NRI can operate or invest in Indian Business in the following ways:
· Branch/Liaison office with prior permission from RBI (profits of the Branch can be fully repatriated).
· Indian company which is 100% wholly owned subsidiary/ Joint Venture on repatriation and non-repatriation basis without permission of RBI in most of the sectors. For investments on repatriation basis, the prohibited sectors include retail trading, domestic wholesale trading and print media besides a few others.
· Partnership/ Proprietary business on non-repatriation basis (income is on repatriation basis) in any activity except in agriculture, plantation and real estate (except real estate development) without permission from RBI.
It is very important to note that now even the sale proceeds of investments held on non-repatriation basis can be repatriated up to USD 1 million per calendar year.
Now, expect I-T refunds sooner Income tax assesseess may soon hope to get their refund amounts earlier than they are used to now. The income tax department will be coming up with a central processing centre in Hyderabad, which may help in early assessment of income tax returns, followed by early refunds. The facility, being developed in association with IT major Infosys, is expected to be inaugurated in a couple of months, said chairman of the central board direct taxes SSN Moorthy. He was in the city-based National Academy of Direct Taxes (NADT) to address the valedictory function of the 61st batch of Indian Revenue Service (IRS) officers. Moorthy said the processing centre will lead to clearing of refund cases in a couple of months. The process currently takes at least four months and may go even longer.