NRIs and OCBs are eligible (approval of Reserve
Bank is required in the case of those from Bangladesh
and Pakistan).
Accounts may be opened with funds remitted from
outside, existing NRE/FCNR accounts, etc.
Remittances should be in the designated currency.
Conversion to currency other than the designated
currency also permitted at the risk and cost of
the remitter.
Designated currencies: Pound Sterling, US Dollar,
Deutsche Mark, Japanese Yen, Euro.
Types of Accounts
Term Deposits of maturity - one year or above but
less than two years, two years and above but less
than three years, and three years.
Rate of Interest
In accordance with the directions issued by the
Reserve Bank of India.
Permissible Debits/Credits
Same as in the case of NRE accounts.
Rate for conversion of rupees into designated
currencies and vice versa
As per rate on the date of conversion.
Inland Movement of Funds
Permitted/allowed at no extra cost to the remitter.
Payment of Interest
On half yearly or yearly basis as desired by the
depositor.
Interest may be credited to a new FCNR(B) account
or an existing/new NRE/NRO/NRNR*/NRSR* account in
the name of the
account holder at his option.
Loans/Overdrafts against Security of
funds held in the account
Same as in the case of NRE Account.
Change of Resident Status of the account
holder
When an account holder becomes a person resident
in India, deposits may be allowed to continue till
maturity at the contracted rate of interest if desired
by the account holder. However, except for the provisions
relating to rate of interest and reserve requirements
as applicable to FCNR(B) deposits, for all other
purposes, such accounts shall be treated as resident
deposits from the date of return of the account
holder to India. On maturity the deposits should
be converted into Resident Rupee Deposit Account
or RFC account at the option of the account holder.
Joint Account, Repatriation of Balances,
etc.
As in the case of NRE accounts.
Reporting
Transactions in these accounts are to be reported
to the Reserve Bank of India in accordance with
the directions issued from time to time.
Other Features
Reserve Bank will not provide foreign exchange guarantee.
Lending of resources mobilised by authorised dealers
under these accounts are not subject to any interest
rate stipulations.
The premature withdrawal of deposits for opening
NRNR* account with a different authorised dealer
will attract penalty.
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3. Non Resident Ordinary Rupee (NRO)
Account Scheme - NRO Accounts
Eligibility
Any person resident outside India can open NRO Account.
(Opening accounts by those from Bangladesh, Pakistan
requires approval of Reserve Bank of India).
The account holder should furnish an undertaking
to the authorised dealer/bank at the time of opening
of the account that in cases of debits to the account
or investment in India and credits representing
sale proceeds of investments/disinvestments he will
ensure that such investments/disinvestments will
be in accordance with the regulations made by Reserve
Bank of India.
Post offices in India may maintain savings bank
accounts in the names of persons resident outside
India.
Types of Accounts
Accounts may be in the form of Savings, Current,
Recurring or Fixed Deposit Accounts.
Credits
Proceeds of remittances received in any permitted
currency from outside India through normal banking
channels or any permitted currency tendered by the
account holder during his temporary visit to India
or transfers from rupee accounts of Non Resident
banks.
b) Legitimate dues in India of the account holder.
Debits
All local payments in rupees including payments
for investment.
Remittances outside India of current income in India
of the account holder net of taxes.
Remittances of funds held in NRO Accounts
a) Permitted in the case of foreign tourist visiting
India.
Funds received by way of remittances from outside
India in foreign exchange which have not lost their
identity as remittable funds will be considered
by Reserve Bank for remittance outside India.
Loans/Overdrafts
To account holders
i) for personal purposes or for carrying on business
activities
except for relending, agricultural/plantation activity
or for investment in real estate business.
ii) Overdrafts subject to commercial judgement.
Joint Account with Residents
Permitted
Change of Resident Status of Account
Holder
From Resident to Non Resident - When a person
resident in India leaves India for a country (other
than Nepal and Bhutan) for taking up employment
or for carrying on business or vocation outside
India or for any other purpose indicating his intention
to stay outside India for an uncertain period, his
existing account should be designated as NRO account.
From Non Resident to Resident – On
return of the account holder to India for taking
up employment or for carrying on business or vocation
or for any other purpose indicating his intention
to stay in India for an uncertain period the NRO
account may be re-designated as resident rupee account.
Payment of funds to Non Resident Nominee
The amount due/payable to Non Resident nominee from
the account of a deceased account holder shall be
credited to NRO account of the nominee with an authorised
dealer/authorised bank in India.
Reporting
Transactions to be reported to Reserve Bank of India.
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4. Non Resident (Non Repatriable) Rupee
Deposit Scheme - NRNR Accounts*
Eligibility
Any person resident outside India (except individuals/entities
of Bangladesh/Pakistan nationality/ownership) may
open NRNR accounts with an authorised dealer. Account
should be opened in Indian rupees out of funds remitted
from outside India through normal banking channel
in freely convertible currency. NRIs/OCBs can open
such accounts from their existing NRE/FCNR deposit
accounts.
Period of Deposit
Six months to 3 years.
Rate of Interest
Banks are free to determine the rate of interest.
Repatriability
Only interest accrued is repatriable.
Renewal/Transfer
Principal amount of deposit together with interest
accrued thereon may be renewed for a further period
ranging from six months to three years. If the interest
accrued on an existing deposit is invested under
the scheme, the amount of interest so invested will
not be eligible for repatriation. The account can
also be shifted from one authorised dealer to another.
Gift
Individual deposit holder can gift to any resident/Non
Resident/charitable trust in India.
Joint Accounts with Residents
Permitted.
Loans/Overdrafts - against the security of
these deposits permitted to account holders/third
parties for personal purposes or for carrying on
business activities (except agricultural/plantation
activities/real estate business/relending) subject
to commercial judgement of the authorised dealer.
Nomination
Nomination in favour of either a resident or Non
Resident permitted. Registration of nomination of
Non Resident will be subject to the condition that
the amount standing to the credit will be non-repatriable.
Reporting
Transactions to be reported to the Reserve Bank
of India.
5. Non Resident (Special) Rupee Account
- NRSR Account*
Eligibility
NRIs (other than nationals of Bangladesh/Pakistan)
are eligible.
Conditions
The principal as well as interest is non-repatriable.
2. Accounts carry same facilities and restrictions
as are applicable to
domestic accounts of residents; investment in shares/securities
or immovable property will be governed by regulations
applicable to such investments by Non Residents.
Application Form
For opening of these accounts an application in
form NRSR has to be made to the authorised dealer.
Types of Accounts
Current, Savings, Recurring or Fixed Deposit.
Joint Accounts
May be held with residents.
Rate of Interest
As applicable to resident accounts.
Change of Resident Status of the Account
Holder
Account Holder has the option of designating his
existing domestic account as NRO account or NRSR
account.
Nomination Facility
Available in favour of resident or Non Resident.
Non Resident nominee will not be entitled to any
remittance facility.
Overdrafts
Permitted subject to the commercial judgement of
the authorised dealer.
Miscellaneous
Operation of this account may be allowed freely
as in the case of domestic account maintained by
the resident individuals.
The account holders are also permitted to transfer
funds from NRO/NRE/FCNR accounts to NRSR Accounts
but not vice versa.
Safeguards for opening of and granting
Loans against Non Resident Deposits
In order to safeguard the interest of Non Resident
depositors the Reserve Bank of India has issued
the following instructions to authorised dealers
regarding opening such deposit accounts and while
granting loans and advances against such deposits:-
Fixed deposit receipts should be handed over or
sent to depositors directly against acknowledgement.
Loans against NRE/FCNR(B) deposits to third parties
should be granted only when the depositor himself
executes the loan documents in the presence of bank
officials and a witness acceptable to the bank.
Advances to third parties against such deposits
should not be granted on the basis of Power of Attorney.
Where a fraud has been perpetrated in a Non Resident
account and there is no involvement of the concerned
Non Resident depositor and his innocence has been
proved to the satisfaction of the bank, banks may
pay the deposit proceeds to the depositor on due
date even when the investigation is in progress.
Banks may, however, obtain necessary documents including
an indemnity bond with an acceptable surety from
the Non Resident depositor before releasing the
amount.
In the event of death of Non Resident depositor,
banks need not insist on succession certificate
as a matter of routine. Since different countries
follow different procedures for issuing succession
certificates, banks should take a practical view
and ascertain the procedure followed in the country
of residence of the depositor; and thereafter, obtain
such minimum documents for their record as would
satisfy the requirements of their being rightful
claimant.
*With a view to providing full convertibility of
deposit schemes for NRIs and rationalising the existing
Non Resident deposit schemes, it has been decided
to discontinue NRNR account and NRSR account schemes,
with effect from 1st April, 2002.
Accordingly:
Existing accounts under NRNR account scheme may
be continued only up to the date of maturity. The
authorised dealer shall give notice to the account
holder that the maturity proceeds shall be credited
to his/her NRE account. The account holder can choose
to credit the maturity proceeds to his/her NRE account
(Savings or Current) or open a fresh NRE term deposit
account, or credit even to his/her NRO account.
If no reply is received from the account holder,
the maturity proceeds may be credited to his/her
NRE account.
Existing term deposits under the NRSR account scheme
will continue till the date of maturity and maturity
proceeds credited to the NRO account of the account
holder.
Existing NRSR accounts other than term deposits,
shall not be continued after 30th September, 2002.
The account holder can opt to close the account
or credit the balance to his/her NRO account. If
no response is received from the account holder
the authorised dealer may close the account and
transfer the balance to the NRO account of the account
holder.
The existing facility for premature withdrawal will
continue.
In the case of premature closure of term deposits
both under NRNR and NRSR Schemes, the option of
reinvesting shall be restricted to the NRO account
of the account holder.
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| Acquisition
of Immovable Property in India
|
For the purpose of acquisition
of immovable properties in India, a person of Indian
origin means an individual (not being a citizen
of Pakistan, Bangladesh, Sri Lanka, Afghanistan,
China, Iran, Bhutan or Nepal) who
at any time held an Indian passport;
or
who or either of whose father or whose
grandfather was a citizen of India by virtue of the
Constitution of India or the Citizenship Act, 1955 (57
of 1955).
Acquisition and Transfer of Property in India
by an Indian Citizen resident outside India
A person resident outside India who is a citizen of
India may –
acquire any immovable property in India other than agricultural
land/plantation property/farm house
transfer any immovable property in India to a person
resident in India
transfer any immovable property other than agricultural
land/plantation property/farm house to a person resident
outside India who is citizen of India or to a person
of Indian origin resident outside India.
Acquisition and Transfer of Property in India
by a Person of Indian Origin
A person of Indian origin resident outside India may
–
acquire any immovable property other than agricultural
land/farm house/plantation property in India by purchase,
from out of (i) funds received in India by way of inward
remittance from any place outside India or (ii) funds
held in any Non Resident account maintained in accordance
with the provisions of the Act and the regulations made
by the Reserve Bank under the Act;
acquire any immovable property in India other than agricultural
land/farm house/plantation property by way of gift from
a person resident in India or from a person resident
outside India who is a citizen of India or from a person
of Indian origin resident outside India;
acquire any immovable property in India by way of inheritance
from a person resident outside India who had acquired
such property in accordance with the provisions of the
foreign exchange law in force at the time of acquisition
by him or the provisions of these Regulations or from
a person resident in India;
transfer any immovable property in India other than
agricultural land/farm house/plantation property, by
way of sale to a person resident in India;
transfer agricultural land/farm house/plantation property
in India, by way of gift or sale to a person resident
in India who is a citizen of India;
transfer residential or commercial property in India
by way of gift to a person resident in India or to a
person resident outside India who is a citizen of India
or to a person of Indian origin resident outside India.
Acquisition of Immovable Property for carrying
on a Permitted Activity
A person resident outside India who has established
in India a branch, office or other place of business
for carrying on in India any activity, excluding a liaison
office, may –
acquire any immovable property in India, which is necessary
for or incidental to carrying on such activity:
Provided that
all applicable laws, rules, regulations or directions
for the time being in force are duly complied with;
and
the person files with the Reserve Bank a declaration
in the Form IPI not later than ninety days from the
date of such acquisition;
transfer by way of mortgage to an authorised dealer
as a security for any borrowing, the immovable property
acquired in pursuance of clause (a).
Acquisition of Agricultural Land/Plantation
Property/Farm House
All requests for such acquisitions by persons resident
outside India have to be made to the Chief of General
Manager, Reserve Bank of India, Central Office, Exchange
Control Department, Foreign Investment Division, Mumbai
400 001.
Resident Indians holding agricultural land/plantation
property/farm house, on acquiring foreign nationality
have to regularise the holding of the immovable property
by applying to the Reserve Bank of India. The same is
applicable for inheritance of agricultural land/plantation
property/farm house by foreign nationals of Indian Origin.
Repatriation of Sale Proceeds
In the case of acquisition of immovable property for
carrying on a permitted activity, the person or his
successor shall not, except with the prior permission
of the Reserve Bank, repatriate outside India the sale
proceeds of the immovable property.
In the event of sale of immovable property other than
agricultural land/farm house/plantation property in
India by a person resident outside India who is a citizen
of India or a person of Indian origin, the authorised
dealer may allow repatriation of the sale proceeds outside
India, provided the following conditions are satisfied:-
the immovable property was acquired by the seller in
accordance with the provisions of the foreign exchange
law in force at the time of acquisition by him or the
provisions of these Regulations;
the amount to be repatriated does not exceed (a) the
amount paid for acquisition of the immovable property
in foreign exchange received through normal banking
channels or out of funds held in Foreign Currency Non
Resident Account or (b) the foreign currency equivalent,
as on the date of payment of the amount paid where such
payment was made from the funds held is Non Resident
External account for acquisition of the property; and
in the case of residential property, the repatriation
of sale proceeds is restricted to not more than two
such properties.
Remittances out of Inherited Assets
NRIs/PIOs are now permitted to remit up to US $ 100,000
per calendar year out of assets in India acquired by
them by way of inheritance/legacies.
Prohibition on Acquisition or Transfer of Immovable
Property in India by citizens of certain countries
No person being a citizen of Pakistan, Bangladesh, Sri
Lanka, Afghanistan, China, Iran, Nepal or Bhutan without
prior permission of the Reserve Bank shall acquire or
transfer immovable property in India, other than lease,
not exceeding five years.
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|
| Further
Liberalisation for NRIs
|
Loans from NRI Relatives
On Repatriation Basis
An individual resident in India is permitted
to obtain loan not exceeding US $ 250,000 from
his close relatives resident outside India subject
to the conditions that:-
the loan is free of interest
ii) the minimum maturity period of the loan
is 7 years
the amount of loan is received by inward remittance
in free foreign exchange through normal banking
channels or from the NRE/FCNR account of the
lender
the loan is utilised for the borrower’s
personal purposes or for carrying out is normal
business activity other than agricultural/plantation
activity, purchase of immovable property or
shares/debentures/bonds issued by companies
in India or for relending
RBI will give automatic clearance for such loans.
On Non Repatriation Basis
General permission has been given by RBI for
interest free non repatriable loans from NRI
relatives for personal purposes and for business
activities.
Loans from NRIs/PIOs/OCBs
On Non-repatriation Basis
A person resident in India, other than a company
incorporated in India may borrow in rupees on
non-repatriation basis from Non Resident Indian
or a Person of Indian Origin resident outside
India subject to the following conditions:-
the amount is received by inward remittance
or from the NRE/FCNR/NRO/NRNR*/NRSR* account
of the lender
the period of loan shall not exceed three years
the rate of interest shall not exceed 2% over
the bank rate prevailing on the date of availing
loan
where the loan is from NRSR* account, the interest
and repayment shall also be to the NRSR* account;
in other cases interest and repayment shall
be made to the NRO account or NRSR account as
desired by the lender
the amount borrowed is non repatriable
Borrowing in Rupees by Indian companies
A company incorporated in India may borrow in
rupees on repatriation or non repatriation basis
from a Non Resident Indian or a Person of Indian
Origin resident outside India or an Overseas
Corporate Body by way of investment in non convertible
debentures.
Restriction on use of borrowed funds
The borrowed fund shall not be used for chit
funds, Nidhi companies, agricultural or plantation
activities or real estate business or construction
of farm houses or trading in Transferable Development
Rights or for relending.
Commercial Papers
Indian companies can raise deposits from NRIs
subject to the following conditions:-
The issue is in compliance with non banking
companies (Acceptance of Deposits through Commercial
Paper) Directions 1998 issued by the Reserve
Bank of India and any other law, rules, directions
or orders applicable.
Payment is received by inward remittance through
normal banking channels or from funds held in
permissible deposit accounts.
The amount invested shall not be eligible for
repatriation.
The Commercial Paper shall not be transferable.
Rupee Loans to NRIs
RBI has granted general permission to Authorised
Dealers to sanction rupee loans to NRIs against
the security of shares held by them either on
repatriation or non-repatriation basis, subject
to lending norms.
Remittance of Sale Proceeds of Shares
Abroad
NRIs are permitted to raise loans abroad against
the security of shares of Indian companies held
by them on repatriation basis. However, in case
the shares are sold and the amount of sale proceeds
is required to be remitted abroad for repaying
the loan, prior permission of RBI is required.
The aforementioned condition has been waived
off and Authorised Dealers are permitted to
remit the sale proceeds to the overseas bank
who has extended the loan to the NRIs, net of
applicable taxes, if any.
Rupee Loans against Immovable Property
held in India
NRIs are permitted to raise rupee loans on non-repatriable
basis in India against the collateral of their
imnmovable property irrespective of the fact
whether the property is purchased by remittances
from abroad or acquired otherwise.
Other Facilities provided to NRIs/PIOs
Continuance of rupee loan/overdraft to resident
who becomes Non Resident.
Continuance of rupee loan in the event of change
in residential status of the lender.
Overdraft in rupee account maintained with authorised
dealer in India by a bank outside India.
Authorised Dealers (ADs) Permitted to
extend Rupee Loans to NRIs
RBI has granted permission to certain housing
finance companies to extend rupee loans to NRIs
for acquisition of houses in India. These loans
are required to be repaid by NRIs by sending
remittances from abroad. This facility has been
extended to ADs who may be willing to extend
rupee loans to NRIs for acquisition of residential
houses in India subject to the same terms and
conditions as applicable to loans granted to
NRIs by housing finance companies.
Loans by Indian Companies to NRI Staff
Indian companies who desire to grant housing
loans in India to their NRI staff who have been
deputed abroad have been granted general permission
to extend such loans under the staff housing
loan scheme of the concerned company provided
the loans are repaid out of remittances in foreign
exchange from abroad by the employee during
his period of deputation abroad.
Ceiling on Loans by Housing Finance
Institutions
The ceiling on total loan to be advanced and
the percentage of the project cost which can
be funded, and the purposes for which loans
may be given are brought at par with the ceiling
and percentage etc. for residents.
Payment of Interest on Delayed Refunds
RBI has granted general permission to Indian
companies for payment of interest on delayed
refunds of share subscriptions if such payment
of interest is as per SEBI guidelines.
Loans Abroad against Securities Provided
in India
Authorised dealers may grant, through their
overseas branches and correspondents, loans
and overdrafts against the security of fixed
deposits or other assets in India, to Indian
Nationals or Persons of Indian Origin/OCBs established
in business or trade, provided they are satisfied
that such assets represent funds, which had
previously been remitted to India in an approved
manner.
Loans in India against Guarantees by
Non Residents
In case where rupee loan is granted against
guarantee provided by Non Resident and the guarantee
is invoked, the Non Resident guarantor may discharge
the liability by
payment out of rupee balances held in India
or
debit to his FCNR/NRE account
maintained in India.
or
by remitting funds to India
RBI has granted general permission to a resident
being the principal debtor to make payment to a
person resident outside India, who has met the liability
under the guarantee.
The repayment may be made by credit to the account
of the guarantor, provided, the amount remitted/credited
shall not exceed the rupee equivalent of the amount
paid by the guarantor against the invoked guarantee.
Payment to Non Resident Directors
A company in India is authorised to make payment
in rupees to its non-whole time director, who is
a person resident outside India and who is on a
visit to India for company’s work, towards
sitting fees, commissions or remuneration, in accordance
with the company’s Memorandum of Association
or Articles of Association or in terms of any other
agreement entered into by it or any resolution passed
by its General Body/Board of Directors.
Remittance of Current Income by NRIs
Reserve Bank of India has allowed authorised dealers/authorised
banks remittance of current income of Non Resident
Indians (NRIs) and Persons of Indian Origin (PIOs)
by debit to the Non Resident Ordinary Rupee (NRO)
account of the account holder. As a further liberalisation
of facilities available to NRIs/PIOs the Reserve
Bank of India has now allowed repatriation of current
income like rent, dividend, pension, interest, etc.
of NRIs/PIOs who do not maintain an NRO account
in India, based on an appropriate certification
by a Chartered Accountant, certifying that the amount
proposed to be remitted is eligible for remittance
and that applicable taxes have been paid/provided
for.
*Regarding NRNR/NRSR accounts,
please refer to the Chapter on Bank Accounts.
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| Other
Facilities
Available to NRIs |
(1) Import of Gold/Silver
Non Resident Indian Nationals and Persons of Indian
Origin can bring into India gold up to 10 kgs on payment
of customs duty @ of Rs.250 per 10 gms. and silver up
to 100 kg. on payment of customs duty @ Rs. 500 per
Kg. as part of their baggage once in six months. The
gold/silver so brought can be sold to residents against
payment in rupees, by means of crossed cheque in India,
which has to be credited to the NRO account of the importer.
(2) Housing
In various housing projects taken up by the Life Insurance
Corporation of India (LIC) for providing residential
houses to its policy holders, 5 per cent is normally
reserved for allotment to Non Resident Indian policy
holders.
LIC Housing Finance Ltd. has a separate scheme for grant
of individual housing loan to Non Resident Indians viz
Grih Shobha under which loans are granted up to a maximum
of Rs.2.5 million for construction/purchase/extension
of flat. Life Insurance Corporation also accepts repayment
of outstanding balance of housing loans from returning
Indians in Indian rupees.
Housing and Urban Development Corporation (HUDCO) also
has Housing Schemes for NRIs.
(3) Providing Housing Loans in Rupees to Non
Residents
An authorised dealer or a housing finance institution
in India approved by the National Housing Bank may provide
housing loan to NRI/PIO resident outside India for acquisition
of a residential property in India subject to the following
conditions:-
the quantum of loans, margin money and the period of
repayment shall be at par with those applicable to housing
finance provided to a person resident in India;
the loan amount shall not be credit to Non Resident
External (NRE)/Foreign Currency Non Resident (FCNR)/Non
Resident Non-repatriable (NRNR*) account of borrower;
the loan shall be fully secured by equitable mortgage
of the property proposed to be acquired, and if necessary,
also by lien on the borrower’s other assets in
India;
the installment of loan, interest and other charges,
if any, shall be paid by the borrower by remittances
from outside India through normal banking channels or
out of funds in his Non Resident External (NRE)/Foreign
Currency Non Resident (FCNR)/Non Resident Non-repatriable(NRNR*)/Non
Resident Ordinary (NRO)/Non Resident Special Rupee (NRSR*)
account in India, or out of rental income derived from
renting out the property acquired by utilisation of
the loan;
the rate of interest on the loan shall conform to the
directives issued by the Reserve Bank or, as the case
may be, by the National Housing Bank.
(4) Insurance
The New India Assurance Company Ltd., a subsidiary of
the General Insurance Corporation of India has devised
a scheme for personal accidents and expenses following
death (occurring in foreign countries due to accidents
or sickness). This is a special scheme offered to meet
the requirement of Non Resident Indians. The premium
payable is very nominal in comparison to the risk coverage.
The New India Assurance Company Ltd. has entered into
an agreement with the Government of Kerala for the implementation
of the scheme.
The State Bank of Tranvancore along with the United
India Insurance Company Ltd. has introduced "UII
Co. Ltd. – SBT NRI Family Welfare Scheme"
for NRE account holders of the State Bank of Tranvancore.
The scheme provides personal accident covers including
expenses following unfortunate death of the NRI and
medical expenses cover for his/her family (including
the NRI). Medical cover is available for expenses incurred
through hospitalisation in India only.
(5) Education
In private medical colleges/dental colleges, 15% of
seats are reserved for admission to children of NRIs/
PIOs. They are not required to appear for any admission
test. There are about 3000 seats available in such institutions
which means that the availability of seats for children
of NRIs/PIOs in such institutions will be approximately
450.
In other universities and colleges, students including
NRIs are admitted as per Government of India Policy
and they have to pay fees as applicable to Indian students.
(6) Incorporation of a Company
With a view to facilitating the work of Non Resident
Indians intending to set up new industrial projects
in India, the Reserve Bank of India has granted general
permission to (a) Non Resident Indians or Persons of
Indian Origin to subscribe to the Memorandum and Articles
of Association and take up shares of an Indian company
for the purpose of its incorporation and (b) the company
to issue shares to Non Resident Indians/Persons of Indian
Origin subject, inter-alia, to the condition that the
total face value of the shares to be taken up by such
persons should not exceed Rs. 10,000 and the company
is engaged in or is being formed for undertaking industrial
activity.
(7) VISA
Persons of Indian Origin can visit India on multi entry
visa.
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|
Basis of Tax Liability
in India
The tax liability of a person under the Income Tax
Act depends on the residential status in the financial
year (1st April to 31st March) in which the income
accrues or arises to him or is received by him.
For income tax purposes the residential status of
an individual generally depends on his physical
presence or stay in India and not on his nationality
or domicile.
(1) Resident
An individual is said to be a ‘resident’
in India in any financial year if he has been in
India during that year:
for a period of 182 days or more; or
for a period of periods of 60 days or more and has
also been in India within the preceding four years
for a period or periods of 365 days or more;
However, the period of 60 days is increased to 182
days in the case of:
a citizen of India or person of Indian origin who
has been outside India and comes on a visit;
when a citizen of India leaves India for purpose
of employment outside India or as a member of a
crew of an Indian ship.
(2) Resident But not Ordinarily Resident
An individual is said to be ‘not ordinarily
resident’ in any financial year, if:
he has not been resident in India in nine out of
ten financial years preceding that financial year;
or
has not during the seven financial years preceding
that year, been in India for a period of periods
of 730 days or more.
An individual would be "not ordinarily resident"
if he fulfills either of the above conditions.
A Hindu Undivided Family is said to be ‘not
ordinarily resident’ in India if its manager
is ‘not ordinarily resident’ in India.
For calculating the length of the manager’s
stay in India, periods of stay in India of successive
managers of a Hindu Undivided Family have to be
added up.
The status of ‘resident but not ordinarily
resident’ is available only to individuals
and Hindu Undivided Familie
(3) Non Resident
A person who is not resident in India is a ‘Non
Resident’.
Extent of Tax Liability
Based on the residential status of a tax payer and
the place where the income is earned, the income
that is included in the total income is as under:-
Residential
Status |
Nature
of Income |
Resident |
All incomes whether
earned in India or outside India
|
Not Ordinarily Resident |
(a) earned in India, and
(b) all incomes earned outside
India if the same is derived from a business which
is controlled in India or from a profession which
is set up in India.
|
Non Resident |
All incomes earned
in India
|
Double Taxation Avoidance
Since a resident is liable to pay tax in India on his
‘total world income’, it is possible that
he may have to pay tax on his foreign income in that
country also. To avoid such a situation the Government
of India has entered into agreements for avoidance of
‘double taxation’ with different countries.
Special Provisions Applicable to NRIs
With a view to attract investment by Non Resident Indians
(NRIs), certain reliefs, exemptions and incentives have
been provided.
For Income Tax purposes, a Non Resident Indian has been
defined as an individual being a citizen of India or
a person of Indian origin who is not a resident. A person
is considered to be of Indian Origin if he or either
of his parents or his grand parents was born in undivided
India.
20% Tax Scheme
Income from foreign exchange assets (any specified asset
which the assessee has acquired or purchased or subscribed
to in convertible foreign exchange) comprising of shares/debentures/deposits
with Indian companies. Central Government securities
or any other notified assets subscribed to or purchased
in convertible foreign exchange can be charged at a
flat rate of 20%.
No deduction, basic exemptions etc. will be available
under the 20% scheme.
Long Term Capital Gains
Long term capital gains on specified foreign exchange
assets such as Units/Bonds/shares and listed securities
as specified by the Government held by NRIs are taxable
@ 10%.
Minimum holding period for allowing this rate is one
year for shares and other securities listed in stock
exchanges in India and units of specified mutual funds.
For other assets the minimum holding period is 36 months.
If the proceeds are reinvested within six months of
such transfer in any specified securities and new assets
are retained for 3 years, the proceeds are exempted
from payment of Income Tax.
Income from units of UTI are totally exempted from payment
of Income Tax.
Tax Exemptions
Income from following investments made by NRIs out of
convertible foreign exchange is totally exempt from
income tax.
(a) NRE and FCNR(B) Accounts; (b) Units of UTI; (c)
Specified Securities, Bonds, Savings Certificates.
The above exemptions will cease immediately on NRI becoming
resident.
Where the NRI has income from only foreign exchange
assets or income by way of long term capital gains from
foreign exchange assets or both, and tax deductible
at source from such income has been deducted he is not
required to file return of income as otherwise required
under the Income Tax Act.
The special provisions in relation to investment income
from foreign exchange assets (other than shares of an
Indian company) will continue, even after the NRI becomes
resident till transfer or conversions of such assets
into money, if the NRI so wishes.
Advance Rulings NRIs/OCBs desirous
of obtaining advance ruling may make an application
stating the question on which the ruling is sought.
The question which could be of law or fact should relate
to a transaction undertaken or proposed to be undertaken
by the applicant.
Go To Top |
| Facilities
for Returning Indians
|
Maintenance Abroad of
Assets and Bank Accounts of Returning Indians
Non Resident Indians including Persons of Indian Origin
have been exempted from declaring their assets abroad
and/or obtaining permission from the Reserve Bank of
India to hold the same at the time of their return to
India provided such persons have a minimum continuous
stay of one year abroad and have acquired such assets
lawfully.
The above said general exemption applies to all incomes
i.e. interest, dividend earned on foreign exchange assets,
bank deposits, investment in foreign shares or securities
or immovable properties situated out side India or investment
in business out side India. The exemption is also applicable
for acquiring foreign currency continuously through
such assets. Fresh credit to such assets should be out
of foreign currency acquired for which exemption is
also available. There is no restriction for the utilisation
of such balances held abroad for any bona fide payments,
including making further investment in shares, securities
or immovable properties abroad provided the cost of
such investment and or subsequent payment required is
met exclusively out of such balances eligible for such
exemption.
Resident Foreign Currency Accounts (RFC Accounts)
Persons of Indian Nationality/Origin, resident outside
India for not less than one year, on becoming residents
are free to open and maintain such accounts with authorised
dealers.
RFC accounts may be in the form of savings (without
cheque facility), current or term deposits.
The funds may be allowed to be freely utilised by the
account holder, for any bona-fide remittances outside
India through normal banking channels and for withdrawals
in Indian rupees.
On becoming Non Resident, the funds can be transferred
abroad or credited to fresh NRE/FCNR accounts.
Where the stay abroad is less than one year, an application
in form RFC has to be made to the authorised dealer
and referred to the Reserve Bank of India for specific
approvals.
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The Government has announced a scheme for issuance
of Persons of Indian Origin (PIO) Cards for
Persons of Indian Origin living abroad and having
foreign passports. The PIO cards, which would
be extended to Persons of Indian Origin settled
in countries other than Pakistan, Bangladesh,
Sri Lanka, Afghanistan, China, Iran, Nepal and
Bhutan besides introducing a visa free regime,
also confer some special economic, educational,
financial and cultural benefits to the holders
of these Cards.The Persons of Indian Origin
(PIO) Card Scheme has been launched on 31.3.1999.
For this scheme Persons of Indian Origin means
a foreign citizen (not being a citizen of Pakistan,
Bangladesh, Sri Lanka, Afghanistan, China, Iran,
Nepal, Bhutan or other countries as may be specified
by the Central Government from time to time)
if,
he/she, at any time, held an Indian passport,
or
he/she or either of his/her parents
or any of his/her grand parents or great-grand-parents
was born in or permanently resident in India as defined
in the Government of India Act 1935 and other territories
that became part of India thereafter provided neither
was, at any time, a citizen of the countries mentioned
above.
he/she is a spouse of a citizen of India or a Person
of Indian Origin covered under (i) or (ii) above.
Application in the prescribed form along with an application
fee of US $ 1,000/- (US $ 750/- refundable in case of
rejection of the application) has to be made to an Indian
Mission (Embassy/High Commission/Consulate) in the country
where the applicant is ordinarily resident and where
the applicant is already in India on long term visa
(more than one year) to the designated officers in India.
The PIO Card shall be valid for a period of 20 years
subject to the validity of the passport of the applicant.
The following facilities shall be extended to the PIO
Card holders:
Visa free entry to India.
For PIO Card holders the requirement for registration
with Foreigners Regional Registration Office has been
done away with for continuous stay not exceeding 180
days.
All future benefits that would be extended to NRIs would
also be available to the PIO Card holders.
Note: Details of the PIO Card Scheme, application
form, etc. are available on the IIC website –
http://iic.nic.in.
Go To Top |
The Indian Investment Centre
is a service organisation of the Government of India
set up four decades ago for the promotion of foreign
private investment in India. It advises overseas
investors on setting up industrial projects in India
by providing information regarding investment opportunities
in India, the Government’s industrial policy
(including that relating to foreign investment and
technology transfer), licensing procedures, taxation
laws and facilities and incentives available. It
also helps them in finding partners in India.
It is the nodal agency for investment in India by
NRIs and OCBs in which NRI holding is not less than
60 per cent and provides them with hand holding
services.
It is a service agency providing assistance in the
establishment of joint ventures and technical collaborations
in India and abroad and third country ventures between
Indian and foreign entrepreneurs.
It provides guidance and information to Indian entrepreneurs
and assists them in locating suitable foreign firms
for collaboration.
It assists Indian and foreign entrepreneurs in meeting
the procedural requirements of project approvals
and in overcoming bottlenecks, if any, in the process
of implementation of the project.
It has a well-maintained reference library covering
a wide range of subjects like industry, management,
taxation, etc. A cross-section of journals, periodicals
and magazines is available for ready reference.
It brings out publications which provide authentic
information on various aspects of Government policies,
procedures and regulations as also facilities, incentives
and opportunities available to entrepreneurs in
various industrial fields, both in India and abroad.
Some of the important publications are in the fields
of industrial policy, facilities and incentives
for Non Resident Indians and technological development.
It provides factual information on current economic
developments in India through its Monthly News Letter
which is an authentic source of information about
industrial licences and letters of intent issued,
and foreign collaborations approved, by the Government
of India/Reserve Bank of India.
It circulates authentic texts of various Press Notes
issued by the Department of Industrial Policy and
Promotion under Readers’ Subscription Service.
In order to promote investment and technology transfer
from abroad the Indian Investment Centre has signed
Memoranda of Understanding with various organisations.
Availability of Latest Information
Indian Investment Centre has launched its website
on Internet containing latest information relating
to NRI/Foreign Investment, Industrial Policies and
Procedures, Facilities and Incentives given by Central/State
Governments including Questions Asked Frequently
by NRIs. The address of the website is as follow:-
Website: http://iic.nic.in
E-mail: iic@giasdl01.vsnl.net.in |
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