With globalisation and free trade policies gaining momentum around the world, India has emerged as a significant role player thanks to its actions. This has led to ongoing development and rising economic complexity, which has in turn prompted legislators to pass swift changes in tax laws. For our clients, we offer thorough, well-considered counsel. Our skilled staff will provide you advise on how to deal with and manoeuvre through those scenarios and provide an accurate and thorough insight to suit your needs, whether you’re considering restructuring your company or adjusting to the constant changes in Direct Taxation legislation.
We offer our clients advice on significant recurring changes in taxes regimes and their commercial implications. We provide efficient procedures to enhance regular reporting, lowering costs, attribution errors, and guaranteeing that your taxes are handled properly.
Legislators alter tax rules quickly as a result of the economic environment’s constant development and growing complexity. By analysing the changes, we are able to give our clients thorough advise that has been carefully considered. The goal of our professionals to “BE TRUSTED ADVISORS” is as crucial as ever. Whether you’re considering a business reorganisation or adjusting to the constant changes in Direct Taxation laws, our qualified staff will show you how to face and overcome these challenges and will provide you a precise and in-depth understanding of how to suit your company’s demands.
We provide our clients with advice on significant recurring changes in taxes regimes and their impact on company. In addition, our multi-disciplined tax team supports your overall tax planning and corporate Direct Taxation counselling needs.
CORPORATE TAX ADVISORY
1) Creating an entry plan that considers tax and regulatory considerations
2) Tax planning for company reorganisations, mergers, demergers, slump sales, divestitures, and other significant corporate actions.
3) Techniques for tax-efficient repatriation of profits and dividends.
4) Legal assessment of direct tax laws and practises.
5) Giving guidance on the need to withhold taxes from payments.
6) Advice on the corrective actions necessary in accordance with various Direct Tax regulations.
7) Guidance on how to structure compensation packages for employees and on cost-saving options to minimise taxes paid by workers and maximise their take-home pay, as well as to make sure the full amount of compensation is recognised by the employer as a business expense.
GLOBAL TAX AND BUSINESS ADVISORY
JJJ manages your corporate tax burden by identifying possibilities, controlling global tax risks, and fulfilling cross-border reporting requirements thanks to partnerships with international tax experts. We provide the following services:
1) Creating structures to reduce tax obligations for foreign companies and non-resident entities investing in India and intending to conduct business there.
2) Structuring payments in accordance with the Income Tax Act and a double taxation avoidance agreement in order to reduce tax burden.
3) We offer our clients advice on creating inbound and outbound investment structures that are tax efficient both throughout the investment period and after exit.
Our team consists of experts in accounting, taxation, and law. This group of experts gives us the technical and creative ability to handle any transfer price issues. We provide the following services:-
1) Transfer pricing planning
3) Transfer Pricing Study Report
4) Litigation Support
5) Advice on all pertinent issues.
TAX COMPLIANCE SERVICES
The following are the tax compliance and reporting services we provide:
1) Tax audits in accordance with Indian income tax laws
2) Preparation of corporate tax returns and its review to make sure that they comply with the Income Tax Act of 1961.
3) Payment of Employment Tax
4) Compiling TDS from customer data on a monthly basis, paying taxes on time, submitting quarterly E-TDS forms, and giving vendors an annual certificate, among other things.
5) Assistance from revenue authorities during a tax audit
6) Getting a PAN or TAN
FOREIGN REMITTANCE CERTIFICATION AND LOWER TDS CERTFICATE
1) Opinion on Applicability of Withholding Tax on Different Foreign Remittances in accordance with Indian Income Tax Act/DTAA is one of the services generally offered under this category.
2) Publishing Foreign Remittance Certificates in accordance with the different sections of the Income Tax Act of 1961.
3) We assist with obtaining certificates from the income tax office for lesser or no source deductions (TDS).
4) Representations in front of international Direct Taxation authorities about issues related to withholding tax on international remittances.
INDIVIDUAL TAX PLANNING
1) Tax Implication on Each Income-Involved Transaction;
2) Personal Tax Compliances – Tax Return Compilation and Filing;
3) Quarterly tax deposits, quarterly advance tax computations, self-assessment tax deposits, regular assessment tax deposits etc; and
4) Responding to different Income Tax Notices, having incorrectly raised demands withdrawn, and receiving any refunds that may be due.
- Advisory services on the Indian tax legislation
- Calculation of taxes payable by expats in line with the Indian legislation
- Making an Expat’s tax return and submitting it to the Indian Tax Authorities.
- Clarification of Indian law on the acquisition of a visa and a work permit.
- Advisory and compliance services regarding social security contributions for foreigners in accordance with Indian social security law.
- Designing compensation and benefits for India.
REPATRIATION OF FUNDS
- Assets/Funds held when they left India;
- Assets/Funds inherited;
- Assets/Funds resulting from foreign transfers made to India for investment purposes or other purposes; or
- iv) Income derived from such Assets/Funds maintained in India.
Remittances of income and assets have been significantly liberalised by the Indian government throughout time.
- What and how much NRIs/PIOs are permitted to Repatriate from India?
|Sr. No |
|What can be repatriated |
|Limit for repatriation |
|i)||Current Income: |
Income in the form of a salary, pension, dividend, interest payment, rent, or other distribution derived from a deposit, investment, or property, as well as the earnings from a sole proprietorship or partnership. (See also Note 2)
|ii)||Repatriation of Sale Proceeds of Assets (other than Immovable Property): |
Balance in NRO account, profits from the sale of assets or property obtained in India through inheritance, bequest, or under a deed of settlement by parents or a designated relative (Also refer Note 4)
|One million dollars annually|
|iii)||Repatriation of Sale Proceeds of Immovable Property (other than agricultural land/farm house/plantation property) (Also refer Note 5): |
A) Foreign-exchange-purchased property:
1. The amount paid in foreign inward remittances or from money in Foreign Currency Non-Resident Accounts (FCNR a/c) or NRE a/cs for the purchase of real estate.
2. The purchase of residential property using loan proceeds obtained in compliance with the Foreign Exchange Management Act of 1999 and repayment of such loan using foreign remittances or monies in NRE or FCNR accounts
3. If sale proceeds are more than (1) or (2) above.
B) Property acquired otherwise than in Forex:
Equivalent to investing in forex
Equivalent to repayment of loan in Forex
Excess amount upto USD 1 million per Financial Year
USD 1 million per Financial Year
- All repatriations must be paid for with the appropriate Indian taxes.
- Current income received in any year may be repatriated in that year or cumulatively in any succeeding years.
- There is no restriction on the unrestricted repatriation of NRE monies.
- The NRO account’s balance should be the result of the account holder’s legal Indian debts, not a loan from another party or a transfer from another NRO account.
- The repatriation of sale earnings for residential property is limited to two such properties.
- Special provisions for Foreign Nationals (other than PIO or citizen of Nepal/Bhutan)
A foreign national may be permitted to remit assets if:
- He or she has left their position in India, or
- He or she inherited the asset from someone who was a resident of India at the time of acquisition or had inherited it from someone who was a resident of India.
- The dead spouse was an Indian national who resided in India, and the widow or widower is a non-resident who has inherited assets from that person.
The transfer should not total more than $1 million per fiscal year. However, the sale proceeds of assets held on a repatriation basis are not included in this cap. If the payment is made in multiple instalments, each instalment must be sent through the same Authorized Dealer (AD) Bank.
- The remittance is in relation to funds held in a bank account by a foreign student who has finished their studies, provided that such funds represent the proceeds of remittances received from abroad through regular banking channels, rupee proceeds of foreign exchange brought by such a person and sold to an AD Bank, or out of stipends/scholarships received from the Government of India or any other Indian organisation.
- Documentary Evidence:
To send money to an NRE account or an international bank account, the sender must present the following documentation to AD Bank:
- Form 15CA: Remitter’s commitment that must be physically or digitally signed and submitted online via the Tax Department website.
- Form 15CB: A Chartered Accountant must certify on this form that all appropriate taxes have been paid on the remittances.
- Form A2/Outward Remittance Form in the event that money is transferred from an NRO account to a bank account abroad.
- In the event that money is transferred from an NRO account to an NRE account, FEMA Declaration/Transfer Request.
- Additional paperwork as requested by AD Bank
- Special approval from RBI:
If a person may suffer hardship if remittance from India is not made to that person, the RBI may authorise repatriation beyond the restrictions mentioned. In light of this, RBI may, at their discretion, issue approval for medical purposes, educational purposes, property purchases, or similar criteria.
- TYPICAL PROBLEMS
- i) The annual maximum of USD $1 million cannot be used if it is not used in the first year.
ii)The RBI recently issued instructions stating that presents received from residents may only be credited to an NRO account of the NRI up to a total of USD 250,000, so indirectly restricting the repatriation of such gifts by NRI up to this amount.
iii) In a specific Financial Year, only one AD Bank may process transfers from NRO accounts to NRE accounts or foreign bank accounts.