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പുതിയ വായ്പാ അനുമതി; എന്‍.ആര്‍. ഐകളുടെ ഇന്ത്യയിലെ പാരമ്പര്യ സ്വത്ത്‌

Published on 09 October, 2011
പുതിയ വായ്പാ അനുമതി; എന്‍.ആര്‍. ഐകളുടെ ഇന്ത്യയിലെ പാരമ്പര്യ സ്വത്ത്‌

(from GOPIO’s newsletter)

 

NRIs GUIDE TO DEAL WITH INHERITED PROPERTY

Buying a property in India is a decision that most NRIs can take after weighing the pros and cons of various tax and regulatory implications. But getting a property as inheritance is often not a choice, especially for first generation NRIs and PIOs whose parents bequeath to them, property situated in India. In such cases, NRIs must know how to deal with such inheritances.

 

Columnist Deepa Venkartraghavan has written a series of articles on NRIs guide to buying and selling properties in India and has been posted at Times of India website. The latest article is on NRIs Guide to Deal with Inherited Properties.

To read this article, visit the Times of India website at http://timesofindia.indiatimes.com/nri/other-news/NRIs-guide-to-deal-with-inherited-property/articleshow/9983461.cms.

 

NRIs CAN NOW OPEN JOINT ACCOUNTS WITH RESIDENT INDIAN

 

Liberalising the foreign exchange rules, the Reserve Bank has allowed NRIs to hold joint account with Indian residents, a move that would help increase remittances. The central bank has also permit

 

INDIA GOVT. NODS FOR LENDING $200,000 TO NRIs AND PIOs IN RUPEE TERMS

 

The Reserve Bank of India has allowed Indians to lend up to USD 2 lakh in rupee in a fiscal yearto NRIs and PIOs, who are their close relatives, for personal purpose or business activities other than agriculture, real estate or relending business.

"The extant position has been reviewed and it has been decided to permit a resident individual to lend to a Non- Resident Indian (NRI)/Person of Indian Origin (PIO) close relative...," the central bank said in a notification.

It said residents can avail of the new rules, subject to the condition that "the loan amount should be within the overall limit under the Liberalised Remittance Scheme of USD 200,000 per financial year available for a resident individual."

Besides, the loan should be free of interest and with a minimum maturity of one year.

In addition, the loan should be utilized for meeting the borrower's personal requirements or for his own business purposes in India.

"The loan shall not be utilized, either singularly or in association with other person, for any of the activities in which investment by persons resident outside India is prohibited," the notification said.

The prohibited areas include the chit fund business, agricultural or plantation activities, real estate business, or construction of farm houses and trading in Transferable Development Rights (TDRs).

"For the purpose... real estate business shall not include development of townships, construction of residential /commercial premises, roads or bridges," it added.

According to the notification, the loan amount is not allowed to be remitted outside India.

In another notification, the apex bank allowed resident individuals to gift up to USD 200,000 per fiscal in rupees to their NRI close relatives.

The central bank's latest move comes a day after it liberalized the foreign exchange rules and allowed NRIs to hold joint account with Indian residents.

 

GOPIO SEEKING RELIEF ON PENALTIES STIPULATED BY US TAX RULES ON FOREIGN ACCOUNTS

GOPIO Chairman Inder Singh met with US Congressman Howard Berman on September 1, 2011 soliciting his help for relief on penalties under Report of Foreign Bank and Financial Accounts (FBAR) and Offshore Voluntary Disclosure Initiative (OVDI) schemes. Singh informed the congressman that the letters sent to the US President and IRS Commissioner did not receive any positive response from the Commissioner. Copies of both letters were provided to the Congressman Berman.  

 

Inder Singh sought help from the congressman on the following issues:

a.   The current limit to report about someone having a foreign bank account is $10,000. The limit of $10,000 was fixed several years ago, and if cost of living index is applied, that amount could be as high as $50,000. He urged raising the limit to $25,000 as most of the cases will automatically get resolved. 

b.   Waive the penalties if the money has been sent for supporting parents or members of the extended family and is less than $25,000;

c.   Waive the penalties for the inheritance or the money in the foreign banks prior to migrating to the United States;

d.   Exempt the temporary workers, such as H1B and L1 visa holders as they did not know anything about the US Tax laws, their accountants never told them about such laws and their employers, while offering employment never mentioned about compliance of such laws in the offer of employment.

e.   That even if a penalty were to be imposed, it should be on the income rather than the highest balance from 2003 to 2010. Some people have sent money for buying property, for investment or children's education. Once the money has been invested, the balance left is small. IRS should not charge penalty on the highest balance. After all, it was not money laundering but genuine transfer of money.

 

Congressman Berman assured Inder Singh that he would have his staff look into various situations and extend help where possible and practical.

 

For more information, please contact GOPIO International at +1-818-708-3885, Email: GOPIO-Intl@sbcglobal.net

 

 


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