Latest news with #NRIs
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Business Standard
4 hours ago
- Business
- Business Standard
Think inheritance is tax-free? Here's what NRIs need to watch for in India
When an NRI inherits property or money from a relative in India, the initial reaction may be to treat it as a tax-free windfall. While that's partly true, experts caution that failure to understand the nuances of taxation, ownership documentation, and compliance can lead to legal trouble and financial loss. 'Under Indian law, there is no inheritance tax or estate duty applicable when an NRI inherits property or money in India from a resident Indian,' says Hardeep Sachdeva, senior partner at AZB & Partners, a law firm. 'The transfer is tax-free (from an Indian tax perspective) at the point of inheritance,' he noted. No tax at inheritance, but paperwork is key 'Inheritance of assets, including immovable property, securities, and money, by an Indian taxpayer is not, by itself, a taxable event under the Income-Tax Act, 1961,' explains Kunal Savani, partner at Cyril Amarchand Mangaldas. However, establishing clear ownership is vital. NRIs need a death certificate, the registered will (if any), and a Succession Certificate or Legal Heir Certificate. Mutation of property records with local municipal authorities is also necessary. 'Certain states require probate of the will, especially for immovable property,' adds Sachdeva. Rental income? Taxed at 30 per cent, TDS is mandatory If inherited property is rented out, the rental income is taxable in India, and the tenant must deduct TDS at 30 per cent (plus surcharge and cess) under Section 195, says Savani. 'In one case, a client received rental income for 18 months without deduction, and the tenant was later served a notice for TDS default,' says Sachdeva. This can be avoided with a rent agreement that clearly outlines TDS responsibilities, he said. 'Tenants become assessees-in-default if TDS isn't deposited,' adds Savani. Selling inherited property? Capital gains apply Capital gains arise only when the NRI sells the inherited property. Long-term gains (property held for over 24 months, including the deceased's holding period) are taxed at 12.5 per cent post July 23, 2024. 'The cost of acquisition is either the original cost or Fair Market Value as on April 1, 2001, whichever is higher,' says Ritika Nayyar, partner at Singhania & Co. TDS on sale proceeds is mandatory, and NRIs may apply for a Lower or Nil TDS Certificate. Common mistakes NRIs make NRIs often skip succession paperwork, delay mutation of records, or misreport rental income. Some fail to update their tax residency or don't file Forms 15CA/15CB while repatriating funds. 'These gaps cause long delays and legal disputes,' warns Gaurav K Singh, chairman of Womeki Group, a real estate developer. 'In Delhi NCR, for instance, weak documentation has even led to ownership challenges,' he added. 'Many NRIs overlook basics like updating property titles, settling local taxes, or even obtaining a PAN card for property-related transactions,' says Rakesh Malhotra, founder and chairman, PRIME Developments. 'We've seen cases where failure to report inherited property in Indian tax returns led to avoidable penalties,' Malhotra said. Both experts advise NRIs to engage reliable local professionals or property managers, as poor paperwork and remote oversight often lead to legal delays, tenant misuse, or compliance issues. Bottom line While inheriting property or money in India as an NRI does not trigger tax at the outset, any income from such assets is taxable. Complying with tax, property, and FEMA rules is critical and often overlooked. As Sachdeva notes, 'NRIs must treat inheritance as both a legal and financial responsibility.'
Mint
5 hours ago
- Business
- Mint
Rama Bijapurkar on the flight of Non-Returning Indians (NRIs): Cause for celebration or concern?
Next Story Business News/ Opinion / Views/ Rama Bijapurkar on the flight of Non-Returning Indians (NRIs): Cause for celebration or concern? Rama Bijapurkar Sanjaya Baru's new book—'Secession of the Successful: The Flight out of New India'—cracks open a crucial debate on whether the latest wave of out-migration is doing the country any good. There is a need for a serious debate on what the consequences of the 'secession of the successful' will be and how to mitigate it. Gift this article Before and after 1991, the way we think about certain phenomena has dramatically changed. 'Household consumption' is a phenomenon that went from being whipping boy to valued driver of economic growth and foreign direct investment. Before and after 1991, the way we think about certain phenomena has dramatically changed. 'Household consumption' is a phenomenon that went from being whipping boy to valued driver of economic growth and foreign direct investment. Out-migration by Indians is another. It has gone from the despair of 'brain drain' to the delight of 'diaspora,' and those who migrated have gone from being seen as deserters of the motherland to global ambassadors of brand India. 'Diaspora,' a word that is infused with positive meaning, represents our pride and joy at our visible presence in the world, especially the developed world. The fact that Indians get more H1-B visas than almost everyone else in the world is seen as a badge of honour, a testimonial to how sought-after our talent is. Post the infotech boom, when our educated, tech-savvy youngsters fanned out to live all over the world, the oft-repeated sentiment of Indians was one of relief that the image of India in the eyes of the world has zoomed upwards. Products of top Indian colleges, they proved their mettle, stayed on in the international circuit and have risen to top jobs around the world. One does not need to name the many poster boys and girls of this phenomenon. They are well known and well celebrated in India. The arts and all branches of academia also have had their fair share of Indian exported glitterati and we have also embraced the likes of Rishi Sunak and Kamala Harris as our own—'of Indian origin' being the expanded definition of our diaspora . Against this backdrop comes a new book by the astute thinker and writer Sanjaya Baru, arguing that our celebration needs a reality check and harder questions need to be asked. Provocatively titled Secession of the Successful: The Flight out of New India, it reframes the issues of migration, global citizenship and our image-enhancing, money-remitting diaspora. Baru discusses the four phases of migration that India has had, the present phase being the one that he feels we should worry about the most. The first phase he describes as enforced migration of indentured labour from interior India to scattered remote locations around the world from the mid-19th to the mid-20th century. Amitava Ghosh fans will know this story well. The second wave of out-migration, he says, mimicked the first in many ways, and was of semi-skilled workers to the Gulf and West Asia; both waves being people in search of better living conditions. Although, the popular refrain we have heard from Indian migrants to the Gulf is that they endured worse living conditions in order to make a lot of money so that they could return to a better life back home. The third phase of the 1990s and early 2000s he describes as the large-scale migration of qualified professionals, doctors and engineers, inspiring new phrases like 'knowledge worker' and 'elite migration.' The fourth and most recent wave, which he dates to 2010 onwards, is the migration of the wealthy and high net worth individuals, the 'country's power elites." While the first and second waves of migration were benign or positive for the Indian economy, the third and fourth waves are a drain of brain and wealth; and should ring alarm bells. He analyses the implications for India's progress and asserts that the benefit of soft power gained is not a good enough compensation for what is lost. Why our elites are leaving is an interesting question. Baru says it is taxes and governance. Could it be that they merely have multiple homes around the world, including in India, and shop for the best tax deals? Is this the new world in which home is where the heart is at the moment, as Mira Nair said when an interviewer asked her which of the many countries she lives in does she consider 'home.' As we speak, in the UK too, there is a vigorous discussion on what the Times calls the 'wealth exodus." It says that the 'exodus of wealth from Britain has accelerated since the turn of the year, fuelling fears that the abolition of the non domiciled tax regime will wipe out billions of pounds from the economy." Perhaps it is the nature of the wealthy to choose wealth preservation over home nation love. The UK is mulling over a 'concierge service' to attract companies and their talent to the UK. William Hague, a politician who is currently Chancellor of Oxford University, writes in response that for the wealthy to give up Dubai or Monaco and stay to pay inheritance tax on their worldwide assets would need 'the most extraordinary concierge service the world has ever seen." Perhaps India should institute a concierge service for startups so that our expanding number of unicorns can be registered here and attract foreign capital, instead of being registered abroad and creating wealth outside the country by serving the Indian market. Also read: Why are the rich leaving India? Whatever the argument, Baru's book points to the need for a serious debate on what the consequences of the 'secession of the successful' will be and how we need to mitigate it. The author is a business advisor. Topics You May Be Interested In Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
Indian Express
6 hours ago
- Entertainment
- Indian Express
Ravi Kishan says he went ‘crazy' after seeing success, wife ‘threw' him into Bigg Boss; lost arrogance after father and brothers' deaths: ‘Got whipped by life'
Politician and actor Ravi Kishan has seen massive ups and downs in both his film and political career. The actor recently received a lot of praise for his roles in Kiran Rao's Laapataa Ladies and the web show Maamla Legal Hai. In a recent interaction, Ravi admitted that he became arrogant after finding success in films, and it was his wife, Preeti Shukla, who brought him back on track. Speaking to Raj Shamani about that phase, he said, '18-19 years back, I went a little crazy. I went a little off track. All my films were silver jubilees. These days films work for a week, but at that time good films used to work for 25 weeks and all my films were silver jubilees. So anyone would get mad, I got success after seeing a lot of struggle and then suddenly got so much.' Ravi explained the reason behind the success of his films and shared that since Hindi cinema was focusing on stories about NRIs at the time, his films — rooted in local culture — struck a chord with the masses, leading to immense popularity. 'People were going mad,' he said. Ravi shared that his wife pushed him to participate in Bigg Boss during that time to bring him back on track. He said, 'So my wife threw me into the Bigg Boss house for three months.' Ravi also explained that the death of his father and younger brothers gave him a reality check and made him humble. He said, 'I got a lot of whips by life. My father passed away, my two brothers passed away very young, all my arrogance went away. My arrogance was my dad. He was my pride, and when he left my pride left with him. I became quiet after he left.' When asked about his biggest insecurity, he shared that he fears losing his wife. 'I love my wife, Preeti, and I pray that she never falls ill. I don't want to see her getting old, but I know that she will get old one day. I also know that she'll die one day and will leave me or I will leave her first. I know that nothing will be left,' he said. Ravi Kishan also shared that despite being at the helm of his career, it is his wife and kids who manage him and called them his 'protectors.' He said, 'Whenever there is a controversy, I call my wife and I call my daughter first and they give me a lot of strength. They help me with my decisions, with my career in films and even about what I will wear. They decide how am I going to look and what I will wear when I gain some weight. My four kids and my wife are my protectors.'
The Hindu
8 hours ago
- The Hindu
Indian vs. American morality
I know it's Sunday morning for you but I am sorry to say I am devoting this column to a serious matter — one involving complex questions of morality and jurisprudence. I can't help it — I got so disturbed after watching that video I haven't slept since. Yes, I am talking about that poor Indian woman who was criminally charged for merely walking out of a Target store in the U.S. with some items. I understand she was leaving the shop with items worth $1,300 (₹1,11,994) she hadn't paid for. But does that mean you brand her a thief? There are so many things wrong with the way she was treated, I'm amazed patriotic NRIs still continue to patronise American retail instead of buying all their groceries on visits to India. This tragic miscarriage of justice can be traced to three factors: no clear warning or messaging that the shop was under CCTV surveillance; no option given to the woman to bribe the police officer and settle the matter; and complete mismatch between a state-of-the-art Indian morality and an American system based on a crude assumption of equality before the law, with no allowance made for nuances such as class and caste of the accused. This column is a satirical take on life and society. Privacy lost The first one alone sealed her fate. The entire incident is attributable to a simple cultural difference between India and the U.S. with regard to CCTV cameras. In India, any shop that deploys CCTV cameras warns customers they are under surveillance. You will see a sign saying, 'Smile, you are on camera' or 'Weep, Big Brother is watching you'. So you know the shop expects you to pay for the things you put in your shopping cart. This Target store in Illinois did have cameras, but they were all hidden from view. It also had no signs alerting customers they were under watch. Seriously, is this kind of clandestine surveillance even permitted anymore in civilised society? What about privacy? Anyway, faced with acres of goodies and no cameras, the lady naturally assumed it was okay to leave the shop with some items. If she was indeed required to pay for them, some staffer would surely come and remind her, or at least there would be a security beep at the exit alerting her that the goods were not 'complimentary'. But when she walked out with her cartful of items, there was no beep. So imagine her shock when all of a sudden a guard jumps out of nowhere, calls her a thief, and takes her to the police. Clear case of entrapment One may still condone the guard's over-enthusiasm. But what about the American police? The Indian woman graciously offers to pay for all the merchandise in her cart. But the policewoman would simply not let her pay and close the matter. It was heart-breaking to see the woman repeatedly plead with the police saying, 'The best thing would be for me to pay and finish this.' The cop's stone-hearted reply: 'The best thing would be to not steal in the first place.' Seriously, how can you call it stealing when the so-called thief is literally begging to pay for everything she took? This is where the primitiveness of American morality stands exposed. It sees everything in black and white — as right or wrong, with no shades of grey. Indian morality, evolved over a period of 50,000 years, is a far more sophisticated system. It makes allowances for the complexities and mysteries of human nature. It knows that a person may walk out of a shop with unpaid goods but without any intention to steal — just to see whether they get caught, or purely as a social experiment. This is not accidental. Our sense of right and wrong comes from an ancient truth summed up in a proverb we all learnt as children: 'The crime is not the crime; getting caught is the crime.' This is why withholding information about the presence of CCTV cameras is the real crime in this entire saga, for it duped the poor Indian woman into thinking she wouldn't be caught — a really egregious case of entrapment if you think about it. People often ask me, 'You are bright, talented, and a South Indian. What are you doing in India? Why aren't you settled in the U.S. like Sundar Pichai?' I always tell them, 'America is a backward country. No predictability when it comes to rule of law. Anything can happen to anyone.' People would laugh at my answer. They thought I was joking. Now everyone is realising I was dead serious. The author of this satire, is Social Affairs Editor, The Hindu. sampath.g@
New Indian Express
10 hours ago
- Business
- New Indian Express
Tenali will be a model in P4 implementation: AP Minister Nadendla Manohar
GUNTUR: Tenali will be a model constituency for poverty eradication under the newly launched P4 initiative, Civil Supplies and Consumer Affairs Minister Nadendla Manohar announced on Wednesday. Speaking at the Tenali Vision Action Plan meeting at the Secretariat, Nadendla, who is also the Tenali MLA, revealed that 14,280 'Golden Families' have been identified in the region, with 238 donors pledging to support around 4,000 families. These families will receive assistance in employment, education, healthcare, agriculture, chronic illness support, and bank loans. The P4 programme aims to uplift 50 lakh families from poverty by 2029 as part of Vision 2047, he affirmed. A dedicated website: will soon be launched. The minister also called for participation from NRIs and non-resident Tenali citizens, encouraging them to join as mentors. An orientation event for volunteers will be held soon. 'This action plan is a roadmap to transform Tenali and replicate the model across the State to systematically eliminate poverty,' Nadendla said. Sub-Collector Sanjana Simha, Municipal Commissioner Lakshmipathi Rao, and others were present at the meeting.
