India Dual Citizenship Mega Thread (Merged)

[fitness99]

Does anyone knows what would be the status of NRE accounts once person gets OIC ?Right on as per FEMA once NRI returns to india for more than 180 days he/she loses the NRI status and becomes "local resident" of the country and hence won't get tax benefits anymore. Is this going to be same for OIC as well?

My understanding is that NRI also refers to people with Indian passports residing outside the country. They enjoy the NRE account benefits as well, but they may loose those once you come back to India and become a resident again.

In my opinion, if you carry a US passport and an OIC or PIO, you are considered a foreigner of Indian origin, and I do not think you can become a resident Indian even if you stay 180+ days in India.

 

[fitness99]

...Retain it? Transfer it? Sell it?
Same is true for residential real-estate?(land or house)?
Thanks in advance.

Look at my posting in this same thread before yours for the answer.

 

[Magician]

In my opinion, if you carry a US passport and an OIC or PIO, you are considered a foreigner of Indian origin, and I do not think you can become a resident Indian even if you stay 180+ days in India.

If this is True then OIC has atleast one advantage over Indian PP and that would be permanent NRE status ---> Tax benefits for life Unless RBI starts applying the new NRI rules to OIC holders in future.

 

[qwert97]

If this is True then OIC has atleast one advantage over Indian PP and that would be permanent NRE status ---> Tax benefits for life Unless RBI starts applying the new NRI rules to OIC holders in future.

I do not think this is true. The Income Tax act clearly states that a person is considered a resident if his stay in India is more than 180 days. Unless they make an amendment in the tax laws I think NRI will be considered a resident for tax purposes. Residency for the purposes of taxes has nothing to do with residence as per other laws.

 

[sg_orl]

I do not think this is true. The Income Tax act clearly states that a person is considered a resident if his stay in India is more than 180 days. Unless they make an amendment in the tax laws I think NRI will be considered a resident for tax purposes. Residency for the purposes of taxes has nothing to do with residence as per other laws.

Yes, You are correct. I have read the same thing in a regular Tax Column on these issues in "India Abroad" newspaper. If you stay in India for more than 180 days, you become a resident for tax purposes, but there is another status called RNOR (Resident but Not Ordinarily Resident) that gives you a break, if you end up staying more than 180 days, but if you had stayed abroad for certain number of years with in the last 5 or 7 years. It's a complex tax jargon.

 

[mangal969]

Looks like they are going to reduce the "wait" period for an OIC living in India to one year for becoming a full Indian citizen.I read somewhere that a bill has been put in parliament to that effect.
Any news if OIC is really going to start on August 15th ?With the ordinance already in place i see no logical reason for this delay.....

 

[mangal969]

Yes, You are correct. I have read the same thing in a regular Tax Column on these issues in "India Abroad" newspaper. If you stay in India for more than 180 days, you become a resident for tax purposes, but there is another status called RNOR (Resident but Not Ordinarily Resident) that gives you a break, if you end up staying more than 180 days, but if you had stayed abroad for certain number of years with in the last 5 or 7 years. It's a complex tax jargon.

I know this is absolutely out of context and i apologise for that but how does one get a subscription to the "India abroad" newspaper ? And what does it cost ?

Thanks

 

[sg_orl]

I know this is absolutely out of context and i apologise for that but how does one get a subscription to the "India abroad" newspaper ? And what does it cost ?

Thanks

Check the website of India Abroad at:
http://www.indiaabroad.com

For subscription:
https://commerce.rediff.com/iazone/iausa.htm?ushome

 

[fitness99]

Looks like they are going to reduce the "wait" period for an OIC living in India to one year for becoming a full Indian citizen.I read somewhere that a bill has been put in parliament to that effect.
Any news if OIC is really going to start on August 15th ?With the ordinance already in place i see no logical reason for this delay.....

Now I am confused....what is a full Indian citizen? I thought if you are an USC, you can only be an OIC. If you become a full Indian citizen, are you giving up USC?

 

[mangal969]

Now I am confused....what is a full Indian citizen? I thought if you are an USC, you can only be an OIC. If you become a full Indian citizen, are you giving up USC?

Yup.A full indian citizen means a resident Indian.

If you are an OIC and want to convert to a full indian citizen i.e give up your US citizenship then you have to live in India only for a year before you can apply.It was formerly fixed at two years and before OIC ever existed it was seven years.

But i dont see the logic of this-If you can stay in India as long as you want, why would anyone want to give up their US (or other) citizenship for an Indian citizenship????

 

[sg_orl]

But i dont see the logic of this-If you can stay in India as long as you want, why would anyone want to give up their US (or other) citizenship for an Indian citizenship????

There can be any number of reasons. If someone needs to work for the Govt. of India, or has a desire to stand in the elections or vote in Indian elections. The issue of owning agricultural/plantation properties is also up in the air right now, whether or not OIC can own the agricultural/plantation properties.

There is a lot of contradictory information out there. It will make sense to wait and see what exactly comes out for OIC, then see how the process runs to make up your mind whether or not OIC is really worth it.

 

[mangal969]

Future voting rights on the cards ??

http://www.indiadaily.com/editorial/3853.asp

 

[Hotdiggety]

Future voting rights on the cards ??

http://www.indiadaily.com/editorial/3853.asp

Very confusing. This article mixes up a lot of issues and terminology, but here's what I can gather.

They're talking about voting rights for full Indian citizens, who presently cannot vote if they aren't resident in India, even if that's the only nationality they hold. These people would now be allowed to vote.

Overseas Indian Citizens really aren't citizens at all. They are foreign nationals who hold permanent resident (U) visas. As such, they can never be allowed to vote. India effectively continues to outlaw dual nationality.

That at least, is my understanding of what's going on here.

 

[Magician]

Yes, You are correct. I have read the same thing in a regular Tax Column on these issues in "India Abroad" newspaper. If you stay in India for more than 180 days, you become a resident for tax purposes, but there is another status called RNOR (Resident but Not Ordinarily Resident) that gives you a break, if you end up staying more than 180 days, but if you had stayed abroad for certain number of years with in the last 5 or 7 years. It's a complex tax jargon.

OK, I am bit confused here....

I am aware of RNOR status. Basically states "Indian Resident" who stays 9 years out of 10 years abroad gets tax benefits for 2 years when person goes back to country for over 180 days (i.e. becomes loca resident).

Now that person (say OIC holder) after 2 years start paying tax in india. Now when the same person files tax returns for US has to show the "income earned" to govt. of US as well??

Can someone send a link to tax implication details for dual citizenship holder?

 

[Hotdiggety]

OK, I am bit confused here....

I am aware of RNOR status. Basically states "Indian Resident" who stays 9 years out of 10 years abroad gets tax benefits for 2 years when person goes back to country for over 180 days (i.e. becomes loca resident).

Now that person (say OIC holder) after 2 years start paying tax in india. Now when the same person files tax returns for US has to show the "income earned" to govt. of US as well??

Can someone send a link to tax implication details for dual citizenship holder?

The United States is one of 3 countries in the world which taxes people based on their citizenship. Everyone else, including India, use periods of residence to determine whether you are liable for income-taxes. For Indian tax purposes, all that matters is how long you've lived there. Your nationality or visa status is irrelevant.

If you are a US citizen living in India, you'll likely still have to file a 1040 every year. However, if you've paid Indian income-taxes, you should also get an equivalent tax credit on your US return. Since US tax rates are generally lower than India's, you would probably never have to pay US taxes, even though you may still have to file a US return.

 

[mangal969]

Hi!

Mangal, could u pls find out what website this is? The manstris and babus seem to have done some significant damage circa April 11, 2005 ("amendment.."). Need to find out what.

Sorry for the ultra-late response but i had completely forgotten about this

The website is parliamentofindia.nic.in .It contains seperate sections for the lok sabha and rajya sabha and the information is supposed to be reasonably up to date.

My friend who actually monitors this site on a daily basis tells me that the bill has been approved by the rajya sabha and is pending in the lok sabha.I do not have enough knowledge of the civic system to understand why there is a bill once there is an active ordinance.

But i have my doubts, if this is really the case, that they will start accepting registrations on August 15th.
Which level headed entity (Indian or otherwise) would invest their money in a place where even the government's word has no value ??They have issued a press note declaring the date but have kept themselves covered by adding the word "probably".
Also the question arises that if they wanted to put forward a bill and pass it, why did they get an ordinance (something which i understand is for urgent situations) ? And once they got the ordinance approved by the president why are they still sit on it ?

God only knows what is going on ! ! !

 

[lcauser]

Visa-on-arrival for PIOs

In the wake of procedural delays in granting visas to Persons of Indian Origin intending to visit India, the government is considering the option of providing them 'visa-on-arrival'.

"In order to meet the demand, we would take up with the concerned ministries the option of granting them visa-on-arrival," Minister of State for Overseas Indian Affairs Jagdish Tytler said, attributing the delay to "lack of manpower" in the embassies in various countries.

Although the ministry of home affairs has expressed reservations against visa-on-arrival facility due to security reasons, his ministry would try to convince it the need for such an option, Tytler said at a function in New Delhi on Sunday evening.

"Our embassies across the world receive thousands of visa applications annually, but due to the shortage of staff and other reasons, we are able to provide only a few hundred visas," he said.

"In terms of foreign investments too, the contribution of PIOs is immense as they have invested more than $34 billion last year," Tytler said adding that with a relaxed visa regime the figure could touch a whopping $500 billion.

He also said relaxation of visa procedures for an estimated 21 million strong diaspora across the world would benefit the country's tourism and hospitality industry.

 

[fitness99]

In the wake of procedural delays in granting visas to Persons of Indian Origin intending to visit India, the government is considering the option of providing them 'visa-on-arrival'.

"In order to meet the demand, we would take up with the concerned ministries the option of granting them visa-on-arrival," Minister of State for Overseas Indian Affairs Jagdish Tytler said, attributing the delay to "lack of manpower" in the embassies in various countries.

Although the ministry of home affairs has expressed reservations against visa-on-arrival facility due to security reasons, his ministry would try to convince it the need for such an option, Tytler said at a function in New Delhi on Sunday evening.

"Our embassies across the world receive thousands of visa applications annually, but due to the shortage of staff and other reasons, we are able to provide only a few hundred visas," he said.

"In terms of foreign investments too, the contribution of PIOs is immense as they have invested more than $34 billion last year," Tytler said adding that with a relaxed visa regime the figure could touch a whopping $500 billion.

He also said relaxation of visa procedures for an estimated 21 million strong diaspora across the world would benefit the country's tourism and hospitality industry.

I hope they don't charge an arm and a leg for these visa on arrivals! I am sure the government is going to debate this for several years

 

[Calpers]

Visa or PIO

I'm planning to visit India in November. Any advice on whether I should apply for PIO or just go for visitor visa?

How long is it taking currently for PIO in SF consulate?

Thanks!

 

[sg_orl]

I'm planning to visit India in November. Any advice on whether I should apply for PIO or just go for visitor visa?

How long is it taking currently for PIO in SF consulate?

Thanks!

Depends on what your future plans/needs are...PIO cards takes 3-4 weeks + the mailing times. Visa take 10-12 days by mail or if you visit the Consulate then, you get it the same day. PIO Card will cost more, but lets you study and work in India, 10 yr tourist visa costs much less and is great to visit multiple times.