FAQs

NRGF issues the Gujarat Card – a distinctive identity connecting every NRG with their motherland. There are special value privileges extended to NRGs having a Gujarat Card. The “Gujarat Card” is issued for a fee of US $5.00 or it’s equivalent in Indian currency.{Jul 20, 2018}

TAN Number. Tax Deduction and Collection Account Number better known as TAN is a 10-digit alphanumeric number. The number is required to be obtained by all persons who are responsible for deducting or collecting the tax.

A permanent account number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated card, by the Indian Income Tax Department, to any “person” who applies for it or to whom the department allots the number without an application.

The Uses of PAN Card are given below:

IT Returns Filing:
All individuals and entities that are eligible for Income tax are expected to file their IT returns. A PAN card is necessary for filing of IT returns.

Opening a bank account:
A PAN card is required in order to open a new bank account, whether it is a savings or a current account All banks, whether public, private or co-operative, require the submission of a PAN card in order to open an account with them.

Buying or selling a motor vehicle:
PAN Card details should be provided when buying or selling a motor vehicle worth more than Rs.5,00,000.

Applying for a credit or debit card:
When applying for either a debit card or a credit card at any bank or financial institution it is mandatory to furnish PAN Card details. The bank will not issue the card if this criteria is not fulfilled.

Purchase of Jewellery:
PAN Card details are required to be furnished when buying any sort of Jewellery that is valued above Rs.5,00,000 at the time of purchase.

Making Investments:
Investing in securities is seen as a good way to build your wealth. PAN Card details are required to be furnished when investing in securities for any transactions amounting to above Rs.50,000. This extends to equities, mutual funds, bonds as well as debentures.

Proof of Identity:
A PAN card is accepted as valid proof of identity when making an application for passport, voter ID card, driving licence, electricity connection and is also considered as proof of age.

Foreign Exchange:
PAN Card details are required to be furnished when required to convert Indian currency into foreign currency at the money exchange bureau, bank, institution where the money is being converted.

Property:
Buying, selling or renting property in India now requires PAN card proof. In the case of buying of property, the PAN details of the buyer as well as the seller have to be listed on the sales deed and any other such documentation for the sale to be complete.

Ans. A person of Indian origin (PIO) is a citizen of any other country but whose ancestors were Indian nationals at least four generations away. A foreign citizen (other than a citizen of Pakistan or Bangladesh) is deemed to be of Indian origin, if,

1. if he, at any time, held an Indian passport, or
2. he or either of his parents or any of his grandparents was a citizen of India by virtue of the Constitution of India or Citizenship Act, 1955 (57 of 1955). [at least four generations away]

KEYNOTE

A spouse (not being a citizen of Pakistan or Bangladesh) of an Indian citizen or of a person of Indian origin is also treated as a person of Indian origin for the above purposes provided the bank accounts are opened or investments in shares/securities in India are made by such persons only jointly with their Non-Resident Indian (NRI) spouses. For investments in immovable properties : A foreign citizen (other than a citizen of Pakistan, Bangladesh, Afghanistan, Bhutan, Sri Lanka or Nepal, is deemed to be of Indian origin if he held an Indian passport at any time or he or his father or paternal grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955(57 of 1955).

Ans.

• Persons of Indian origin (PIO) card scheme for foreigners of Indian Origin having foreign passport was introduced by the Indian Government on 30.03.1999. A total 52, 264 persons, till 2010 have obtained PIO Cards.
• Foreigners of Indian Origin had persons of Indian Origin (PIO) cards valid for his lifetime for visa-free entry to India.
• Persons of Indian Origin (PIO) Card issued to an applicant shall be valid for his lifetime from the date of its issue provided that such applicant has a valid passport.
• No person of Indian Origin (PIO) Cardholder needs to register with the Foreigners Regional Registration Officer/Foreigners Registration Officer (FRRO/FRO) irrespective of the duration of his stay in India.
• The persons of Indian Origin (PIO) Card will be valid only when accompanied with a valid passport.

Ans: –

• Persons of Indian Origin (PIO) Card is granted to foreigners married to an Indian citizen, a person whose parents/grandparents/great-grandparents are or had been of Indian Origin and minors whose parents are Indian citizens or one per cent is an Indian citizen and the other isn’t.
• Persons of Indian Origin (PIO) Card is allowed to a person of Indian origin: Who is a citizen of any country, other than a citizen of Pakistan, Bangladesh, Afghanistan, SriLanka, Bhutan, Nepal and China.

“BENEFITS”

• Persons of Indian Origin (PIO) Cardholder can enter India.
• The holder is exempt from registration with local police authority for any length of stay in India.

“LIMITATION”

• No political rights.
• Cannot undertake activities such as mountaineering, missionary and research work which require specific mission.

“FEES”

• Rs. 15, 000 for adults and
• Rs. 7,500 for minors or
• Equivalent foreign currency, payable along with the application.

“WHERE TO APPLY”

• Indian Mission/Post in the Home country of the foreign national,
• At the Foreign Regional Registration Office, Delhi, Mumbai, Kolkata, Amritsar.
• Secretary (Foreigners), Ministry of Home Affairs.

“AIM”

• The Persons of Indian Origin (PIO) Card is aimed to provide long-term residency rights to people of Indian Origin and to help them participate in economic and educational activities in India.

Ans.

• The constitution of India does not allow holding Indian citizenship and citizenship of a foreign country simultaneously. Based on the recommendation of the High-level committee on Indian Diaspora, the Government of India decided to grant overseas citizenship of India (OCI) commonly known as dual citizenship.
• Persons of Indian Origin (PIOs) of the certain category who migrated from India and acquired citizenship of a foreign country other than Pakistan and Bangladesh are eligible for grant of Overseas Citizenship of India (OCI) as long as their home countries allow dual citizenship in some form or the other under their local laws.

Ans.

• Persons of Indian Origin, who migrated from India after 26th January 1950, and

(I)  Who were citizens of India on or at any time after 26- 01 -1950 or

(II)  Who was eligible to become Indian Citizens on 26th January 1950, or

(III) Belonged to a territory that became part of India after 15th August 1947 and

(IV) Their children and grandchildren,

whose present nationality is such that the country of nationality allows dual citizenship in some form or the other under the local laws, will be eligible to be registered its Overseas Citizenship of India (OCI). Minor children of such persons are also eligible for registration as Overseas Citizenship of India (OCI). However Minor, children, whose both parents are Indian citizen, are not eligible for Overseas Citizenship of India (OCI).

• Overseas Citizenship of India (OCI)is a passage to become Indian Citizen.
• The grant of Overseas Citizenship of India (OCI) is extended to citizens of all countries (which allow dual nationality) other than those who had ever been citizens of Pakistan and Bangladesh. The amended legislation further reduces the period of stay of two years ‘to’ one year ‘ in India for Overseas Citizenship of India (OCI), who is registered for five years, to become eligible for a grant to Indian Citizenship.
• Article 9 of the Constitution of India clearly states that a person shall cease to be a citizen of India if he voluntarily acquires the citizenship of any foreign State. Therefore, one cannot have citizenship of any other country, if he is an Indian citizen. The expression’dual citizenship ‘ is, therefore, a misnomer. However, the technical, term used for the scheme in the Citizenship Act, 1955 (as amended vide Amendment Act, 2005)is’Overseas Citizenship of India (OCI)’
• Persons registered as Overseas Citizenship of India (OCI are not Indian citizens. This is a new category of citizenship created under the statute with certain restricted rights as compared to Indian citizens.

Overseas Citizenship of India (OCIs) holder cannot hold the following positions-

(I) Public employment,

(ii) Election to Constitutional offices like President/ Vice President/ Judges of the Supreme Court or High Courts.

(iii) Members of Parliament or Legislative Assembly/ council or

(iv) Right to vote under-representation of people act,1950.

A person registered as Overseas Citizenship of India (OCI) is entitled to the following benefits:-

o   Grant of multiple entries, multi-purpose lifelong visa to visit India

o   Exemption from registration with FRRO/ FRO for any length of stay in India and

o   Parity with Non-Resident Indians ( NRIs) in economic, financial and educational fields except in matters relating to the acquisition of agricultural/plantation.

(A) Any person of fL111 age and capacity,

(I) Who is a citizen of another country, but was a citizen of India at the time of, or at any time after, the commencement of the Constitution, or

(ii) Who is a citizen of another country, but was eligible to become a citizen of India at the time of the commencement of the Constitution, or

(iii) Who is a citizen of another country but belongs to a territory that because of part of India after the 15th Day ofAugust,1947.

(iv) Who is a child of such a citizen, or

(B) A person, who is a minor child of a person mentioned in clause(a).

PROVIDED that no person, who is or had been a citizen of Pakistan, Bangladesh shall be eligible for registration as an Overseas Citizen of India.

Ans.

Overseas Corporate Bodies (OCBs) are bodies predominantly owned by individuals of Indian nationality or origin resident outside India and include overseas companies, partnership firms,societies and other corporate bodies which are owned,directly or indirectly, to the extent of at least 60% by individuals of Indian nationality or origin resident outside India as also overseas trusts in which at least 60% of the beneficial interest is irrevocably held by such persons.

Such ownership interest should be held by them and not in the capacity as nominees. The various facilities granted to Non-Resident Indians (NRIs)available with certain exceptions to Overseas Corporate Bodies (OCBs) so long as the Ownership/ beneficial interest held in them by Non-resident Indians (NRIs) continue to be at least 60%.

Ans.

Yes, in order to establish that the ownership / beneficial interest in overseas Corporate Bodies (OCBs) held by Non-Resident Indians (NRIs) is not less than 60%, the concerned body / trust is required to furnish a certificate from an overseas auditor/chartered accountant / certified public accountant in form OACwhere the ownership / beneficial interest is directly held by Non-Resident Indians (NRIs) and inform OAC 1 where it is held indirectly by Non-Resident Indians (NRIs) and further that such ownership interest is actually held by them and not in the capacity as nominees.

Ans.

Residents are required to declare such assets to the Reserve Bank within three months from acquiring them and obtain the permission of the Reserve Bank for holding them.

Ans. The approved method of sending remittance into India is through normal banking channels.

Ans. Such remittances will be converted by banks at the market rate of exchange.

Ans. Yes, Exchange House in Gulf countries has been permitted to send remittances into India by means of DDs, MTs and TTs drawn on banks in India.

Ans.

1. The Reserve Bank of India has granted general permission to Non-Resident Indians (NRIs) to bring up to 10 Kg of gold.
2. The Non-Resident Indian (NRI) will have to pay an import duty of 250Per 10 gm. However, the import duty for gold bars serially numbered and weight expressed in metric units and for gold coins is 100 per 10gm.
3. This special rate does not apply to popular Tola bars (116 gm)known as biscuits.

Ans. Yes, Reserve Bank permits Non-Resident Indian (NRI), on the application in form FNC-7, to purchase shares/debentures of existing Indian companies on non-repatriation basis. An undertaking about non-repatriation is to be given in Form NRU.

Ans. Since 2003, Pravasi Bharatiya Divas (Overseas Indian day) sponsored by Ministry of Overseas Indian Affairs, is being celebrated on 9th January each year in India to mark the contribution of Overseas Indian Community in the development of India.

Ans. Foreign Exchange Management Act (FEMA) regulates fund flows and permissions for bank accounts etc. whereas Income Tax Act, 1961 regulated taxation.

Ans. No, Form No. 15G/15H is not applicable in case of Non-Resident Indian (NRI). However, Non-Resident Indian (NRI) can apply to ITO in form-13 for the deduction of tax at a lower rate or a NIL rate.

Ans.

In India:    Based on Residency

In Singapore:  Based on Source

In the USA:    Based on Citizenship

Ans:

• Non-resident individuals and organizations need to have a permanent account number (PAN) if they receive any income and need to file returns in India. Hence, non-residents are advised to obtain a permanent account number (PAN) before receiving any income from India.

1. O. Code: A. O. code pertaining to International Taxation Direction Address: Individual applicants may indicate any address (residential or office-whether Indian or abroad) as the address for communication. A foreign address can be provided as residential and office address by such applicants, if they do not have any Indian address of their own(only for individuals).
2. The Government has made quoting of the permanent account number (PAN) compulsory in specified transactions from 01.11.1998 However, Non-Resident Indians (NRIs) are exempt from these provisions on producing a copy of their Passport.

Ans.

(I)    Everyone except nations of Bhutan, Maldives and Nepal needs a visa to visit India.

(II)    Tourist visas are valid for, six months from the date of issue.

Ans. A Green Card holder (Permanent Resident) is someone who has been granted authorization to live and work (take employment) in the United States on a permanent basis.

Ans. The US H-1B Visa is a non-immigrant visa that allows US companies to employ foreign workers in speciality occupations that require theoretical or technical expertise in specialized fields such as in architecture, engineering, mathematics, science and medicine.

In the United States, the F visas are a type of non-immigrant student visa that allows foreigners to pursue education (academic studies and/or language training programs) in the United States. F-1 students must maintain a full course of study.

Ans. To enter the United States to attend vocational or other recognized nonacademic institution, other than a language training program.

Ans. H-3 visas are for workers going to the United States to receive training in any field (other than medical education or training) where the proposed training is not available in the applicant’s home country. It is not intended for employment in the United States.

Ans. Those who would like to travel to the United States, for a short duration for business-related reasons that do not require actual labour work or receiving payment from the U.S., the source can apply for a business visa.

Ans. Category of visas issued by the united states government to foreign citizens seeking entry for a temporary period for tourism or other non-business purposes.

Ans.

FEMA stipulates that before making a purchase a specified form called theIPI7 needs to be filled with the central office of the RBI along with the title deed or any other certified copy of the document proving that the NRI has executed an agreement to purchase property within the country.

The form has to be filed within 90 days of the purchase of property and has to be accompanied by a bank certificate stating the consideration paid for the purchase.

Permissions are generally granted without undue delays if all the relevant papers are submitted.

Ans. There are no restrictions on the number of residential/commercial properties that can be purchased by an NM/PIO.

Ans.

• An NRI/PIO can mortgage residential/commercial property to

(a) An Authorised dealer/housing finance institutions in India without the approval ofReserve Bank of India.

(b) A party abroad with prior approval of Reserve Bank of India.

• A foreign national of non-resident can mortgage residential/commercial property only with FERA/ FEMA approval of the Reserve Bank.
• A foreign company that this established a branch office or other place of business in India in accordance with FERA/ FEMA regulations has general permission the mortgaged property with an Authorized Dealer in India.

Ans.

• Payment can be made by NRI/PIO out of: –

(a) Funds remitted to India through normal banking channels or

(b) Funds held in NRE/FCNR (B)/NIO account maintained in India.

• No payment can be magic either by travellers’ cheques or by foreign
• No payment can be made outside India.

Ans. If the original payment was made by way of inward remittance or by debit to NRE/FCNR (B) account, the refund, together with interest (net of income-tax) can be credited to the NRE account.

Ans.

• NRIs can sell their property in India to:-

             (a) a person resident in India or

             (b) an NRI or

             (c) A PIO

• PIOs can sell their property in India to: –

            (a) A person resident in India, or

            (b) An NRI, or

            (c) A PIO with the prior approval of RBI

• Foreign nationals of non-Indian origin, including citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran or Bhutan, can sell property in India with prior approval of the RBI to-

            (a) A person resident in India or

            (b) An NRI or

            (c) A PIO.

Ans.

(i) An NRI/PIO may sell agricultural land/plantation property/farm house to a person resident in India, who is a citizen of India.

(ii) A foreign national of non-Indian origin, resident outside India would need prior approval of RBI to sell agricultural land/plantation property/farm house in India.

Ans.

No, NRI Investor has to take delivery of shares purchased and give delivery of shares sold. Short Selling is not permitted.

Ans.

Yes, NRIs are allowed to invest in futures & options segment of the exchange out of Rupee funds held in India on non-repatriation basis, subject to the limits prescribed by SEBI.

Ans.

No. only”a person resident in India” as defined in section 2 (v) of FEMA, 1999 is allowed to participate in the currency derivative segment of the Exchange.

Ans.

Listed Indian companies are allowed to issue shares under the EmployeesStock Option Scheme (ESOPs), to its employees or employees of its joint venture or wholly owned subsidiary abroad who are resident outside India, other than to the citizens of Pakistan. A trading account can be opened for person’s resident outside India only for the sole objective of selling of shares acquired under the ESOP Scheme.

Ans.

FEMA provisions allow Indian companies to issue Rights/Bonus shares to existing non-resident shareholders, subject to adherence to sectoral cap as may be applicable.

Ans.

A person resident in Nepal and Bhutan can open Indian rupee accounts authorised dealer in India.

Ans.

The following accounts are permitted:

1. Foreign diplomatic missions and diplomatic personnel and their family members in India may open rupee deposits with an AD Bank.
2. Diplomatic missions and diplomatic personnel can open special rupee accounts namely Diplomatic Bond Stores Account to facilitate purchases of bonded stocks from firms and companies who have been granted special facilities by customs authorities for import of stores into bond, subject to conditions. The funds in the account may be repatriated outside India without the approval of Reserve Bank.
3. Diplomatic missions, diplomatic personnel and non-diplomatic staff, who are the nationals of the concerned foreign countries and hold official passport of foreign embassies in India can open foreign currency accounts in India. The account may be held in the form of current or term deposit account, and in the case of diplomatic personnel and non-diplomatic staff, may also be held in the form of savings account Such accounts can be credited by way of inward remittances and transfers (which are collected in India as visa fees) from the current account of the diplomatic mission in India. Funds held in such account if converted in rupees shall not be converted back into foreign currency. The funds in the account may be repatriated outside India without the approval of Reserve Bank.

Ans.

An NRO (current/savings) account can be opened by a foreign national of-Indian origin visiting India, with funds remitted from outside India through banking channel or by the sale of foreign exchange brought by him to India. The balance in the NRO account may be paid to the account holder at the time of his departure from India provided the account has been maintained for a period not exceeding six months and the account has not been credited with any local funds, other than interest accrued thereon.

Ans.

Opening of accounts by individuals/entities of Pakistan nationality/ownership and entities of Bangladesh ownership requires prior approval of the Reserve Bank. However, individuals of Bangladesh nationality can open an NRO account subject to the individual (s) holding a valid visa and valid residential permit issued by Foreigner Registration Office (FRO)/Foreigner Regional Registration Office concerned.