Non-resident India's guide on taxation and investment (States the law as on 15th may, 1986)

This book has been written to fill a need. The non-resident Indians have by their industry and dedication contributed substantially to the prosperity of the countries in which they work as well as to the pro gress of India. The provisions of the Direct Tax Laws, the Foreign Exchange Regulation Act and other fiscal and financial laws impinge on the rights and obligations of these persons.

The non-resident Indians have three basic problems: firstly how to comply with the provisions of the fiscal and financial laws of India which are frequently changing, secondly how to take advantage of the various concessions and incentives that the Government of India has provided for this dedicated group and lastly how to invest their hard earned money so as to ensure safety of funds, proper returns and adequate growth.

The work environment of the non-resident Indian is such that no adequate taxation or financial counselling is available easily. Igno rance of the duties and obligations under the Direct Tax Laws and the Foreign Exchange Regulation Act could be costly. On the other hand, an understanding of the concessions and incentives available under the fiscal and other laws would result in substantial savings. A proper investment planning should take into account the comparative tax liability, yield, capital appreciation and facilities for repatriation. Considerations of yield net of taxation are vital. In an inflationary situation, any worthwhile investment should show substantial capital appreciation. On the other hand, repatriation facilities could be the critical criteria in making an investment decision.