Some of your Questions:

Q. Which are the services provided by ATC Advisors?

It is a professional services firm with expertise in areas like business consulting, legal services, document procurement, property management, taxation, financial & banking services and accounting services.

Q. What is the mode of payment to avail services?

Consideration for services availed or any compensation for out of pocket expenses made by the firm during the course of work, can be made through a bank transfer, debit/ credit cards or digitally at given QR code or by razor pay.

Q.Can our relative or friend can make payment on our behalf?

If a person is with proper identification, then yes, any payment for services availed by such person will be accepted. We are unable to accept payment made by third party online.

Q. At what point of time we are required to make payment?

There is an initial requirement of advance to be paid which is 25% of the entire amount/fees. The next 50% is to be paid after two appointments/ discussions made through any platform i.e., virtually or physically. The balance of 25%can be paid after completion of work.

Q.Whether GST will be charged on all services?

GST will be charged on all services at the prescribed rate.

Q.What is visiting hours of ATC Advisors?

Our office is open Monday to Saturday from 10:00 AM to 6:00 PM. anybody wishing to visit can do so during this time. A virtual meeting can also be fixed if that sits convenient with the client.

Q.Can a person resident in India hold assets outside India?

In terms of sub-section 4, of Section (6) of the Foreign Exchange Management Act, 1999, a person resident in India is free to hold, own, transfer or invest in foreign currency, foreign security or any immovable property situated outside India if such currency, security or property was acquired, held or owned by such person when he was resident outside India or inherited from a person who was resident outside India.
Further, a resident individual can also acquire property and other assets overseas under LRS.

Q.What is the tax treatment for income generated from property selling or renting for NRI?

Income generated by NRI are taxed in the same way as residents. On sale of property it will be capital gains tax which will be at normal rates (i.e. up to 30%) if the asset is held for less than 2 year. Or at a flat 20% if held for more than 2 years( There is non-basic exemption limit for Long term capital gain for NRI’s). Also any person making payment to NRI be it rent or sale proceeds will have to deduct 20% TDS.

Q.Can a Non Resident Indian purchase immovable property in India?

By means of Purchase:
Under the general permission granted by RBI, a Non- Resident Indian/PIO can purchase residential properties in India if the person has a valid proof in India or an OCI card. By means of Gift:
Yes, a Non-Resident Indian/PIO can acquire a residential property by way of a gift from a person in India or an NRI/PIO. By means of Inheritance:
Yes, an NRI/PIO/Foreign national of Indian origin can acquire a residential property by way of inheritance from a person who is a resident of India as per the Provisions of Section 6(5) of the Foreign Exchange Management Act,1999. There is also a provision for NRIs/PIOs to acquire residential properties by way of inheritance from a resident outside India by following the guidelines set by the RBI, provided that the bequeathed had acquired such property in accordance with the foreign exchange law at the time of purchase.

Q.Can a resident continue to hold immovable property outside India which was acquired by him when he was a non-resident?

According to section 6(4) of the FEMA, a person resident in India can hold, own, transfer or invest in any immovable property situated outside India if such property was acquired, held or owned by him/her when he/she was resident outside India or inherited from a person resident outside India.

Q.Can a resident individual send remittances and purchase property outside India?

A resident individual can send remittances under the Liberalised Remittance Scheme (LRS) for purchasing immovable property outside India. In case members of a family pool their remittances to purchase a property, then the said property should be in the name of all the members who make the remittances.

Q.How can immovable property be acquired outside India by a resident?

1. Under section 6(4) of FEMA.
2. As an inheritance/ gift from a person (i) referred to in sec 6(4) of FEMA; or (ii) who has acquired it prior to July 8, 1947 (iii) who has acquired such property in accordance with the foreign exchange provisions in force at the time of such acquisition.
3. Purchase with balances in the Resident Foreign Currency (RFC) account of the resident.
4. Purchased with remittances made under the Liberalised Remittance Scheme (LRS).
5. Jointly with a relative provided there are no outflow of funds from India.
6. By an Indian company having overseas offices, for housing its business or for residence of staff.

Q.What are the accepted modes of payment for property acquired in India by a Non- resident Indian?

Payment for immovable property has to be received in India through banking channels and is subject to payment of all taxes and other duties/levies in India. The payment can also be made out of funds held in NRE/FCNR(B)/NRO accounts of the NRIs/OCIs. Payments should not be made through travellers’ cheque and foreign currency notes.

Q.Can a spouse of a NRI/OCI who is not a NRI/OCI acquire property in India?

(i) A person resident outside India, not being a NRI/OCI, who is a spouse of a NRI/OCI may acquire one immovable property (other than agricultural land/farm house/plantation property), jointly with his/her NRI/OCI spouse.
(ii) consideration for transfer made under this para should be out of funds received in India through banking channels by way of inward remittance from any place outside India or by debit to non-resident account of the person concerned maintained in accordance with the Act or the rules framed thereunder. Payments cannot be made either by traveller’s cheque or by foreign currency notes or by other mode except those specifically mentioned in this para.
(iii) The marriage should have been registered and subsisted for a continuous period of not less than two years immediately preceding the acquisition of such property.
(iv) The non-resident spouse should not otherwise be prohibited from such acquisition.

Q.Can a non-resident repatriate the sale proceeds of immovable property in India?

(1) A person who has acquired the property u/s 6(5) of FEMA or his successor cannot repatriate the sale proceeds of such property without RBI approval.
(2) Repatriation up to USD 1 million per financial year is allowed, along with other assets under (Foreign Exchange Management (Remittance of Assets) Regulations, 2016) for NRIs/PIOs and a foreign citizen (except Nepal/Bhutan/PIO) who has (i) inherited from a person referred to in section 6(5) of FEMA, or (ii) retired from employment in India or (iii) is a non-resident widow/widower and has inherited assets from her/his deceased spose who was an Indian national resident in India.
(3) NRIs/PIOs can remit the sale proceeds of immovable property (other than agricultural land/farm house/plantation property) in India subject to the following conditions:
(a) The immovable property was acquired in accordance with the provisions of the foreign exchange law in force at the time of acquisition of the provisions of Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations,2018;
(b) The amount for acquisition of the property was paid in foreign exchange received through banking channels or out of the funds held in foreign currency non-resident account or out of the funds held in non-resident external account;
( c) In the case of residential property, the repatriation of sale proceeds is restricted to not more than two such properties.

Q.What is rate of TDS under section 195 on sale of property for NRI?

For an Indian NRI TDS rate u/s 195 is 22.88% i.e. 20 % TDS plus 10% Surcharge & 4% Education Cess, of sale or agreement value. While 1% TDS rate is only applicable for resident property sellers and not in case seller is NRI or OCI card holder. This rate is same as capital gain tax rate for NRI tax payers.

Q.What is the residential status of a student going abroad for education?

(i) When one leaves India for further studies, depending upon the number of days he spends in India in the year of departure and thereafter, his residential status changes.
(ii) If the student goes abroad for education and resides there for more than 182 days in the preceding financial year (April to March), he shall be considered as a Non-resident under FEMA from the following financial year till he returns to India.

Q.What is the meaning of investment on Repatriation and Non-Repatriation basis?

(i) Investment on Repatriation basis means that the sale proceeds, profits and dividends/interest of the investment made by the NRI, net of taxes, are eligible to be freely remitted outside India.
(ii) Investment on Non – Repatriation basis means that the investment made by the NRI cannot be freely remitted outside India. The investment proceeds have to be accumulated in the NRO Account. Only the current income in the form of dividend or interest, net of taxes, can be remitted.

Q.What are the various schemes available for making remittances from India to a foreign country?

(i) NRI can make investment in India both on repatriation and non- repatriation basis. Certain investments which are made on repatriation basis and any income earned on it, net of taxes can be freely remitted outside India.
(ii) Certain investments are made on non-repatriation basis which cannot be freely remitted outside India, except the income generated on it. However, RBI has introduced the USD one million dollar scheme under which proceeds of non-reparable Investment can be remitted outside India per financial year.
Note: The scheme is governed under certain terms and conditions and also are subject to reporting compliance.

Q.Can NRI borrow money as rupee loan from his resident relatives if he becomes person resident outside India?

(i) Yes, He can borrow money in rupees from his resident relatives ( as defined under Companies Act,2013) within the limit of USD 2,50,000 per resident relative per financial year.
(ii) Such borrowed funds have to be deposited into the NRO account of such NRI and can be used only for his personal purposes and own permitted business and not for relending or investments.
(iii) Further, the proceeds of the said loan cannot be remitted outside India.

Q.Can NRI receive any gifts from his resident relatives in Indian Rupees or even in foreign currency after he becomes person resident outside India?

Yes, A resident individual can gift his NRI relatives in Indian rupees as well as foreign currency under Liberalized Remittance Scheme (LRS) within the limit of USD 2,50,000 per financial year.
Note: For the purpose of Gifts, definition of the term relative under Companies Act, 2013 is to be applied. Also, one has to keep in mind the gift tax laws of the foreign country in which such NRI resides.

Q.Can NRI continues his investment in PPF account and National Savings certificate (NSC) after he become a person resident outside India?

(i) As per the latest circular dated 3rd October, 2017, if a resident who holds PPF account subsequently becomes a non-resident, the said PPF account shall be deemed to be closed with effect from the day he becomes a non-resident and interest shall be paid at the rate applicable to the Post Office Savings Account, from such day of conversion up to the last day of the preceding month in which it is actually encashed.
(ii) Prior to this amendment, a resident holding PPF account subsequently became a non-resident, then he could continue to subscribe to the fund till its maturity on a non-repatriation basis.
(iii) Hence, post the circular, any NRI holding PPF Account needs to close the said PPF Account or the same would be deemed to have been closed. (iv) Further, if a resident has purchased NSC and subsequently becomes a non-resident during the period of maturity of the certificate, it shall be encashed or deemed to be encashed on the day such person becomes a Non-resident and interest provisions as mentioned above shall apply.

Q.Can NRI continue as a partner in the Indian partnership Firm/LLP?

(i) Yes. He can continue to be a partner in the partnership firm / LLP subject to terms and conditions applicable.
(ii) Investment made by NRI in Indian Partnership firm / LLP can be made only on non-repatriation basis.
(iii) Where a NRI continues to be partner in partnership firm/LLP, then such partnership firms/LLPs cannot make any investments in Nidhi Company or a company engaged in agricultural/ plantation activities or Real estate business or construction of farm houses or deal in Transfer of Development Rights.

Q.After NRI returns to India, can he still continue to hold bank account, investments and property acquired by him in the foreign country?

Yes. Under FEMA any person who was once a Non Resident, can continue to hold his foreign bank accounts, investments and properties abroad which he had acquired when he was a Non- Resident even after he becomes a person resident in India.

Q.What are the penal consequences for non-compliance of any provisions under FEMA?

Any person contravening FEMA provisions may be liable to a penalty as under :
(a) Penalty up to thrice the sum involved in such contravention where such amount is quantifiable; or
(b)Penalty up to Two lakh rupees where the amount is not quantifiable. (c) If such contravention is a continuing one, further penalty which may extend to five thousand rupees for every day during which the contravention continues may also be levied.

Q.Whether FDI is allowed in entities viz Partnership Firms/ Proprietorship Firms?

Only a Non- Resident Indian (NRI) or a Person of Indian Origin (PIO) resident outside India can invest in the capital of a firm or a proprietary concern in India on non-repatriation basis subject to the following conditions:
(i) Amount invested by inward remittance or out of NRE/FCNR(B)/NRO account maintained with Authorized Dealers/authorized banks.
(ii) The firm or proprietary concern is not engaged in any agricultural/Plantation or real estate business or print media sector.
(iii) Amount invested shall not be eligible for repatriation outside India.

Q.Can Investments be also made on repatriation basis?

Investments with repatriation option:
NRI/PIO may seek prior permission of Reserve Bank for investment in sole proprietorship concerns/ partnership firms with repatriation option. The application will be decided in consultation with the Government of India.

Q.Can a Foreign National other than NRI/PIO also invest in Partnership Firms/Prop. Firms?

Investment by non-residents other than NRI/PIO:
A person resident outside India other than NRIs/PIOs may make an application and seek prior approval of Reserve Bank for making investment in the capital of a Firm/ Proprietorship concern or any association of persons in India. The application will be decided in consultation with the Government of India.
Restrictions: An NRI or PIO is not allowed to invest in a firm or proprietorship concern engaged in any agricultural / plantation activity or real estate business or print media.