I’m an NRI (non resident Indian) residing in Europe and having an NRO (non-resident odd) account in India in my identify. My spouse and I need to purchase euros from the funds I’ve in my NRO account once we go to India. Can my spouse additionally buy euros from the funds in my NRO account?

—Identify withheld on request

Below the trade management regulation, a person might remit outdoors India as much as $1 million per monetary yr from the NRO account topic to fee of relevant taxes in India.

Accordingly, you might buy euros from funds in your NRO account in India because the account is in your identify. Nevertheless, your spouse might not have the ability to buy euros out of your account.

I’m 45 years previous and work with an FMCG main. I shall be shifting to France for a job as a marketing consultant for the subsequent few years. What would be the tax implications of being an abroad marketing consultant? Can I cut back my tax legal responsibility whereas complying with tax laws in India?

—Identify withheld on request

The taxability of your earnings in India will depend upon the next:

a) Residential standing

b) Supply of earnings

c) Place of receipt of earnings

A person qualifying as ‘Resident and Ordinarily Resident (ROR)’ is taxable on worldwide earnings and is required to report his property outdoors India in his Revenue-tax Return.

Nevertheless, if the person qualifies as ‘Non Resident (NR)’ or ‘Resident however Not Ordinarily Resident (NOR)’ is taxable solely on India sourced earnings (i.e. earnings earned or acquired in India).

Residential standing is set primarily based on bodily presence of a person in India throughout a monetary yr (FY) and the previous 10 FYs. Residential standing is dynamic and desires recent dedication every year.

In your case, you’ll need to first decide your residential standing in India. For those who qualify as ROR, your abroad consultancy earnings shall be taxable in India. Nevertheless, for those who qualify as NR / NOR, abroad consultancy earnings is not going to be taxable in India except it’s acquired immediately right into a checking account in India or derived from occupation arrange in India. Advantages could also be claimed underneath the Double Taxation Avoidance Settlement (DTAA) between India and France.

Sonu Iyer is tax companion and folks advisory companies chief, EY India.

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