How are my UAE investments taxed in India?

— Names reserved upon request

Investing in Dubai does not have any income tax implications. However, as funds are sent abroad, the rules set by the RBI and FEMA (Foreign Exchange Management Act) must meet certain compliances.

For this situation, you may also want to consider LRS (Freedom Remittance Scheme). Once the return on investment is received, there are tax implications.

The establishment of a company in Dubai will be governed in accordance with UAE law in a specific form or nature of the organization that is permitted to be used by non-residents of the country.

The legal form is the basis for determining the applicable laws and regulations, and mainly depends on the business needs. The legal form of the business must match the business activity. Yes, we have a DTAA with the UAE.

If a foreign permanent resident (who is also a non-resident under FEMA) stays in India for more than 182 days, is the income he receives as interest on a non-resident external (NRE) account eligible under the Act?

— Names reserved upon request

In general, people who visit India temporarily but do not intend to reside here permanently may continue to claim a waiver of interest earned on their NRE account.

Their status will also be non-residents, or residents but not usual residents for tax purposes. Unless they decide to live permanently in India, they may continue to claim interest waiver on the NRE account.

Archit Gupta is the founder and CEO of Clear.in.