SIMPLY PUT

Q: Why do NRIs have to take PAN and Aadhaar cards? A: For NRIs who have taxable income in India, they should have a PAN card. There are several government-run outlets that help you to get an Aadhaar card. Nobody can charge for issuing an Aadhaar card, it is free of cost.

Q: What is the share of expat remittances from the Gulf? A: According to 2016 figures, India received $62.7 billion inward remittances from all over the globe, of which more than 50 per cent came from the six GCC countries. Remittances from the UAE were the largest, closely followed by the US and Saudi Arabia.

Q: Will NRIs will be asked to pay income tax in the near future? A: No. NRIs will never be asked to pay tax on the income earned outside. They are the backbone of the country and economy.

Q: Are NRI fixed deposits and pension schemes exempted from tax? Or are they liable for taxation? A: There is a need to differentiate between a resident fixed deposit interest which is subjected to taxation while interest on non-resident deposits are not. So, when an NRI opens a fixed deposit account, ensure the remittance is coming from outside India or from an NRE account. If somebody has income from India or wants to give money that cannot be credited to an NRE account, it is to be credited only to an NRO account. Pension schemes are not liable for taxation.

Q: Is there an annual fee for operating NRO accounts? A: There is no annual fee but there is a minimum monthly balance requirement. It is known as average monthly balance, which differs from area to area. If the branch is classified as Metro, the minimum average balance required is ₹5,000; if it is urban, it is ₹3,000 and for rural, it is ₹1,000. You are not required to maintain the minimum amount throughout the month but only the average monthly balance.