International Taxation & NRI Services

Cross-border economic activity often leads to the same income being taxed in two different countries. At Ajay Arun Mehta & Associates, we leverage Double Taxation Avoidance Agreements (DTAA) to ensure our clients pay tax only where it is legally due.

• - Treaty Shopping vs. Treaty Selection: We analyze the specific treaties between India and the country of residence (e.g., India-USA or India-Canada) to identify the most beneficial tax rates for royalties, interest, and dividends.
• - Tax Residency Certificates (TRC): We assist in obtaining and validating TRCs and Form 10F to claim lower withholding tax rates under the Income Tax Act.

Selling property in India as an NRI involves complex tax withholding (TDS) requirements.

• - Section 195 Compliance: Buyers are often required to deduct 20% (plus surcharge) on the sale price. We help NRIs obtain Lower or Nil TDS Certificates from the Income Tax Department to ensure tax is only deducted on actual gains, not the total sale value.
• - Reinvestment Strategies: Guidance on Sections 54 and 54EC to exempt capital gains by reinvesting in residential property or specified bonds in India.

Any remittance from India to a foreign country requires a tax clearance.

• - Form 15CB: As Chartered Accountants, we provide the mandatory 15CB certificate after verifying that the correct taxes have been paid on the amount being remitted.
• - Form 15CA: We manage the online filing of Form 15CA (Parts A, B, C, or D) on the Income Tax Portal to ensure the bank processes the foreign outward remittance without delay.

For businesses with international group entities, "Arm's Length Price" is the standard for transparency.

• - Documentation & Benchmarking: We maintain the mandatory Transfer Pricing documentation (Local File/Master File) and conduct benchmarking studies to justify inter-company transactions to the tax authorities.
• - Country-by-Country (CbC) Reporting: Ensuring large multinationals comply with the transparency requirements of the BEPS (Base Erosion and Profit Shifting) framework.

The Foreign Exchange Management Act (FEMA) governs how much and how often an NRI can move money out of India.

• - USD 1 Million Scheme: We guide NRIs on the liberalized remittance scheme allowed for the repatriation of balances in NRO accounts (e.g., from inheritance or property sales).
• - NRE/NRO/FCNR Management: Strategic advice on which account type offers the best tax and repatriation benefits based on the source of funds.

The number of days spent in India determines whether your global income or only your Indian income is taxable.

• - RNOR Status: We help returning Indians manage "Resident but Not Ordinarily Resident" status, which provides a tax-exempt window for their foreign income for up to two years.