March 2019 - S2NRI

Issues, Challenges Faced in NRIs Marriage and Their Solutions

March 31, 2019 Manoj Sodhani Comments 0 Comment

Is it easy to solemnize marriage in foreign?

For natives, it’s no big deal. But, the non-residents often encounter difficulties. The foreign immigration officers make their life hell before it. They undergo a rigorous probing session. It’s a tug of war situation. The consul tries to acknowledge whether or not there is any hidden malicious intention beneath. Fraudsters follow bigamy without informing foreign spouse. The idea of acquiring foreign citizenship tempts them. Consequently, all lives split in matrimony. It leads to litigation subsequently.

However, the Indian government has initiated a concrete step to fight this illicit practice. The Ministry of External Affairs (MEA) has executed the law of marriage registration for NRIs. The non-resident diaspora has to formally get the marriage certificate within 30 days post-wedding. Otherwise, their passport will be revoked. The detention and penalty can further intensify their pain.

The imposition of this law led to impounding of 45 passports of the culprit NRIs. This step is an outcome of rising cases of fraudulent marriages. They encountered issues and challenges in NRI marriages. The MEA got 203 cases in its knowledge between 2012 and 2015.

This situation might not that much severe, if the emigrants’ documents were checked strictly. However, this examining could delay the immigration process. But, it can save many lives. This blog specifically highlights the documentation problems that cause delay in NRI marriages abroad.

Issues and challenges relating to NRI marriages:

No Single Status Certificate: This certificate is also known as the Certificate of No Marriage or bachelorhood certificate. If you’re single, this certificate certifies this fact. It’s noteworthy that a person is said to be ‘single’, if he is unmarried or divorced.

Many European and Asian countries seek this certificate before applying for marriage abroad. The immigrant has to present it to the civil authority, like NSO in Philippines, in the country of his temporary residence.

Solution: How to apply for this certificate?

Every person whosoever wants to tie a knot in the UK, Australia or another country can apply for this certificate to the court.
He/she should visit the court nearby his/her home in India.
Remember that there is no civil authority in India that issues it.
Enclose the affidavit (a sworn document) stating that you’re single. Besides, mention the parents’ name, permanent address and date of birth on it. Also, attach the photocopy of your passport, visa, voter ID, bank passbook or electricity bill as supporting documents to verify the name, address and citizenship.
Notarize it.
Get it attested by the magistrate.
Subsequently, visit the embassy to get it attested from there also.

Insufficient documents, like birth certificate, divorce papers: The application for marriage offshore can be rejected due to insufficient certificates, like a birth certificate or divorce papers. Sometimes, this happens when the place set ablaze and they have burnt there. Or, they might be washed away or washed off by mistake. Or, a thief might have stolen them.

How to get birth certificate?

The registrar or sub-registrar of the Municipal Corporation re-issues the birth certificate. You can:

File an application for the Non-Availability of Birth Certificate (NABC). It is issued, if you want to re-apply for the same.
The registrar will verify your application by seeing the enclosed documents. It can be your school certificate with name, birth date, photograph and address details.
Pay the requisite fee.
It may take 60 to 90 days, as the registrar has to check his record-books.
Afterwards, the certificate is dispatched to the residential address.

Misspelt documents: It’s a major problem. The parents often ignore what spelling the registrar of the Municipal Corporation or the Magistrate is putting on the certificate. Sometimes, we also make the same mistake. It will cause blunder in the future. The passport and visa authority doesn’t accept birth certificate and PAN card/ Bank pass book with different spelling, be it of name or location. So, the person has to go back to the drawing board. He has to re-apply for the certificates with the correct name.

How to apply for the correction in name on your birth/school certificate?

Get an affidavit from the court & notarize it.
Visit a regional newspaper office.
Apply to publish a public notice for changing the name. Mention the correct name in it with reason.
When it is published, visit with the two copies of that newspaper to the court.
Get it attested by a Gazette officer while verifying it with deed changing name form, which is available with the Controller of Publication (Publication Department). Also, show the address proof.
Then, visit the MEA for attestation.
The change of name and certificate attestation is a payable service. The cost may vary in different places.

Attestation/Apostille/Notarization: These are the attestation services, which are mandatory to get through before immigration. The certificate is called valid if it carries the stamp and signature of the competent authority. Commonly, the proof of residence, schooling and birth is attested to turn them into a valid proof. Every state has its own authority to attest various certificates. In India, these authorities hold the competency of attestation of various documents:

Birth Certificate/NABC: Registrar at Municipal Corporation, Sarpanch of Gram Panchayat, Medical Officer
CENOMAR/Bachelorhood Certificate: By a Grade A Magistrate
Police Clearance Certificate: By the MEA (at the time of passport application)
Voter ID: By Grade A Gazette officer
School Certificate/Mark Sheet: By Grade A Gazette officer and the MEA
Passport/ Visa: By Grade A Gazette officer/Notary Public and the MEA
Address proof: By Grade A Gazette officer/Notary Public and the MEA

Tax Liabilities for NRI to Know before Buying Property in India

March 30, 2019 Manoj Sodhani Comments 0 Comment

Are you looking for guidance about tax implications regarding property?

Here it is! You can come across every point that is bouncing at the back of your mind.

Let’s begin with the kind of property that a non-resident can invest into.

Which kind of property can NRI buy?

The NRI can buy any residential property or real estate that is not an agricultural land, plantation property or farm house-this is what the Foreign Exchange Management Act (FEMA) states. It means that the Indian citizen residing in the USA or any other country can purchase the property for self- use, rental income or sole purpose of making investment.

The tax liability differs according to the usage of that property.

How many properties can he buy in India?

You, being an NRI, can buy more than one property in India. There is no restriction over it. But, the point of consideration is the aim underlying the purchase of that fixed asset. That aim can be bought for rent, family’s accommodation and potential capital appreciation.

Tax liabilities or implications for NRI to know before buying a property in India:

The tax liabilities or implications differ in each case-personal use, rental income and capital appreciation. Let’s go through each case sequentially:

If an NRI has one property: If the NRI occupies just one property for self-accommodation, there shall have no tax liability. It is the case of self-occupied property, although he is living abroad on account of his employment.
If he has more than one property: In this case, the resident holds more than one property, which (all) can’t be treated as self-occupied. However, it’s a provision not to levy tax on the residential property. But, it’s a case of holding multiple properties. Therefore, just one property will be assumed for self-accommodation, which is exempted from tax. The law assumes that the rest of the properties are bought for notional rental income, which is ‘Income from House Property’.
Rental income is taxable: The Income Tax law directs imposition of tax, if the resident with an Indian passport rents out his residential property for income. It is titled as ‘income from house property’.

But, the tax authority relieves a bit. It allows a standard deduction of 30 percent towards the repair and maintenance of the property, which includes other deductions like municipality tax, from the rental income.

If the property is bought for investment only: Renting it out reveals the intention of generating extra income. Plainly speaking, the non-residents focus on this investment with the view of making money. It rises on transferring it after selling. The sale of NRI property may attract long-term or short term capital gain.

Do NRIs require permission for investment in real-estate? What documents should they have for selling property in India?

No, they don’t need to take any permission in terms of transactions. But, they should keep into account these points while following the procedure of buying/selling property in India:

Transact through an NRI account of the normal banking channels.
Pay in Indian currency.
Pay through reserve funds of own or through home loans from banks/ financial institution of India.
RBI permits 80 percent (max) of the overall payment through loans from financial institution/banks.
Use inward remittance via NRO/NRE account in India. Alternatively, they can pay through post-dated cheques or Electronic Clearance Service (ECS) from NRO/NRE or FCNR accounts.
Power of Attorney (PoA) can also process the payment.
Besides, they should be aware of the fact that the monetory value (sale consideration) of house property is not less than its stamp duty value. If they ignore this fact, the deficit shall be taxable in the hands of buyers. It generally happens when the sale consideration and the stamp duty value exceeds INR 50,000.
The buyer should ask for Tax Deduction and Collection Account Number (TAN) for withholding of the tax.

How can NRI buyers deduct tax on selling property?

The characterization of the capital gain depends on period of holding that property. If one holds it for 24 months or less, it is a short-term capital asset. Its owner shall pay the tax according to its tax slab for NRIs. On the flip side, the same can be a long-term capital asset if it is held for more than 24 months. The latter case of capital asset attracts tax @ 20 percent plus applicable surcharge and cess.

The non-resident may claim for deduction if he invests the capital gain into a new residential property or government funds, as prescribed in the Income Tax Act, 1961.

Also, he, as a seller, may claim a credit in the country wherein he is temporarily living. The claim of credit shall be with respect to taxes paid in India as per DTAA (Double Tax Avoidance Agreement).

ROI (Return on Investment) according to different real-estates, as researched by ANAROCK:

Residential Property Classes	Approximate ROI (%)
Affordable	8-10
Mid-segment	6-8
Luxury	3-5
Ultra-luxury	2-3

Commercial Property Classes	Expected Rental Income (%)	Estimated Capital Gain (%)
Grade A Office	8-10	10-12
Grade B Office	5-7	6-8

Warehousing Property	Expected Rental Income (%)	Estimated Capital Gain (%)
Warehouse	4-6	5-7

Impact of RERA: RERA (Real Estate Regulatory Act) was coined on March 10, 2016 and became effective from May 1, 2017. It acts as an impetus or regulator to boost formalization of the sector. It enforces formalization through transparency in transactions, the tax reduction and certainty in tax positions.

Benefits of RERA for Industry, Developers, Buyers (NRIs) and Agents:

Industry

Developers

Buyers

Agents

Ø Governance, regulations with transparency

Ø Boost efficiency & robust delivery

Ø Maintain standard

Ø Confidence appreciation

Ø High ROI with PE funding

Ø Common & best practices for all developers

Ø Enhance efficiency

Ø Consolidated supply & work

Ø Promote corporate branding

Ø Organized funding

Ø Protect buyers from defaulters

Ø Timely delivery while using quality products

Ø Balanced agreements/contracts

Ø Transparency on sale

Ø Money security amid transparency

Ø State registration for consolidation

Ø Maintain transparency

Ø Boost efficiency

Ø Less chances of litigation

Tax liability for NRIs on commercial and residential property

It’s obvious that the tax liability on commercial storefront/ office/ property shall be more as compared to the residential property. The Income Tax Act highlights that the self-occupied residential property for NRIs attracts ‘zero’ notional rent.

On the other hand, the commercial co-working space and co-living space generates rental income in hand. Thereby, the imposition of the tax in this scenario of capital gain is obvious.

Tax implications in Budget 2019 for property investment:

The middle-class taxpayers can heave a sigh of relief. They can get one-time tax exemption on the capital gain worth INR 2 crores on selling the property. It is applicable only if the seller invests for the purchase or construction of two residential houses. One of them shall be exempted from notional rent provisions.

How Can NRI Get Voter ID to Take Part in Elections in India?

March 15, 2019 Manoj Sodhani Comments 0 Comment

The biggest event, i.e. Lok Sabha election, of democracy is just around. The Ministry of External Affairs (MEA) has fastened its seatbelt to peg 3+ crore Indians across the globe. Like permanent citizens, the NRIs have geared up because they can cast their prestigious vote this time.

An article on Bloomberg Quint reads- “Why should they (NRIs) be deprived of their right to vote when the Constitution gives every citizen above the age of 18 this right,” asked SK Mendiratta, Former Legal Counsel, the Election Commission (EC).

Before this time, the Representation of the People Act of 1951 was in practice. No NRI could participate in elections in India till the year 2010. Notably, the winter session of parliament in 2018 amended the RP bill. It nodded to include residents of 114 countries with the Indian passport in the Election Commission of India’s voter list. Simply put, the immigrants of this country can take part in the general elections this time.

Eligibility Criteria for Voter ID Card: There are certain norms that the Indian diaspora ought to look into before applying for the NRIs voter ID card:

The person should be at least 18 years old or more.
He/she should possess Indian citizenship.
The person with other country’s citizenship cannot vote.

Online Method to Apply for NRI Voter ID:

Remember that you should go through the process of voter id online registration, first. Sign in with credentials, like password and user id. However, the following steps make application procedure a walkover. But, if the registration doesn’t support for your location, you can try the offline method to apply for the same.

Go to the National Voters Services Portal.
To download Form 6A, click the second option-“Apply online for registration of overseas voters”.
Fill the requisite information, including personal, residential and constituency based, in the next window.
Subsequently, upload all supporting documents, attested by the competent authority of the Indian Mission in the foreign.
Upload your photograph.
Review the declaration.
Input the Captcha code.
Click ‘submit’ button.

Offline Method to Apply for NRI Voter ID:

As aforesaid, you can apply for the NRI voter ID directly with the ERO office. Visit there with all supporting documents.

Fill the form 6A for overseas citizens.
Enclose the photocopy of your passport/visa, residential and birth proofs.
Paste your photograph on the form.
Submit it.

How can NRIs do “voter id search by name”?

Go to https://electoralsearch.in/
Type the name.
Select age, gender, state, district and assembly constituency.
Input the Captcha code.
Hit the ‘Search’ tab.

The list will appear on the screen. You can select yours and download it.

How can NRI cast vote in general elections in India, 2019?

For their convenience, the Election Commission avails two options- Proxy Ballot and e-Ballot.

Proxy Ballot: It’s a privilege to cast the vote on behalf of a non-resident. By filling a proxy voting form, a decision-making body/person delegates his/her power to express his/her franchise (vote) in his/her absence. This provision enables millions of immigrants who left the country. They can use this right now.
e-Ballot: It’s the best alternative to franchise your vote from anywhere in foreign. The registered NRI voters can

Download his/her ballot, which is allotted as per constituency.
Mark a preferred party.
Seize it in an envelope.
Seal it.
Mention the credentials on it.
Put it into another envelope.
Deliver it to the returning officer.

Tips for NRIs to Apply PAN Card in India Online

March 11, 2019 Manoj Sodhani Comments 0 Comment

An NRI can apply for PAN card in India online. Let’s go through every intended question, which the non-residents often think about in its context.

PAN Card

The PAN is an acronym of Permanent Account Number. This number acts as a code to determine transactions made by individuals, families and corporate (Indian and foreign). This 10-character alphanumeric identifier is essential to be issued to all judicial entities registered under the Indian Income Tax Act, 1961.

Is PAN card mandatory for NRIs? Or, why do NRIs require this card?

Yes, the non-residents of India (NRIs) must have this card, if:

They receive taxable income in India.
They want to share trading by a depository or a broker.
They intend to invest in mutual funds.
They are willing to purchase a piece of land or a property.

The government of India doesn’t approve any of the aforementioned requests by the NRIs, if they don’t have this card. They all represent financial transactions, which can be probed by the legal entities in India.

Therefore, the diaspora with Indian passport should apply for this card. Its process is fairly simple.

How NRI Can Apply for Pan Card in India Online?

PAN card application form online: The non-residents are segmented into two entities-one with foreign citizenship and other with retained citizenship of India. Thereby, the applicant should determine his category before applying for this card online.

Subsequently, one can fill an online application form for getting PAN card. These online forms are, again, available specifically according to the aforesaid categories. Therefore, the non-resident should opt for these forms accordingly on the websites of UTIITSL and NSDL:

Form 49A: This online application form is meant for Indian citizens.
Form 49AA: It’s for those who have surrendered their citizenship, but still want to transact with or invest in India.

Fee Structure:

If the applicant mentions the Indian postal address for communication, he would pay INR 107.
If the applicant’s communication address is outside India, he would pay INR 989, which includes additional charges for dispatching it.

Modes of Payment: The applicant can pay through any of these payment modes:

Debit/ Credit Card
Netbanking
Demand Draft, in favour of UTIITSL /NSDL

Documents for NRI’s PAN Card Application:

Besides payment, the applicant should post the supporting documents, either online or through courier services. Help yourself with the list of documents that should be enclosed with the online PAN card application:

Duly attested two photographs pasted in the acknowledgement form
Duly attested copy of passport as a proof of identity
Duly attested address proof, like a copy of passport or, copy of bank statement in the country of residence or, a copy of the NRE bank account statement showcasing two transactions during previous six months.

Process of applying for this card online:

Access the official websites UTIITSL/ NSDL.
Select and fill the application form.
Save when the blanks are completely filled.
Take its print out.
Paste your photographs and attest them as per guidelines.
Scan and upload it again.
Send it to the registered office.
As you submit the form, an acknowledgement slip will pop up. It contains a 15-digit acknowledgement number. You can use it to check the status of your application.
The application should reach the designated address within stipulated period of 15 days.
Once you make the payment & it is realized, the competent authority will dispatch the card finally.
The card will be delivered to the communication address, as the applicant has mentioned.

The applicant should be aware of the fact that it dispatches the card only in selected countries. You can check the list mentioned on the official website.

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