immigration Archives

FEMA Tax Rules for OCI Holders Who Return from the US

October 11, 2022 Manoj Sodhani Comments 0 Comment

Over 85K Indians apply for the visa of the US. This number of visa applicants is increasing year after year.

The taxation rules for Indians living in the USA are applicable as per the residency status. Like goers, there are non-residents of India, including OCI card holders & PIOs who return temporarily or permanently.

This blog defines how taxation rules are applied to them.

NRIs, including OCIs and PIOs in the USA Vs NRIs in India

According to US tax laws, migrants or non-residents are classified as aliens. A migrant who is not a US citizen becomes a “Resident Alien” if he or she attains permanent residency or successfully appears through the substantial presence test.

Here in India, Foreign Exchange Management Act (FEMA) recognises a person resident in India (who stays here for 182 days or more) and a person resident outside India, covering NRIs, OCIs, and PIOs.

Treatment of Person Resident Outside India in India

Those who have obtained a green card in the US are categorised as a Person Resident Outside India.

Since they stay outside India for an uncertain period, their existing Indian bank accounts (covering joint accounts) are turned into Non-Resident (Ordinary) or NRO accounts. This status enables them to remit foreign income into this bank account to receive it in Indian currency, i.e. INR.

But, they won’t allow repatriation to accounts overseas. On the flip side, NRIs have a right to remit up to $1 million overseas every FY from this account.

There is another account called Non-Resident (External) Account or NRE, which NRIs can have for depositing their income to use in India or abroad.

How does the Indian Taxation Act Treat Indian Migrants?

According to Indian Taxation rules, any India shifting to the USA is treated as a Resident & Ordinarily Resident (ROR), a Resident but Not Ordinary Resident (RNOR), and Non-Resident (NR).

The NR is the one who has been here for 182 days or more in India. Or, he should have been here for 365 days in the immediate four preceding years. Or, it can be 60 days more in the relevant financial year.

Once it is confirmed that the person is a Resident, further categorization (which is into ROR or RNOR) takes place under the law.

If one is categorised as ROR, his global income shall be taxable. On the other hand, RNOR and NR can enjoy the benefit of paying tax on only India-sourced income. Out of these two, only NRI can file for an Income tax return if being taxed on India-sourced income.

A person shifted to the US will be treated as a non-resident, supposing that his stay in India does not exceed 182 days. In this case, he shall have to pay tax in India only. It will be on the Indian-sourced income.

If an Indian migrant receives a salary in an Indian bank account while working in the US, no tax will be applicable. It is clearly because he received it in India.

Different Treatment of Status as per Domestic Law

This happens when the person attains citizenship in both countries. Typically, the tax shall be paid to the resident country. But technically, both countries impose a tax on international income.

But, this may arise the problem of double taxation. It can be administered through a “Tie Breaker Rule”. India and US Double Taxation Avoidance Agreement allow it.

If a person returns to India and remains a resident alien, the US rules will be applicable. It won’t matter if he lives here or in the USA because his income will be treated as global income. It is subject to the US income tax.

If the returned person from the US holding its citizenship and have a financial interest in or signatory or any operating authority over multiple financial accounts located outside the USA, plus the aggregate amount in all foreign financial accounts is $10,000+ at any time during the financial year, he has to file FBAR (Report of Foreign Bank and Financial Accounts) in addition to the FATCA (Foreign Account Tax Compliance Act) requirements.

The exchange control requirements in India ensure designating NRO, NRI accounts to those who want to stay here for an uncertain period.

In that case, he will have to file an ITR upon being here in India. In the case of ROR, only the global income is taxable. Such residents shall claim the foreign tax credit for the tax paid in the USA. To get this benefit, the ROR (but not RNOR and NR) has to share detailed reports of foreign bank accounts and assets in the ITR. In case he does not share, he shall be penalized worth INR 10 lakhs under the Black Money & Imposition of Tax Act 2015, which is for undisclosed foreign income & assets.

How to Get Police Clearance Certificate in India

How to Apply for Police Clearance Certificate in India?

May 20, 2020 Manoj Sodhani Comments 1 comment

Police Clearance certificate is to check your background if there is any criminal record or lawsuit associated with the applicant of the passport or visa or employment seeker.

Where to Apply

If you live here in India, obtain it from the Passport Seva Kendra (online) and police station (offline).
If you are abroad, you will be considered as a non-resident of India. Visit Indian embassy to get it from.

Online Process to Apply Police Clearance Certificate in India

This process is a combination of online and offline application to apply for PCC in India. The applicant, first, fills up the digital copy of the PCC form from the given website and then, schedule an appoint to get it verified offline.

Get registered with the Passport Seva Online.
If you’re already registered, log in.
Select “Apply for Police Clearance Certificate”.
If you want to get it online, fill up the form online and upload the supporting documents.

If you want to submit this application offline, you can download this form, fill it up and visit the passport office.

Select the country which you are applying it for like the USA, the UK or France etc..
Now, move to select the purpose to get it for — Citizenship/ Nationality Application, Education/ Research, Employment Visa/ Work Permit, Immigration Purpose other than Citizenship, Long Term Visa Stay, Residence Permit, Tourist Visa and Others.
Fill up your details as an applicant-Name, Surname, Gender, Place of Birth, Date of Birth, Citizenship of India by (Birth/ Naturalisation/ Descent), PAN (if have), Voter ID, Employment Type, Marital Status, Educational Qualification and Aadhaar Card.
Fill up family details –Father Name, Mother Name & Spouse Name (If married).
Fill up Current Address & select the Regional Passport Office to visit later, if intended to submit offline application. Be careful as you cannot re-select the Regional Passport Office.
For online applicants, click “Pay & Schedule Appointment” link given on the “View Saved/ Submitted Application”. This step is mandatory to book an offline appointment. Schedule it by paying the requisite fee online.

For payment option, you have credit card, debit card, internet banking from SBI & associated banks or bank challan.

Offline Process

Upon online application, print through Print Application receipt hyperlink and save Application Reference Number (ARN). This ARN would be used to check the status of the application.
Upload all self attested supporting documents’ scanned copy.
Finally, you can visit the passport office on the date of appointment or within 90 days with the supporting documents.

Documents for PCC

The receipt received from the SMS or text message from the passport office
Original old passport with the self attested photocopy of the first and last two pages of that passport, including ECR and Non-ECR page
Current Address Proof, which can be electricity Bill, Water Bill, telephone Bill, Income Tax Assessment Order, Election Commission Photo ID Card (Voter Id), Proof of Gas Connection,
Certificate of Employment Contract from the Foreign Employer on the letter head,
Spouse & Parents’ Passport Photocopy,
Aadhaar Card and Rent Agreement or Photo Passbook of the Current Bank.

Police Verification Validity

The police verification is mandatory if your current residence is other than what is written in your current valid passport.

Suppose you have got your first passport on 1^st January 2005 and have applied for the PCC in 2011 from the same old address, you won’t require any police verification. If you have an old passport to be renewed with new address, the police verification will take place once again.

In the nutshell, the police authentication will be necessary only if you have changed your address. There is one more case when you need to undergo this verification again. If your passport is 13 years old, you need to get through the procedure for the Police Clearance Certificate.

How long does it take to get the PCC?

However, this certificate is issued on the very day when you get your passport application verified. But if you need to undergo an offline process for employment, it may take 30 days.

FAQs

What is PCC? Who needs it?

It is a certificate issued to the passport holders in case they have applied for residential status, immigration or long-term visa. It verifies the background of the bearer and clearly states the offence type if there is any record found.

NRIs and also those who are going abroad for employment, study and research need it to show up to the immigration authority of foreign countries.

Do tourists also need this certificate?

No, the one who is going abroad for the purpose of touring doesn’t need it.

What type of applicants can apply for PCC?

Who are applying for a private job to show his employer
Who are emigrating from India to another country to comply with Embassy requirements for Visa or an organization for employee recruitment can apply for PCC.

How can you get it?

You can apply for it with the passport application. The form is available on the PSK website to download from.

Besides, every state and place has a website of the police, where you can raise an enquiry to apply for it. This is an online application method, which involves visiting the police website, getting registered, signing in, form filling, uploading supporting documents, online payment and getting receipt.

There is another way that is to visit the nearby police station for getting it physically.

What is the checklist of documents to be enclosed with the PCC application?

Original old passport with self-attested photocopy of its first two and last two pages including ECR/Non-ECR page and page of observation (if any)
Proof of Present Address (in case of change of address)
Self-attested copy of Employment Contract with foreign employer
Copy of Valid visa (in case visa is already obtained) along with Official English translation if the visa is not in English
Copy of Valid registration certificate issued by the Protectorate of Emigrants, Ministry of Overseas Indian Affairs, Govt. of India. (for skilled/semi-skilled workers)
Names of pcensed Recruitment Agents (for skilled/semi-skilled workers)
Sponsorship declaration by the person who is sponsoring the emigration of the PCC applicant

How much do you pay as a fee for PCC?

You can check the updated fee structure on the official website of the police of your state. In Delhi, it’s like this:

For Debit Card Payment

Individual Rs.250 + Rs.1.87 (Bank Charges) = Rs.251.87
Organization Rs. 500/- + Rs.3.75 (Bank Charges) = Rs.503.75

For Credit Card Payment

Individual needs to pay Rs. 250/- + Rs.2.50 (Bank Charges) = Rs.252.50
Organization needs to pay Rs. 500/- + Rs. 5.00 (Bank Charges) = Rs. 505.00

How do you know if your application is confirmed online?

You receive an email and a text message on your registered phone number. Check it.

Besides, you receive a receipt at the end with a reference number, which is used for checking the status of the application later.

Where can you apply for it?

You can apply for it from anywhere, either in India or from foreign, over the internet. You should keep into account that it is issued if you are the resident of that place and have a valid ID proof, which should be minimum six months old.

These proofs can be– Election ID Card, Aadhaar Card, Passport, Driving License, Electricity Bill, Telephone Bill, Bank Passbook & Rent Agreement duly registered in the Hon’ble Court of Law/Registrar/SDM Office (Rent Agreement issued by Notary Public is not applicable) in the name of the applicant at present address

Where should an NRI get PCC from if he has been living in abroad for six plus months?

Some of the foreign immigration authorities require a fresh PCC in every six months. If an NRI is living abroad for more than six months, he should get it from the local police in abroad. Also, he should raise a request here in the place where he comes from in India. In short, you should submit two PCCs.

If you have changed the country and spent six or months there, you have to get it from there also. Let’s say, you have been traveling to UAE from the USA and lived for six months. In this case, you have to get the PCC from UAE, India (for being an NRI) and the USA.

How many days does it take to get delivered?

It hardly takes a fortnight or a month if you have applied with the passport application. You should show the voter id or adhaar card or any other proof of two more witnesses at the time of delivery to the verifying officer.

The US President May Suspend Immigration of Indians

April 28, 2020 Manoj Sodhani Comments 0 Comment

It’s not a new thing for the president of the USA who has recently announced that he may order for temporarily turning off approving immigration permission or its renewal for Indians. The terror of widespread pandemic COVIID-19 is still on due to which its economy is tussling hard. Around 15 million people in that continent have lost their jobs. It’s really a hard time when people are struggling to save life. The NRIs are feeling no earth under their feet. Now, they have one more apprehension to face off, i.e. unemployment.

There are many Indians who are looking for revising their visa. Most of these are the employees of the IT companies and technology professionals. They are under a deep shock. It seems another sequence of “Americans first” regime.

When the US president Trump tweeted in the late night on Monday, the non-residents’ fear for ousting came up front. A New York based immigration lawyer Cyrus D Mehta threw light on it.

Here are the key points that are creating a threat to the people with Indian passport there:

Impact on Indian Nationals

However, it is not clear who is going to be impacted with this decision. The details are yet to come out. But, the surfacing of apprehension is obvious because of the history. Previously, such steps had been taken while keeping aside the rights of the green cards holders. Their travel ban had been executed and there was a massive cut in the workforce from this origin. However, it is really unconstitutional to halt entry in the US.

The Worst Hit Visa Category

The executive order will likely to impact prospective aspirants from this country. Although there is going to have a little impact of the green card holder who are yet to receive confirmation on either a non-immigrant visa or an immigrant visa from the US consulates and embassy.

Stranded Indian Tourists

Those who have travel visa will likely not to be impacted unless they ask to extend their non-immigrant visa to stay there or apply for the change of the status while being in the US.

Legal Challenges

The executive order or EO may likely to face off zillions of challenges in the court. One court or more may issue a preliminary injunction and halt it unless the Apex court of this continent nods for hearing the matter.

Prospective Exemptions

There are hearsays about the exemption of the farm workers, who are there on the H2A visas. Besides, the healthcare workers can also get the opportunity to stay there because of the pandemic spreading widely, taking off lives in millions.

Source: The Economic Times

Types of Attestation in India To Know Before Going Abroad

January 10, 2020 Manoj Sodhani Comments 0 Comment

Any legal paper achieves its value upon getting a signature/stamp on it. Also called certificate attestation, it can be interpreted as the lawful evidence that is credible enough to be trusted by any authority, let’s say PSK (Passport Sewa Kendra) officials or consul.

A stamp or signature of an SDM officer on the marriage certificate, for instance, proves the legitimacy of the copy of the original document. It won’t be accepted or recognized until and unless it ratifies the authenticity by the competent authority.

In short, your birth certificate, marriage or degree certificate or any other one won’t be accepted if it does not have any stamp from the concerned authority or officials. Sometimes, a certificate or document may require a stamp or seal or signature by more than one authority.

Basically, the legalization of documents is classified into these:

Personal documents
Educational documents
Commercial documents

Reasons for Attesting Any Certificate:

Its reasons could be many, as serving a judicial purpose like opening a bank account or obtaining a visa. There may be a commercial proposition, like a business meeting or bringing a business at home, behind it. All in all, one can get a licence of being a genuine degree or certificate holder.

Who has authority to attest?

Well, the purpose defines which authority you are going to concern with for getting a seal of authenticity. Let’s say, you are going to join a multinational company in the USA. To verify your qualification, citizenship and commercial status, it is obligatory to get through attestation service by more than one department.

Mainly, the NRIs or aspiring NRIs require the stamp of legalization through:

Notary attestation– A notary public in the court puts a stamp of verification on various affidavits, degree certificates and other ones in his presence.
SDM attestation-Also called Sub-Divisional Magistrate, the SDM attestation is required in a few rare cases, like obtaining a CENOMAR/ marriage/ birth certificate from the local area. He is not subdued to the state government, as his portfolio is treated as a separate entity.
Chamber of Commerce attestation-As its name suggests, this kind of attestation serves verification of commercial documents, like proof of legitimacy of entrepreneurship and licence.
Home department/mantralaya attestation-It is meant for personal document attestation, like marriage certificate and death certificate.
HRD attestation-Being governed by the central government, the human resource development ministry puts the stamp of originality on the educational certificates, like Mark Sheet, transcript and many other ones.
Ministry of External Affairs (MEA) attestation- This stamp is the last one required for immigration. The MEA puts a sticker upon verifying all necessary documents sent.
Embassy attestation-The consul of the foreign country (where the candidate aspires to go) conducts a face to face round with the candidate before awarding him/her with the embassy attestation on the immigration documents.
(In few cases)Ministry of Foreign Affairs (MOFA) –It is one of the final verifications that are carried out upon passing through the embassy attestation. This is specifically meant to visit Gulf Countries, like UAE.
Apostille attestation-It is no different from the MEA attestation. The applicant can apply for it if he is migrating to the countries in the Hague Convention. Not all countries are part of it.

How long does it take to apostille a document in India?

Generally, it takes a month to get your documents apostille or attested in India. There are a few registered agencies that can be contacted to serve the purpose. But, you should deeply research before contacting any agency.

Fee

About fee, only the registered agency or the concerned authority could avail the appropriate information.

NRIs Get Green Card through Marriage of USA in Three Steps

September 27, 2018 Manoj Sodhani Comments 0 Comment

You can get green card of the USA, if your spouse is its citizen. You will naturally be eligible to file petition for getting this card through marriage.

But, you have to present evidence and concrete facts of your intentions. The consular officers scan your intentions during the visa interview. If they conclude them deceitful, your visa application could be rejected.

The green card through marriage brings along the lingering benefits for non-residents live and work anywhere in the United States. The NRIs attain the status of a permanent resident. But if, they apply for the US citizenship, they gain the leverage to live and work three more years there.

File Petition for Alien Relative via Form I-130:

Before knowing about this form, you should know about the beneficiary and the petitioner/sponsor. Let’s say, you’re a citizen of the US. Now, you want to call your wife from Australia to settle with. In this case, you have to file a petition to sponsor her. Thereby, you’ll be the “sponsor/petitioner”. On the other hand, your wife would be considered the “beneficiary”.

The sponsorship procedure begins by submitting the Form I-130. It is also called “the Petition for Alien Relative”. The sponsor can also sponsor his relatives, mother or father through it. But, he has to file separate petitions for each one.

This form serves the purpose of pulling out a valid proof of the relationship between the beneficiary and the sponsor. In the aforementioned case, the petitioner should present all evidences in support of his marriage.

Which supporting documents should you have?

Birth certificate of the sponsor
Naturalization certificate
Valid US passport photo page
Or, a copy of the petitioner’s green card
Marriage certificate showing the names of both spouses, place and date of the marriage
A joint lease or medical insurance policy/ joint bank account statement/ pictures
Proof of divorce, if was married before

Steps to file Form I-130:

While following Form I-130 instructions, mail it to the USCIS.
If the USCIS requires some more evidences, it can send a Request for Evidence (RFE) within 2-3 months.
Get the receipt within 2 weeks.
The approval may take 7 to 15 months.

If you find it tough to go through this step, talk to the expert NRI consultants, like Services 2NRI.

Apply for green card through marriage:

This step is an ordeal for the beneficiary. The US immigration authority has separate guidelines for the natives and the foreigners in this regard. The beneficiary living outside the United States have to check the visa bulletin. If the bulletin has it together with various annual caps, he/she can fill up the Form I-485. This form shows the eligibility of the beneficiary to get a green card. The immigration authority of that country presently approves within 9 to 11 months.

Which supporting documents should you have?

Proof of nationality, like birth certificate and passport
Proof of lawful entry into the US
Medical examination report by the USCIS-approved doctor
Affidavit of Support/Form I-864 to prove the financial capacity of the sponsor
Fee

The steps of getting approval of the US consul will be similar to the aforementioned steps. Therefore, the processing time will be same as in the first step.

Appear in the green card interview:

This step is a face-to-face interview round. If your sponsor lives in the US, he/she won’t be a part of this round. It would occur in the US embassy in the country where the beneficiary lives. If all go well, the approval on green card through marriage will come within 2 to 3 weeks.

As said in the beginning, the consulate will try to scan your intentions. They want to assess the authenticity of your marriage. Therefore, the questions would be focused on the history of your relationship, daily activity and future plans together.

Guide to Know About DS 160 Form For Visa Application

July 27, 2018 Manoj Sodhani Comments 0 Comment

What is a Non-Immigration Visa?

A person who lives temporarily in the US is a non-immigrant. Plainly speaking, the one might reside in the US for fulfilling the purpose of employment or medical treatment or business or temporary work/study. He would require a non-immigrant visa. It is provided to the non-natives of that country.

You can’t fulfil immigration dreams unless you have a legal permit to live there. It can be procured through a non-immigrant visa, let’s say H1B Visa. But, this is not the only one option you can have to settle there for a few years. Your employer files petition for seeking this visa on your behalf. In the meantime, you undergo several ordeals to get it.

Filling DS 160 Form is also a part of that visa formality. Let’s catch on why it’s essential; how much safe it is and how you can fill this form on the internet.

What is a DS 160 form?

As aforesaid, it’s an electronically available application form. You will have to submit it to the Department of the State. If you look into its layout, it would take a wink to estimate what and why you need to fill it.

Simply telling, it’s a kind of an e-Portfolio wherein you fill the necessary information about yourself. The ultimate motto of seeking this biography is to collect pan information and to send it to the US immigration authority (USCIS). It’s mandatory to fill prior to the visa interview. Once you submit it, the consular officers gain an easy access about you. Thereby, examining whether or not you’re eligible to get the non-immigrant visa becomes a walkover for them.

What are the benefits of DS 160 form?

It provides with an interactive help that doesn’t need any mediator.
In place of Forms DS-156, DS-156K, DS-156V, DS-157, DS-158 and DS-3032, just one form (i.e. DS 160) is to be filled.
As far as privacy is concerned, the consulate officer comes across your information through electronic mode. Thereby, your data remains confidential with him.
If you have filled it flawlessly and accurately, the visa processing won’t take a long. Rather, the officer would gain efficiency in processing your visa application. He would know about you before the screening during an interview. Hence, the delay in the visa processing can be averted.
Since you have the access to this form on the internet, you can easily edit it to serve the accurate details. If you want to edit or revise it the first time, you can do it remotely anytime, as per convenience and requirement.

Where does this form’s information store?

When you fill it online, your data straightly get stored in the robust storage architecture of the Department of State (DoS).

A few years ago, this facility was partially available on the internet. The applicant had to take out its hard copy. Subsequently, he had to visit the consular office in person to submit it. The erstwhile security was based on the barcode scanning. The form consisted of certain code in the form of bars. The officer used to scan it to enter the filled data into the database of the DoS. Thereby, they skip the start to end process of filling and re-filling your information into their database.

Also, you used to go for the interview with the A to Z papers, confirmation sheet and other relevant information in regard of the visa.

How can you skip filling this form?

If you want an employment visa, you will be split into the category of E-2 visa applicants. Then, the DS-160 form is a must. But, if you are a treaty trader or an executive/manager/ crucial employee, your employer will have to fill DS-156E form. When the immigration officer issues DS-161, no other form would be required.

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