NRIs giving up Indian addresses to escape scrutiny by Tax Authorities

[vc_row][vc_column][vc_column_text]In the past few years, hundreds of non-resident Indians (NRIs) have been either summoned or served notices by the Income Tax (I-T) Department and Enforcement Directorate (ED) — sparking fear and unease among many in the diaspora who were asked to explain assets and earnings for certain years.

Now, many have found a ploy to escape the glare of the Indian authorities and avoid the trouble that follows. It’s simple: they are changing the Indian addresses mentioned in their passports to their current addresses in countries where they reside. This helps to establish and reinforce their tax residency status in the country concerned and stops the automatic flow of financial information to the government of another country (India).

A large number of individuals named in the Paradise and Panama papers happen to be NRIs.

The new address is recorded in their documents with overseas banks where they have the accounts — either in the names of family members or, companies and offshore trusts. Banks are the prime source of information on fund movements and assets for the Indian government. However, this source can dry up with the change in address. Overseas banks do not share information on their ‘tax residents’ with authorities in other countries.

As long as the account holder’s address in a bank’s records is a local one, the bank passes on information only to the government of that country (and not India).

It’s a loophole in the systematic information sharing arrangements that countries struck with each other to access data on undisclosed assets and produce evidence of tax evasion.

Resident Indians pay tax in India on their earnings at home as well as abroad, but the tax NRIs pay to the Indian government is only on their income in India.

“If an NRI is paying tax in a particular country, he or she is in a position to change the address in the passport to the present address in the foreign country. He is recognized as a tax resident of that country. This interrupts any exchange of information under Common Reporting Standard-…Many NRIs, I believe, have done this to avoid the inconvenience of responding to the I-T and other departments

As per changes in international tax legislations, financial institutions worldwide are required to report customers’ account information based on tax residence to the local tax authorities where the financials accounts are held

The general requirement for determining tax residency is self certification of either passport, national identity card, driving license or other supporting documents such as utility, credit card bills. For an NRI, tax residence generally relates to the country where the person lives and works or where she has, or has had, the obligation to file a tax return or is subject to income tax. In the CRS forms, in which bank account holders have to share their details, many NRIs do not disclose their tax position in India but only mention the country of stay where they are tax residents.

For instance, Belgium taxes residents following a source-based taxation policy, i.e., the place where the taxpayer manages wealth, lives and works. According to the Belgium financial institution format for CRS declaration, one can provide Permanent Residency card number and local address in the form and remain silent on the Indian tax position.

“This results in them being out of CRS for Indian Authorities. It’s similar in the UK which follows a domicile-based taxation i.e. on number of days a resident stays in the country. Indian Authorities may not have possibly received any information about NRIs with local addresses

Brokers, certain collective investment vehicles, and some insurance companies – besides banks – have to report under CRS. In case of trusts, CRS rules require looking through the trusts to report the names of ultimate beneficial owners or individuals who control the trusts. A CBDT spokesperson did not comment on subject.[/vc_column_text][/vc_column][/vc_row]

NRIs: Three changes to tax rules that decide Residential Status Tax Fears

[vc_row][vc_column][vc_column_text]A large number of Indians work outside India or have businesses outside India. They visit India, at times for an extended period, or after a stint abroad, even return to India. Tax Liability in India in such cases depends on whether a person is a resident or a non-resident. If an individual is not a resident in India, only then is the income that is earned in India or which is received in India is taxable in India. So, to avoid world income becoming taxable in India, one must be careful about the period of stay in India.

The Finance Minister, in the Budget that she presented last month, has proposed three changes to the rules for deciding the residential status of an individual.

An individual becomes a resident in India if he satisfies any one of the following conditions: (i) he has stayed in India for 182 days or more in the financial year; or (ii) he has stayed in India for 60 days or more in the financial year and his total stay in the earlier four financial years is for 365 days or more.

However, in the case of Indian citizens and Persons of Indian Origin (PIO), the second condition is relaxed. The relaxation enables them to stay longer in India without becoming liable to tax on their world income. Presently, if an Indian citizen or a PIO visiting India stays in India for less than 182 days, he/she retains his status as a non-resident. The Finance Bill proposes to reduce this period of 182 days to 120 days.  As a result, now, if an Indian citizen or a PIO stays in India for 120 days or more while visiting India, he/she will become a resident of India. This may make his/her world income chargeable to tax in India.

The second change proposed is an anti-abuse measure. Some persons, particularly high net worth Individuals (HNIs) manage their stay in various countries in such a way that they do not become residents of any country for tax purposes. They are classified as ‘stateless Indian citizens.’ The Finance Bill proposes to introduce a new provision for such stateless Indian citizens. Under the new proposal, if an Indian citizen is not liable to tax in any country on account of his/her stay or domicile, he/she will be considered as a resident in India. As a result, she/he may become liable to pay tax in India on her/his world income.

This proposal created a genuine fear that Indians working in countries such as the UAE, which do not levy income tax, will be deemed as residents. In such a case, they will have to pay tax in India on their salaries earned abroad. The government immediately issued a press release stating `The new provision is not intended to include in tax net those Indian citizens who are bonafide workers in other countries. In some section of the media the new provision is being interpreted to create an impression that those Indians who are bonafide workers in other countries, including in Middle East, and who are not liable to tax in these countries will be taxed in India on the income that they have earned there. This interpretation is not correct.’ The government’s communication also stated that in the case of Indian citizens who become deemed residents of India under this proposed provision, income earned outside India by them shall not be taxed in India unless it is derived from an Indian business or profession and, if required, necessary clarification will be incorporated in the law. Let us hope that it is done when the Finance Bill is passed.

While the two proposals considered above are restrictive, the third proposal relaxes and simplifies the criteria to become a `Not Ordinary Resident’ (NOR). In the case of an NOR, although he/she is a resident, his/her foreign income is not chargeable to tax in India unless it is from a business controlled from India or profession set up in India. This provision is particularly helpful to returning Indians. It gives them time to arrange their affairs before their foreign income becomes taxable in India.

Presently, to become an NOR, a person must be a non-resident for at least nine out of the 10 previous financial years or his/her total stay in India should not be more than 730 days in the preceding seven financial years. It is now proposed that an individual will be an NOR if he/she has been non-resident for at least seven years out of the 10 preceding financial years. The other condition of `not more than 730 days stay’ in India is being deleted. Now a returning Indian, who has been a non-resident for 10 years or more, will be an NOR for four years and his/her foreign income will not be taxed when he/she is an NOR. A welcome change, indeed.[/vc_column_text][/vc_column][/vc_row]

No Second Chance for NRI’s to deposit demonetized currency

[vc_row][vc_column][vc_column_text]External Affairs Minister Sushma Swaraj has ruled out any new window of opportunity for NRIs or people of Indian-origin to deposit their high value Indian currency which was declared illegal after the demonetisation policy, a statement said today.

Swaraj made these remarks during her interaction with a delegation of Global Organisation for People of Indian Origin (GOPIO) during her trip to New York last week, a media statement said.   “Swaraj informed that the government had provided the time window for Non-Resident Indians (NRIs) who are Indian citizens to deposit their currencies earlier.

However, that window was not open for Diaspora Indians with foreign citizenship and the government would not be able to provide another such chance,” the GOPIO statement said.

Prime Minister Narendra Modi announced his demonetisation policy on November 8 last year, banning old currency notes of Rs 500 and Rs 1000 denomination.

According to GOPIO, overseas citizens of India and people of Indian-origin are still holding demonetised currencies as the Reserve Bank of India did not allow them to deposit them.

“Diaspora Indians have close to Rs 7,500 crores still lying with them in small amounts. What should the NRIs do with the old currencies?” GOPIO asked.

During the meeting, GOPIO delegation said that NRIs did not have Aadhaar card for linking with their bank accounts.

“Swaraj clarified that NRIs won’t require Aadhaar card to operate their bank accounts,” it said.

GOPIO suggested that Indians citizen living anywhere in the world have an Aadhaar card similar to all US citizens having a social security number, whether staying in America or outside.

It complimented Swaraj and the Indian Missions worldwide for their pro-active role in helping Indians living outside India in time of distress, the statement said.

“However, as more Middle East NRIs are returning home, we need to develop programmes to help resettle them. Swaraj said that there are many programmes for skills development as well as money available from different ministries for starting a business or technology related outfit,” the statement added.

GOPIO has offered to be facilitator between the returned NRIs and the government Consul General of India in New York Sandeep Chakravorty also participated in the meeting.[/vc_column_text][/vc_column][/vc_row]

Modification of Residency Provisions Circa Finance Bill 2020

[vc_row][vc_column][vc_column_text]Sub-section (1) of section 6 of the Act provides for situations in which an individual shall be resident in India in a previous year.

Clause (c) thereof provides that the individual shall be Indian resident in a year, if he,-

(i) has been in India for an overall period of 365 days or more within four years preceding that year, and

(ii) is in India for an overall period of 60 days or more in that year.

Clause (b) of Explanation 1 of said sub-section provides that an Indian citizen or a person of Indian origin shall be Indian resident if he is in India for 182 days instead of 60 days in that year. This provision provides relaxation to an Indian citizen or a person of Indian origin allowing them to visit India for longer duration without becoming resident of India.

Instances have come to notice where period of 182 days specified in respect of an Indian citizen or person of Indian origin visiting India during the year, is being misused. Individuals, who are actually carrying out substantial economic activities from India, manage their period of stay in India, so as to remain a non-resident in perpetuity and not be required to declare their global income in India.

Sub-section (6) of the said section provides for situations in which a person shall be “not ordinarily resident” in a previous year.

Sub-section (1) of section 6 of the Act provides for situations in which an individual shall be resident in India in a previous year.

Clause (c) thereof provides that the individual shall be Indian resident in a year, if he,-

(i) has been in India for an overall period of 365 days or more within four years preceding that year, and

(ii) is in India for an overall period of 60 days or more in that year.

Clause (b) of Explanation 1 of said sub-section provides that an Indian citizen or a person of Indian origin shall be Indian resident if he is in India for 182 days instead of 60 days in that year. This provision provides relaxation to an Indian citizen or a person of Indian origin allowing them to visit India for longer duration without becoming resident of India.

Instances have come to notice where period of 182 days specified in respect of an Indian citizen or person of Indian origin visiting India during the year, is being misused. Individuals, who are actually carrying out substantial economic activities from India, manage their period of stay in India, so as to remain a non-resident in perpetuity and not be required to declare their global income in India.

Sub-section (6) of the said section provides for situations in which a person shall be “not ordinarily resident” in a previous year.

Clause (a) thereof provides that if the person is an individual who has been non-resident in nine out of the ten previous years preceding that year, or has during the seven previous years preceding that year been in India for an overall period of 729 days or less.

Clause (b) thereof contains similar provision for the HUF. This category of persons has been carved out essentially to ensure that a non-resident is not suddenly faced with the compliance requirement of a resident, merely because he spends more than specified number of days in India during a particular year.

Such a circumstance is certainly not desirable; particularly in the light of current development in the global tax environment where avenues for double non-taxation are being systematically closed. In the light of above, it is proposed that-

It is proposed that exception provided to Indian citizen/person of Indian origin is suitably amended to make him an Indian resident if he is in India for an overall period of 120 days in that particular year.

It is also proposed that an individual or an Individual or an HUF shall be said to be ‘Not Ordinarily resident’ in India in previous year, if the individual/manager of the HUF is a non – resident in India in seven out of ten previous Years preceding that year.

Further, an Indian citizen who is not liable to tax in any other country or territory by reason of his domicile or residence shall be deemed to be resident in India for the purposes of taxation and accordingly global incomes of such person may be taxed in India.[/vc_column_text][/vc_column][/vc_row]

Major Relief Announced for OCI Card Holders with Renewed Passports

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Ludhiana

Overseas Citizens of India (OCI) card holders, who are either below 20 years of age or above 50 years and have renewed their passports, can continue their travel to India till June 30, according to an official notification issued on December 17. This is subject to them carrying both, the old and the new passports along with the OCI card.

The move comes after a large number of OCI card holders in the last few months complained that they were being subject to harassment by both the immigration authorities and airline officials in implementing a little-known provision of the OCI, which were not being enforced so far.

In the last several months, Indian diplomatic missions and eminent Indian-Americans were flooded with such complaints.

In many cases OCI card holders had to cancel their trip to India or had to abruptly return mid-way from places like Dubai and Singapore.

The Indian-Americans have complained that they were not aware that every time an OCI card holder below the age of 20 and above the age of 50 years renew their passport they have to apply for renewable of OCI card too.

Overseas Citizens of India (OCI) card holders, who are either below 20 years of age or above 50 years and have renewed their passports, can continue their travel to India till June 30, according to an official notification issued on December 17. This is subject to them carrying both, the old and the new passports along with the OCI card.

The move comes after a large number of OCI card holders in the last few months complained that they were being subject to harassment by both the immigration authorities and airline officials in implementing a little-known provision of the OCI, which were not being enforced so far.

In the last several months, Indian diplomatic missions and eminent Indian-Americans were flooded with such complaints.

In many cases OCI card holders had to cancel their trip to India or had to abruptly return mid-way from places like Dubai and Singapore.

The Indian-Americans have complained that they were not aware that every time an OCI card holder below the age of 20 and above the age of 50 years renew their passport they have to apply for renewable of OCI card too.[/vc_column_text][/vc_column][/vc_row]

Indian Govt approves 100% FDI in Single-brand retail & Construction

[vc_row][vc_column][vc_column_text]The Cabinet on Wednesday approved key changes in India’s foreign direct investment (FDI) policy by easing investment norms across sectors including aviation, construction and single brand retail among others.

The Narendra Modi-led government has allowed 100 percent FDI under automatic route for single brand retail trading and construction development. Currently, for single brand retail, FDI up to 49 percent is allowed under automatic route

Similarly, foreign airlines can now invest up to 49 percent via government approved route in Air India. In addition, foreign institutional investors (FIIs) can now invest in power exchanges through primary market and definition of ‘medical devices’ has been amended in the FDI policy, the government said in a release.

 

These amendments are government’s broader strategy to liberalise and simplify the FDI policy to facilitate ease of doing business and turn India into a global investment hotspot.

The government has decided to allow single brand retail trading entity to set off its incremental sourcing of goods from India for global operations during initial 5 years, beginning April 1 of the year of the opening of first store against the mandatory sourcing requirement of 30 percent of purchases from India.

Hence, incremental sourcing will imply an increase in terms of value of such global sourcing from India for that single brand (in INR terms) in a particular financial year over the preceding financial year, by the non-resident entities undertaking single brand retail trading entity, either directly or through their group companies.

After completion of this 5-year period, the single brand retail trading entity shall be required to meet the 30 percent sourcing norms directly towards its India’s operation, on an annual basis,” the government release said.

According to experts, FDI in single brand retail trading sector will now gain momentum as the government has removed various procedural hurdles.

“The approval through automatic route with respect to single brand retail trading will quicken the FDI clearance process as no prior government approval would be required. We expect that FDI in single brand retail trading sector will now gain further momentum due to the process not being subject to regulatory scrutiny and approval process,” Rabindra Jhunjhunwala, Partner, Khaitan & Co said.

In case of the aviation sector, foreign airlines currently can make investment up to 49 percent of their paid up capital via government route in Indian companies operating scheduled and non-scheduled air transport services. However, the provision was not applicable to Air India, implying that foreign airlines could not invest in the national carrier.

“It has now been decided to do away with this restriction and allow foreign airlines to invest up to 49 percent under approval route in Air India subject to the conditions that foreign investment(s) in Air India including that of foreign Airline(s) shall not exceed 49 percent either directly or indirectly. Substantial ownership and effective control of Air India shall continue to be vested in Indian National,” the release said.

In 2016, the government had brought FDI policy reforms in a number of sectors such as defence, construction, insurance, and pension, other financial services, asset reconstruction companies, broadcasting, civil aviation, as well as pharmaceuticals.

During April-September, 2017-18, FDI inflows grew 17 percent on year at USD 25.35 billion. In the financial year 2016-17, total FDI inflows hit an all-time high of USD 60.08 billion, as compared with USD 55.46 billion a year ago.[/vc_column_text][/vc_column][/vc_row]

How NRIs can avoid Tax & Tds troubles; Claim tax benefits

[vc_row][vc_column][vc_column_text]The government has closed the small savings window for non-resident Indians (NRIs). Till now, NRIs were allowed to keep their PPF accounts and NSCs but not extend them after maturity. The new rules say that existing PPF accounts will be deemed closed and NSCs will be treated as encashed when one becomes an NRI. These investments will now earn just 4% till maturity

These new rules add to the long list of financial discrimination that NRIs face in India. The tax rules for NRIs are quite different from those that apply to resident citizens. Though there is no tax on foreign income, the tax reporting is very elaborate, the TDS rules are quite stiff and NRIs don’t enjoy some of the tax privileges that normal citizens are eligible for

For instance, NRIs are also not eligible for certain tax deductions, including medical treatment of disabled dependent (under Sec 80DD), treatment of family member suffering from specified diseases (under Sec 80DDB), disability of self or dependent (under Sec 80U) or royalty income (under Sec 80QQB).

TDS can be a pain Tax deduction at source (TDS) is a major pain point for NRIs. Resident investors in stocks and mutual funds are not subjected to TDS, but NRIs are. Short-term capital gains from stocks are subject to 15% TDS, while those from debt funds and debentures, gold and property are slapped a higher rate of 30%. Even long-term gains from property and gold are subject to 20% TDS. The TDS on the interest on bank deposits is only 10% for resident Indians, but NRIs have to cough up 30%

If an NRI earns rent from property in India, the tenant has to deduct 30% TDS from the payment. The various procedures required add to the problems. NRIs need to submit Form 15 CA for remittance of their rental income

In certain cases, a certificate is also necessary wherein a chartered accountant certifies the details of the payment, TDS rate, and TDS deduction as per Section 195, if any DTAA (Double Tax Avoidance Agreement) is applicable, and other details of the remittance

The TDS can be particularly painful for older individuals whose income doesn’t fall in the tax net. Unlike resident Indians, NRIs cannot submit Form 15G or H to escape the TDS. Even a person earning less than Rs 2.5 lakh a year will be subjected to 20-30% TDS

 

How to avoid TDS 

One way NRIs can avoid the high TDS is by being the second holder in joint investments. For all investments, the tax liability is always that of the first holder’s. If the first holder is a resident Indian, the gain will not be subjected to any TDS. Similarly, if the NRI is the second holder in a property, the TDS will not apply unless the rent is above Rs 50,000 a month

Another way to escape tax is by investing in the name of adult children or spouse, if they have resident status. It is also a good idea to gift fixed deposits to major children or parents before going on an overseas assignment. NRIs are not allowed to hold resident fixed deposits

If one already holds a fixed deposit jointly with a resident family member, the bank may allow the deposit to be held till maturity, but not renew it further. If an NRI still wishes to hold a deposit jointly, then he can open an NRO (non-resident ordinary) savings account, with the resident family member as a second holder

Mutual funds can be bought with the resident Indian as primary holder and the NRI as the joint holder. However, equities cannot be held jointly because NRIs who want to trade in the Indian stock markets have to register with a bank offering portfolio investment schemes.

Keep in mind that the joint holding is only to escape TDS. Both investors and property owners would ultimately have to bear the tax liability on the income.

 

Claim tax benefits

Though NRIs are beaten by the TDS stick, they also get some carrots. The interest earned on NRE account is tax-free and continues to be exempt for two years after the individual returns to India

It’s best to retain deposits held in foreign currency in the NRE account to earn tax-free interest for two more years. After two years, when the tax status changes, these deposits can be moved to the regular savings account.[/vc_column_text][/vc_column][/vc_row]

NRIs: Registry date arriving and Lower Deduction Certificate not obtained

[vc_row][vc_column][vc_column_text]NRI Inc. helped NRI to remit funds on Sale of Property without waiting of Lower TDS Certificate

Facts of the case:

NRI wanted to sale his property amounting to Rs 2.00 Crores and had applied for Lower deduction of Tax on 20.02.2020 to enable deduction of less than 20.8% of TDS.

The Registry date was 12.03.2020 and the client approached us on 28.02.2020. Further, he had to leave few days in advance for his hometown due to a global pandemic, which had started spreading globally.

The client had applied for the Lower TDS deduction which normally takes 30 days to get processed.

 

Outcome:

NRI Services Inc. analyzed all the information provided by the client

 

By making use of certain Apex Court judgments and the intricate provisions of Income Tax, found out solution to enable client get the maximum proceeds from the sale of property.

 

As a result, the NRI Client did not have to wait for lower TDS deduction and was able to remit the complete sale proceeds from sale of property. NRI Services Inc also got his remittance documents processed within 2-3 days.

 

Not only he reached home safe and sound, but NRI services Inc took care of his worry of TDS deduction and also avoided the blocking of his funds in the form of TDS Credit. The money had reached his bank account before he could reach home.

Further, the client did not had to again get the remittance of the funds back after the due TDS claim, as and when it would have got credited to him.[/vc_column_text][/vc_column][/vc_row]

Golden Opportunity To File It Refunds For Tds Unclaimed/Excess Deducted

[vc_row][vc_column][vc_column_text]Presently, an Income Tax Assessee can only file return for last 2 years and claim refund if any due and not beyond that. In case he missed to file return within prescribe timeline he has no choice other than to forget his refund claim. Income Tax Department in Latest circular No 9/ 2015 has guided on how an assessee who has failed to file return and claim Refund according to section 119(2) (B) can now make an application and get Refund due up to last 6 Assessment years.

 

STEP ONE: FILE AN APPLICATION

In case the amount is less than Rs 10 Lacs for any one assessment year, the application shall be made to the Pr.CIT/CIT. CIT will review the application & communicate with reason for acceptance/ rejection of such applications/claims. In case the amount is more than Rs 10 Lacs the Application shall be made to Chief Commissioner of Income Tax. In case the amount is more than Rs 50 Lacs than the application has to be filed with CBDT.

 

STEP TWO: FILE ITR UPTO LAST 6 YEARS

Condonation application can be filed up to six previous years. Even Loss can be claimed for carry forward. The officer will ensure that the income/loss declared and /or refund claimed is correct and genuine and also that the case is of genuine hardship on merits.

 

STEP THREE: CLEARENCE FROM AUTHORTIES

The power of accepting or rejecting the condonation application of delay shall be subject to following Condition that the Income of Assessee is not assessable in the hands of other person under any provision of Income Tax Act. Further no interest will be admissible on belated claim of refunds and the refund has arisen due to excess payment of Advance Tax or Self-Assessment Tax or due to excess deduction of TDS.

 

STEP FOUR: SUPPLEMENTARY CLAIMS

A belated application for supplementary claim of refund (claim of additional amount of refund after completion of assessment for the same year) can be admitted for condonation provided other conditions as referred above are fulfilled. Assessee will not receive interest on belated claim of refunds.

 

STEP FIVE: CUMULATIVE INTEREST BEYOND SIX YEARS

In the case of 8% Savings (Taxable) Bonds, 2003 issued by Government of India opting for scheme of cumulative interest on maturity but has accounted interest earned on mercantile basis and the intermediary bank at the time of maturity has deducted tax at source on the entire amount of interest paid without apportioning the accrued interest/TDS, over various financial years involved, the time limit of six years for making such refund claims will not be applicable.[/vc_column_text][/vc_column][/vc_row]

Indian Cabinet Easis FDI Norms for Nri’s

[vc_row][vc_column][vc_column_text]The Union Cabinet on Thursday approved a relaxation of policy on investment proposals from Persons of Indian Origin ( PIOs) and Overseas Citizens of India ( OCIs), treating them at par with Non Resident Indians ( NRIs) in this regard.

 

The amendments will lead to greater foreign exchange remittances and investment. The investment under the amended norms will be treated as domestic at par with investment made by resident Indians.

 

NRIs are Indian citizens; the other two are not. “ The decision that NRI includes OCI cardholders as well as PIO cardholders is meant to align the Foreign Direct Investment ( FDI) policy with the governments stated policy to provide PIOs and OCIs parity with NRIs in ( the) economic, financial and educational fields,” was the official statement after the meeting, chaired by Prime Minister Narendra Modi.

 

The government also approved an amendment to Schedule 4 of the Foreign Exchange Management Act (FEMA) Regulations, that NRI investments would be “deemed to be domestic investment made by residents”.

 

“The measure is expected to result in increased investments across sectors and greater inflow of foreign exchange remittance, leading to economic growth of the country… This will enable investments by NRIs, OCI cardholders and PIO cardholders under Schedule 4 on a non repatriation basis, across sectors, without being subjected to any of the conditions associated to foreign investment,” the Cabinet said.

 

The idea is to encourage NRIs owning business ventures abroad to put money here, too, by giving them domestic investment treatment. Presently, under Schedule 4 of FEMA, investments by NRIs are made on a non- repatriation basis, though it has not been provided that these are domestic investments.

Between April 2014 and February 2015, the FDI equity inflow was $ 28.8 billion, a rise of nearly 39 percent over the same period in 2013- 14. The government has tried to liberalize the FDI regime. In its year in power, the FDI limit in the defence sector has been raised to 49 per cent, up to 100 per cent has been permitted in railways and norms pertaining to FDI in construction development were liberalized. And, FDI in the insurance and pension sectors have been permitted up to 49 per cent.[/vc_column_text][/vc_column][/vc_row]