Can My Wife Buy Euros From My NRO Funds?

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I am an NRI (non resident Indian) living in Europe and having an NRO (non-resident ordinary) account in India in my name. My wife and I want to buy euros from the funds I have in my NRO account when we visit India. Can my wife also purchase euros from the funds in my NRO account? —Name withheld on request Under the exchange control law, an individual may remit outside India up to $1 million per financial year from the NRO account subject to payment of applicable taxes in India. Accordingly, you may purchase euros from funds in your NRO account in India as the account is in your name. However, your wife may not be able to purchase euros from your account. SI am 45 years old and work with an FMCG major. I will be moving to France for a job as a consultant for the next few years. What will be the tax implications of being an overseas consultant? Can I reduce my tax liability while complying with tax regulations in India? —Name withheld on request The taxability of your income in India will depend on the following: a) Residential status b) Source of income c) Place of receipt of income An individual qualifying as ‘Resident and Ordinarily Resident (ROR)’ is taxable on worldwide income and is required to report his assets outside India in his Income-tax Return. However, if the individual qualifies as ‘Non Resident (NR)’ or ‘Resident but Not Ordinarily Resident (NOR)’ is taxable only on India sourced income (i.E. Income earned or received in India). Residential status is determined based on physical presence of an individual in India during a financial year (FY) and the preceding 10 FYs. Residential status is dynamic and needs fresh determination each year. In your case, you will need to first determine your residential status in India. If you qualify as ROR, your overseas consultancy income will be taxable in India. However, if you qualify as NR / NOR, overseas consultancy income will not be taxable in India unless it is received directly into a bank account in India or derived from profession set up in India. Benefits may be claimed under the Double Taxation Avoidance Agreement (DTAA) between India and France. Sonu Iyer is tax partner and people advisory services leader, EY India. Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates. More Less