quote 'As a Canadian with Indian origin (and now and OCI), do I fall under the category of an NRI? (Please note OCB is corporate body)."unquote

I believe for all the practical purpose you are a NRI. If you live more than 6 months and some other conditions, then you become a resident Indian.

As of now if you are a nri and want to play legal, I don't think you have any advantage in keeping the money in Indian FDS, not only currency loss, you still have to pay tax in both countries.

I guess if I were to pursue a retired life in India (not nessacarily old age ) , I would invest in a couple of properties or aggricultural land as advised by MKannuri ........ Starting a business is an option but hey the OP said 'retired' .

Another excellent article in addition to the earlier one I have posted ... It appears that the 10 yr celing on resale of property has been lifted .

http://www.nriinvestindia.com/nri_tax_on_investments.htm

Pasting below for convenience .

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Few NRI, PIO & OCI Related TAX Faqs:

You a non-resident getting interest on your NRE Account - Is the interest taxable?
NO. The interest you earn is not taxable.


How can you legally repatriate the total proceeds of the sale of your property when you have a �white� and a �non-white� value?
You can only repatriate the money accounted for (white value). You cannot repatriate the money that cannot be accounted for (non-white value).


The capital gain tax is same irrespective of whether I sell my long-term and short-term capital asset. Is this true?
No. This is untrue. The capital gain you would receive by selling your short-term capital asset would be taxed as a normal income, while that against your long-term capital asset, with indexation, would be taxed at 20%.

As a NRI due to acquire citizenship of a foreign land, I am worried about the property I am going to inherit. Is it wrong to keep inherited land as an OCI?
It is not wrong to keep/maintain inherited land as an OCI. This is mainly because you, as an OCI, have added privileges compared to a PIO. However, if you decide to sell your property, you can do so only to a Resident Indian, and not a non-resident (NRI, PIO or OCI).

I have a NRI PAN and all my earnings are from abroad. Do I have to pay tax for the same?
No. Your income is taxable ONLY if your income is generated from within the Indian Territory. Just because you have a PAN does not mean you have to pay tax.

Some of my friends/relatives have told me that I need to declare my savings in my NRE Account and also pay tax for the same. Is this true?
If you are a non-resident for five or more years, you do not have to pay any tax against your NRE Account. Also tax is collected only on interest, not capital.

My office/company is sending me abroad. What happens to my savings back here? Can I continue with the same account? And if yes, then do I have to pay tax?
You need to inform your bank of your NRI status so that your savings bank account can be converted to a NRO Account. You may use this the same way you were before acquiring your NRI status. If you are a shareholder with/in any company, you need to inform them also about your NRI status. However, if you already have a DMAT account, it is not needed. But your Depository participant (DP) HAS to be informed. You will file your tax returns as a NRI, but not if your income is less than the minimum taxable income in India. But, we advise you to pay tax to maintain continuity irrespective of your income. Also, if you had any investments or held any asset prior to your becoming a NRI, you may handle them as you did prior, the only difference being that your original amount will become non-repatriable. We recommend that you open a NRE Account as long as you are a NRI as the interest you would receive in this account is tax-free.

Suppose I buy a property in India from my savings from abroad. Can I sell it anytime or is there a lock in period? What are the repatriation rules?
You can sell you property anytime you want as per the repatriation rules. Since the mid year review of the economic policy by the RBI, the lock in period has been lifted.

What is the rule of repatriation if I take loan from an Indian Bank to buy property in India?
Repatriation is possible IF you pay off the loan instalments through your NRE Account or by transferring funds from abroad.


As a citizen abroad, say from USA can I acquire property in India? If yes, then will I be taxed in both India and my resident country? Also, will I be taxed on my income from abroad upon my arrival in India?

As a PIO, you can acquire property, except agricultural land, in India. If your resident country is one with whom India has signed the DTAA, then you will not be taxed in both the countries. Also, upon your arrival you will be a RNOR, and will remain one for two years, implying that your income from abroad will not be taxed. After this period, your global income will be taxable.


I live out of India and have an account in India for carrying out transactions in the secondary market in India. Do I have to pay tax when I redeem/sell my shares?
Firstly, equity based Mutual Funds (MF) is governed variedly from debt based MF. While the dividend is tax-free in both cases, in case of debt based MF, you have to pay a dividend distribution tax to the exchequer at 14.025%. This is not the case with equity based MF. The latter is also exempt from long-term capital gains tax while the short-term capital gains are taxed at 10.2%.

I plan to return to India. After my return: a) how long will I be considered a non-resident or RNOR; b) for what time period will my income from investments not be taxed; c) what are the tax-free/safe investments in India?
If you have stayed in India for 182 days in the relevant financial year, you will become a Resident Indian. Please note that you cannot become a Resident Indian directly if you are a NRI. If, as a NRI, you are returning to India after nine or more years, you will first become a RNOR and only then will become a Resident Indian. As a RNOR your income is not taxable. Only after you have acquired a Resident Indian status, will your global income be taxable. Public Provident Fund (PPF) is the only safe investment available in India as of today. There are many tax-free investments but they are all subject to market risks.

I lived in Canada before and currently living in Australia for five years now and have a NRE Account with an Indian Bank. If I become a citizen of this country, do I have to close my NRE Account and open a fresh one, or can I operate the same from here?
As a PIO, you can operate your account from anywhere. There is no need to open a fresh account.

As a resident abroad do I have to inform my Bank (in which I have my NRE Account) if I buy commercial property in India?
It is not necessary to inform your bank yet we would recommend that you do the same.

I am working as an executive, on a work permit, in UAE since 2005. I have a normal savings account in India and am wiring my money to my family back to India. Do I need to pay tax on money I am earning here, and if not then how do I show my money on Form 16 so as to make it tax-free? Is there any documentary proof required for showing my source of income? Can I save tax by opening a NRI Account as I am going to be here for another year?
Let us put first things first. Having a normal/conventional savings account in India, when you are a NRI, is ILLEGAL. You HAVE to inform your bank about your NRI status the moment you become one for the bank to re-designate your account as a NRO Account. Capital transfer is NOT liable to tax. If your income is money generated from outside the Indian Territory, the question of paying tax in India does not arise as the I-T Department can only tax you on money received/generated from within the Indian Territory. But your global income is taxable, irrespective of its place of generation. You may open a NRE Account for maintaining tax-free interest.

I have a NRO FD. What is the TDS that will be deducted off it?
TDS is chargeable at 30.6%.

Is it true that the interest amassed in a NRE Savings Deposit is tax-free and repatriable as long as I am a NRI?
Yes this is correct.

I have invested in MF by giving a cheque from my NRE Account. Is my gains taxable?
Please note that the gains are always taxable. Only long-term gains from equity based MF are tax-free.

Is it compulsory to have PAN if I want to invest in Indian MF?
Yes, it is a must to have PAN, along with recently introduced Mutual Fund Identification Number (MIN), if you wish to invest in Indian MF.

Are the gains from trading MF repatriable? Also, can the gains be transferred to my bank account for tax credit?
Yes, gains from MF are repatriable after taxes have been paid, if any. These gains can be accredited to your NRE Account after the relevant taxes have been paid.

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Fido.

There is option to retire in USA ... some place close to a bigger city ..
You get all you want. House cost is less. your life style does not change... and u can always join active work whenevr you like or need.... u r closer to your kids.

Lonelyness has always been a BIG but neglected factor in these calculations.
Do not emphasize only on money aspect.

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trying to find real persons

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Originally posted by bally minhas
There is option to retire in USA ... some place close to a bigger city ..
You get all you want. House cost is less. your life style does not change... and u can always join active work whenevr you like or need.... u r closer to your kids.

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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."

-- Rhett Butler in "Gone with the Wind"

Not totally out of context but something that I really want to know:


What happens to the Canadian pension? Do one still get the Canadian pension if they choose to retire in India? Is there any clause that requires one to work for a number of years in Canada to be eligible to get retirement benefit?
Appreciate some feedback.

Quote:

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Originally posted by pratickm

Quote:

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Originally posted by bally minhas

Someone I know bought a very new condo in an upscale neighbourhood in Phoenix, AZ for $35K USD.

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Sounds interesting..

I am not much into US.

Can a PR buy a property in US..

Condo for 35k ? is this full payment ?. The thing is India we know what to expect?and how to handle ?. Some more information , like weather, food,beach and a cultural mix will be of great help.