ABOUT US

Keynote Consultancy comprising of a group of Chartered Accountants headed by Rajesh H Dhruva, is a prominent NRI Consultancy advising Indians abroad in matters related to Foreign Exchange Laws, Taxation, Banking & Mutual Funds Investments.

The Company has created www.nribanks.com, one of its only kind of website displaying weekly updated interest rates of almost all banks in India on various foreign currency and Indian Rupee deposits offered to NRIs and features of FEMA, Taxation and Mutual Fund investment options & femaonline.com, only comprehensive website displaying edited & updated version of Foreign Exchange Management Act, 1999 and Regulations thereunder with special corners of specific information for NRIs, Returnee NRIs and Bankers & nrimutualfunds.com, presenting the very best of equities & incomes of Indian Mutual Funds & Global indices & our MF portfolio services

Company’s professional & advisory services include & pertain to: 
 

·         FEMA and tax-laws re: NRI investment in India including investments in bank deposits; mutual fund bonds; life insurance; shares and securities; immovable properties and undertaking business in India as proprietary/partnership/company.Portfolio Management of investment in Indian Mutual Funds - in Indian Rupees & also Foreign Currency.

·         Portfolio Management of investment in Indian Mutual Funds - in Indian Rupees & also Foreign Currency.

·         Investment in High Yield and Multiple Currency Bank Deposits.

·         Facilitating loans at competitive rates against NRE/FCNR deposits for NRIs and resident relatives.

·         Repartriation of hitherto non-repariable income, sale proceeds of immovable properties and shares & securities, legacies and balances held in NRO accounts.

·         Tax advisory and filing of returns of income and wealth.

·         Returning NRI’s Planning Package maximizing returns and minimizing tax covering Exchange Laws, Tax Laws & Tax Treaties.

Price : Foreign - US$ 5.00 /- £3.00  ( inclusive of air mail charges );

Economy edition : Inland Rs. 100 /- ( including  postage )

¾         1st Edition  : January 2004          ¾   2nd Edition : Sept.  04; reprint Jan. 05        

¾      3rd Edition : December 2005       ¾  4th Edition  : Dec.  06; reprint Jan. 07

¾      5th Edition  : March 2007, reprint March 2008 ¾ 6th Edition  : October 2008

¾         7th Edition :August 2009      ¾ 8th Edition : August 2010

¾       9th Edition : July 2011


Published by Keynote Consultancy Pvt. Ltd.,
220, Amrut, Sardar Nagar Mn. Rd., Rajkot 360 001, India.
Printed by Print Fast Publishers Pvt. Ltd., 13, Manhar Plot, Rajkot 360 002, India. Ph. : 0091 281 2465237

PREFACE

The Reserve Bank of India had brought out a booklet in 1992 in question-answer format, dealing with investment opportunities and regulations for Non-Resident Indians. The booklet was revised in 1994, 1996 and last in 1999 under the Foreign Exchange Regulation Act, 1973.

With passage of time, FERA had lost its shine and its provisions were found out dated stifling inbound & outbound investments eventually resulting in enactment of Foreign Exchange Management Act, 1999 which replaced FERA w.e.f.1st June 2000.  The question-answers not being published under FEMA and in view of its usefulness for NRIs at large, I have thought it proper to provide replies to the said questions Q.1 to Q.151 appropriately under FEMA supplemented by additional questions Q.N1 to Q.N34 covering the subject of taxation for NRIs and returning NRIs, which in my view are important and necessary & certain redundand questions are skipped.

The Income Tax Act, 1961 and Wealth Tax Act, 1957 are proposed to be replaced by Direct Tax Code [DTC] - 2010 with effect from 01/04/2012. For NRIs, interest on NRE & FCNR accounts; Dividend; Gains on sale of of equity shares & equity schemes of mutual funds held for more than 1 year continue to be exempt from tax whereas if held for less than 1 year , tax of 5%, 10% and 15% resp. Gains of other assets  will be taxed at normal rates with indexation applicable for assets held for 1 year or more.

The exemption limit has been raised to Rs. 2 Lakhs & tax rates will be - 10% for income of Rs. 2 to 5 lakhs; 20% for Rs. 5 to10 lakhs and 30% above Rs. 1 mn.

It has been my sincere effort to reply the questions with utmost
simplicity and clarity and hope the contents are found useful by NRIs and returning NRIs too.  The booklet incorporates updated regulations uptill 31st July, 2011.

I owe a lot to my family and office team for their unending support.

CONTENTS

Chapter

Subject

Page

I

II

III

IV

V

VI

VII