A very stringent adherence is observed in India when it comes to laws pertaining to cross border transactions. Especially in a country like India which is one of the biggest exporters of human capital on the face of the earth, that is, our children go foreign and become CEOs and top rank government officials, smooth transactions of money with family/relatives in India are crucial.
Who is a Non-Residential Indian
- A Non-Residential Indian (NRI) is an Indian citizen who lives in India for less than 182 days during the course of the preceding financial year; or
- someone who has moved out of India or lives out of India for job purposes or
- someone who has moved outside India or lives out of India for running a business or having a profession or
- someone who has moved out of India or lives out of India for any other purposes, showing his/ her intent to stay out of India for an indeterminate period of time.
Foreign Currency Holding Limit in India on Residents
Indians residents are allowed to hold foreign currency holdings of up to $2,000 in their resident foreign currency (domestic) account. Further, they can keep it in the form of different currencies, including the USD, Euros, Pounds, Yen, etc.
If you coming back to India, in such case, the cumulative value of the foreign exchange bought in, in the form of currency notes, banknotes and cheques surpasses the amount of USD 10,000 or its equivalent and/or if the value of the foreign currency solely surpasses USD 5,000 or its equivalent, that needs to be declared on the airport in the Currency Declaration Form (CDF) given by the customs authorities.
Documents Required to Receive Remittances
For receiving money from clients/ relatives from abroad, the important document to have is the Foreign Inward Remittance Certificate (FIRC), which generally is easy to get. However, in some cases, due to different receiving and clearing banks, this becomes an Hindrance in meeting the compliance. We have a dedicated team of experts to take care of the FDI reporting with the RBI under FEMA guidelines.
Difference between ITIN and SSN
SSN is for the US citizens and for authorized non-citizens residents (students on F1 visas, Green Card holders, etc). ITIN is for foreign-status residents including undocumented aliens, non-resident aliens, foreign companies, partnerships, and trusts require an ITIN.
SSN is needed to work, collect Social Security benefits and pensions, and are required in order to be eligible for other social services and every American has one as it serves National ID number for the purpose of various financial and medical services. ITIN is required to file for taxes by the non-residents.
It is important to have experienced professionals with you from the outset of making a cross border transaction who can smoothly walk you through the complex yet important nuances of it. USAIndiaCFO is a confluence of CAs and CSs with 10+ years experience in the arena of finance. We have a nationwide as well as an international clientele and we have helped 100+ Indian companies/ startups/ individuals with their international financial issues, from accounting to taxes to complete the business setup.
To know how can we help you with your cross border taxations and make the whole process efficient and less time consuming, give us a ring at 7727887799 (also available on WhatsApp) or drop us an email at firstname.lastname@example.org with all your queries and our team will reach out to you within 2 hours.
We take care of your FEMA compliances, along with providing a range of other services to take full accountability as your virtual CFO.
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