TaxTonic #31: India Calling? Know Your Tax & FEMA Obligations...!

Episode Duration:

90 Minutes

Episode Background:
'TaxTonic', a 'subscriber only' thought leadership series, is Taxsutra's endeavour to consistently deliver top notch technical content to it's readers. The labyrinth of tax rulings on convoluted transactions keeps the world of taxation unpredictable and ever-evolving. This series will feature engrossing presentations, incisive analyses and a deep-dive by the tax experts on burning issues & controversies. So, gear up for a 'tonic' to chisel your tax mind and challenge your wit.

Speakers:

- Mr. Milin Mehta (K C Mehta & Co LLP)
- Mr. Suril Mehta (K C Mehta & Co LLP)

Moderator:
Mr. Sachin Sastakar (Chartered Accountant)

What shall the episode cover?

As India is growing economically with immense stability, the NRIs are returning or planning to return to India. The economic growth is an impetus to nostalgia and deeply rooted socio-cultural ties for the NRIs. There is absolutely nothing in Income Tax Act (ITA) read with relevant provisions of Foreign Exchange Management Act (FEMA) which stops returning Indians to hold their foreign assets and earn income from such foreign assets. However, income computation and disclosures after returning to homeland would lead to interesting and complicated situations. Thus, a proper plan in place can help to rationalise the tax and FEMA obligations, both in India and abroad.

In the next episode of TaxTonic, Taxsutra presents a discussion to understand the nuances under ITA along with relevant provisions of FEMA for NRIs returning to India. The episode broadly covers:

1. Residential status of returning Indians under ITA & FEMA.

2. Impact of change in taxing rights and tax rates.

3. Implications under Black Money Act.

4. Tax planning opportunities.

5. Foreign tax credits.