Finance Minister Nirmala Sitharaman tabled the Union Budget for 2021-22 on February 01 emphasizing six pillars on which the budget rests - health and well-being, physical, financial capital, and infrastructure, inclusive development for aspirational India, reinvigorating human capital, innovation, and research and development, minimum government, and maximum governance.
The FM had earlier promised a "never before" budget not seen in a hundred years to ward off the economic devastation caused by the Coronavirus pandemic, which rendered millions out of jobs, shuttered small businesses, and dried up the spending power, bringing the economy to its knees.
The Finance Minister also announced that the NRIs will be spared from double taxation. "New rules to be notified", she said. Sitharaman also announced that Tax audit limit has been increased from Rs 5 crore to Rs 10 crore.
"When Non-Resident Indians return to India, they have issues with respect to their accrued incomes in their foreign retirement accounts. This is usually due to a mismatch in taxation periods. They also face difficulties in getting credit for Indian taxes in foreign jurisdictions. I propose to notify rules for removing their hardship of double taxation," Finance Minister Nirmala Sitharaman announced in the Parliament today.
In order to address the mismatch in the taxation of income from the notified overseas retirement fund, the government has proposed a new section 89A to the Income-tax Act, 1961. After the amendment, the income of such a 'specified person' from the 'specified account' will be taxed in the manner and in the year as prescribed by the Central Government.
The expression 'specified person' will be defined as the person who is residing in India but opened the 'specified account' while resident in that foreign country. Guide to NRI accounts.
The finance ministry has proposed to define a 'specified account' as an account maintained by NRIs in a foreign country for retirement benefits. The income from such an account is not taxable on an accrual basis and is taxed by the foreign country at the time of withdrawal or redemption. The amendment will take effect from April 1, 2022, and will accordingly apply to the assessment year 2022-23 and subsequent assessment years.
While presenting the Union Budget 2021, finance minister Nirmala Sitharaman proposed to incentivize incorporation of one-person companies (OPCs) including the clause to allow non-resident Indians (NRIs) to incorporate OPCs in India.
India already ranks reasonably high on the World Bank's Ease of Doing Business index(EoDB). And as we see more NRIs return to the motherland to engage in a booming economy, this move will attract more entrepreneurs and innovators to test the Indian startup waters before committing too much.
One person company (OPC), as the name suggests, means a company formed with only one person as a member. While announcing the OPC scheme, the finance minister said mentioned the following points:
OPC scheme was first recommended by the Dr. J.J Irani Committee report dated May 31, 2005, with the vision that a simpler regime through exemptions should give rise to single entrepreneurs operate in the economic domain and contribute effectively by reducing his/her time, energy, and resources on procedural matters
The key feature of an OPC until now was that the member and nominee have to be a resident of India, which means that they should have stayed in India for more than 182 days during the immediately preceding one calendar year. This has now been reduced to 120 days, thus easing the entry of the NRIs.
According to the Companies Act, 2013, if the paid-up share capital limit of the OPC exceeds the prescribed limit which is currently at Rs.50,00,000 ($68,380) or turnover exceeds Rs.200,00,000 ($2,73,519) in three years preceding consecutive years, then the company shall lose its status as an OPC and shall be required to compulsorily convert to either to a private company or public company.
The budget has changed this requirement also as OPCs will be allowed to grow without any restriction on paid-up capital and turnover, allowing conversion into any other type of company at any time.
To find out which type of entity suits your entrepreneurial drive, read our complete guide for NRIs to start a business in India.
Abound, a comprehensive super-app tailored for Non-Resident Indians (NRIs), has successfully secured $10 million in funding from the Times of India Group. This investment aims to bolster the app's remittance services, providing a more streamlined and cost-effective solution for expats.Nishkaam Mehta, the CEO of Abound, expressed in a press release on Monday that the primary objective of the app is to alleviate the complexities and high costs associated with traditional financial services for expats. He further emphasized that this borderless super-app is designed to cater to the distinct financial needs of Indian expats across various regions, enabling them to transcend geographical limitations and live their lives to the fullest.According to World Bank estimates from the previous year, remittances witnessed a 5% growth in 2022, reaching a staggering $626 billion. These transfers serve as a crucial financial lifeline for individuals sending money back home to their loved ones. Furthermore, with approximately 1.4 billion adults still without bank accounts, the need for innovative money transfer solutions is more pressing than ever.Abound, a venture of the Times of India Group and previously known as Times Club, is specifically crafted for Indian expatriates residing in the U.S. The app allows users to transfer funds to India without the hassle of long wait times or transfer fees. In addition to this, membership on the platform comes with a host of benefits including cash-linked and loyalty rewards, curated content, and access to both online and offline commerce. As more NRIs seek innovative financial management solutions, Abound positions itself as the ultimate all-in-one platform with features such as:Daily Shopping Rewards: Recognizing the significance of everyday spending for Indian expats, Abound offers a plethora of daily shopping rewards and cashback offers, enabling users to maximize their purchases.Exclusive Offers Across Categories: Abound provides its users with exclusive deals and offers across a wide range of categories, from groceries and entertainment to shopping and travel, thereby enhancing their lifestyle experiences.To commemorate the launch of its remittance feature, Abound is introducing a limited-time promotion for early adopters, offering an exchange rate of $1=₹83 for money transfers to India.Join the NRI community in ushering in a new era of financial management with Abound. The app is readily available for download on both Android and iOS devices, ensuring easy access and a seamless user experience.
According to recent data released by the central bank, Mexico received an impressive sum of nearly $5.7 billion in remittances during the month of May, setting a new monthly record. However, analysts caution that the strength of the peso against the dollar may have mitigated this achievement.Since the majority of remittances to Mexico originate from the United States, the value is recorded in dollars. Goldman Sachs analyst Alberto Ramos explains that "a strong peso hurts remittances," referring to the fact that the appreciation of the Mexican currency has an adverse effect on the funds received when converted from dollars to pesos.Interestingly, the peso has emerged as one of the top-performing currencies this year, appreciating over 13% against the U.S. dollar between May 2022 and May of this year.Due to the peso's appreciation, when measured in local currency, remittances actually experienced a 2.2% decline compared to the previous year, as stated by Ramos.Mexican President Andres Manuel Lopez Obrador has consistently highlighted the positive impact of remittances on the country's economy. The funds, primarily originating from the United States, have played a significant role in Mexico's economic growth.In 2022, Mexico recorded a record high of $58.5 billion in remittances from abroad, making it the second-largest recipient country, trailing only behind India.Despite the challenges posed by the "super peso," the dollar value of remittances sent in May increased by nearly 11% compared to the previous year.The latest data for May reveals a substantial jump of almost 14% compared to the previous month, resulting in a total inflow of funds reaching $24.67 billion this year.Notably, this amount surpasses the combined revenue generated by oil and agricultural exports during the same period, as noted by analysts at Mexican brokerage Monex.Analysts at Monex and BBVA attribute part of the May surge to the celebration of Mother's Day, suggesting that around 10% of the increased transactions can be attributed to this commemoration.The number of transactions in May experienced a 7% year-on-year increase, reaching a total of 14.56 million. Furthermore, the average amount per transaction rose by 3% to $391.Goldman Sachs' Ramos emphasizes that the strength of remittances reflects the robust U.S. labor market and visible wage growth, particularly in sectors where Mexican citizens are prominently represented.To compare today's best rates when remitting money to Mexico, use CompareRemit's easy-to-use USD to MXN exchange rate comparison tool!
New York, 27/05/2023 – Taptap Send, the innovative mobile money transfer application, is proud to announce its partnership with leading remittance solution provider CompareRemit.com. With a focus on empowering immigrants, Taptap Send simplifies the process of sending money back home to India, Pakistan, Philippines, Bangladesh, Sri Lanka, and Nepal.Sending money across borders has long been a complex and expensive endeavor for immigrants supporting their families and loved ones. Taptap Send was developed to address these challenges, providing a user-friendly mobile application that streamlines and optimizes the money transfer process, all through the convenience of a smartphone.Taptap Send offers a range of features designed to enhance the experience for immigrants sending funds back home:Competitive Rates and No Transfer Fees: Taptap Send leverages technology to streamline operations, resulting in more affordable transfers compared to traditional methods.Mobile Accessibility: The Taptap Send mobile application ensures users can initiate money transfers anytime, anywhere.Transparent Pricing: Users are provided with upfront information on exchange rates, allowing them to make informed decisions and have a clear understanding of the total cost of the transfer.Taptap Send aims to break down the barriers faced by immigrants when sending money back home, enabling them to provide vital support to their families and communities with ease and efficiency.Through its partnership with CompareRemit.com, Taptap Send further expands its reach and impact, offering immigrants a comprehensive range of remittance solutions tailored to their specific needs and requirements.To learn more about Taptap Send and explore the various money transfer options available for sending funds to India, Pakistan, Philippines, Bangladesh, Sri Lanka, and Nepal, please visit the Taptap Send website.About Taptap Send:Taptap Send is a mobile money transfer service that simplifies and enhances the process of sending funds internationally. Designed with immigrants in mind, Taptap Send offers a user-friendly mobile application that empowers users to initiate money transfers conveniently and affordably, providing vital support to their families and loved ones across borders.Media Contact:Name: Anthony JacobTitle: Head of Growth, South AsiaEmail: [email protected]