Tax & FEMA Glossary for NRIs

An income-tax deduction provision for specified investments and payments, subject to eligibility and the tax regime applicable to the taxpayer. NRI eligibility varies by the particular investment or payment.

An income-tax deduction provision for eligible health-insurance premiums and specified medical expenditure, subject to conditions and the tax regime applicable to the taxpayer.

A bank authorised by the Reserve Bank of India to deal in foreign exchange. For many cross-border transactions, the designated AD bank reviews FEMA eligibility, purpose codes, supporting documents and the remittance trail.

An Income Tax Department statement that gives taxpayers a broader view of reported financial information, including items such as interest, securities transactions and tax information. It should be reviewed against the return before filing or responding to a mismatch.

An income-tax authority responsible for assessment and related proceedings. In some remittance situations, an order or certificate from the Assessing Officer can determine the applicable Form 145 route.

A certificate used to authenticate certain public documents for use in another country under the Hague Apostille framework. NRIs and foreign residents may encounter apostille requirements when submitting overseas-executed corporate or legal documents in India.

A periodic RBI reporting requirement connected with certain overseas direct investments by Indian residents or entities. It reports information about the foreign entity and is generally filed through the designated AD bank.

Profit or gain arising from the transfer of a capital asset. For NRIs, capital-gains issues commonly arise on Indian property, shares, mutual funds and other investments, with tax rates, TDS and exemptions depending on the asset and facts.

A prescribed deposit mechanism that may be relevant where eligible capital gains are intended to be reinvested for a tax exemption but the reinvestment has not been completed by the applicable tax-filing timeline.

A tax treaty between India and another jurisdiction designed to allocate taxing rights and provide mechanisms for relief from double taxation. Treaty benefits depend on the specific income, residence position and treaty conditions.

An electronic record evidencing realization of export proceeds through the banking system. Exporters may use e-BRC data for trade, tax, incentive and reconciliation purposes.

A declaration used for reporting specified export transactions under India’s foreign-exchange framework. The exact reporting process depends on the nature of the export and the current RBI rules.

An RBI-linked system used by authorised dealer banks to monitor export transactions and realization of export proceeds. It forms part of the banking and FEMA compliance trail for exporters.

A United States tax-information reporting regime that can affect financial institutions and certain taxpayers with US connections. Indian banks and investment providers may ask customers for FATCA-related declarations.

A US reporting form for certain persons with financial interests in or signature authority over foreign financial accounts above the applicable threshold. It is separate from an income-tax return.

An NRI term-deposit account maintained in permitted foreign currencies. It differs from NRE and NRO accounts in currency denomination, deposit structure and exposure to exchange-rate movements.

India’s principal foreign-exchange management law. FEMA rules affect matters such as NRI accounts, overseas investment, foreign investment into India, property transactions, borrowing, remittances and repatriation.

An RBI reporting return relevant to certain Indian entities that have received foreign direct investment or made overseas direct investment. It is a separate compliance requirement from APR.

Relief that may allow eligible foreign tax paid on income to be credited against Indian tax on the same income, subject to Indian law, treaty provisions and documentation requirements.

The current remitter information form for applicable foreign remittances under the Income-tax Rules, 2026. From 1 April 2026 it replaced the earlier Form 15CA framework and contains Parts A, B, C and D for different situations.

The current Chartered Accountant certificate used for applicable taxable foreign remittances under the Income-tax Rules, 2026. From 1 April 2026 it replaced the earlier Form 15CB framework.

The earlier online remitter declaration used for certain payments to non-residents. For remittances under the new framework from 1 April 2026, Form 145 is the current form.

The earlier Chartered Accountant certificate associated with specified foreign remittances. For applicable remittances under the new framework from 1 April 2026, Form 146 is the current CA certificate.

A tax credit statement that reflects items such as tax deducted or collected and certain tax payments associated with a PAN. It is commonly checked before filing an ITR or claiming TDS credit.

An Income Tax Department form used in connection with claiming foreign tax credit in India. Its relevance depends on the taxpayer’s Indian residential status, foreign income and taxes paid overseas.

A bank-facing foreign-exchange declaration or application used in connection with certain outward remittances. Banks may require it along with purpose codes, KYC, tax documents and source-of-funds evidence.

An India-based operation that provides technology, finance, analytics, support or other capabilities to a global group. Cross-border service billing, transfer pricing, GST and FEMA reporting can all be relevant to a GCC structure.

A legal instrument used to document a lifetime gift of property or another asset. Tax, stamp duty, registration and FEMA consequences depend on the asset, parties, relationship and residential status.

A separate taxable person recognised under Indian income-tax law in qualifying cases. HUF ownership and income can create additional questions for families with members living outside India.

The return filed with the Income Tax Department to report taxable income, deductions, taxes and other prescribed information. The correct ITR form depends on the taxpayer type and sources of income.

A certificate or order that can permit tax to be deducted at a lower rate than would otherwise be applied to a payment. NRIs selling Indian property commonly explore this route where withholding on gross sale value would materially exceed the expected final tax.

An RBI framework under which resident individuals can make permitted outward remittances within the prescribed annual limit and conditions. LRS is a resident-individual facility and should not be confused with NRI repatriation rules.

A fee mechanism under RBI’s overseas-investment framework that may allow specified delayed filings to be regularised within the permitted framework. Availability and consequences depend on the filing and facts.

A capital gain arising when a capital asset is held beyond the period prescribed for that asset. The holding period, rate and available relief depend on the asset and law applicable to the transaction.

A rupee-denominated account for eligible non-residents, generally used for foreign earnings remitted to India and other permitted credits. Eligible balances are generally repatriable, subject to applicable rules.

A commonly used term for an Indian citizen living outside India. Its precise meaning can differ by context, and tax residence under income-tax law should not be assumed to be identical to residence under FEMA.

A rupee-denominated account commonly used by NRIs for Indian-source receipts such as rent, pension, interest and eligible sale proceeds. Repatriation can require tax, source-of-funds and bank documentation.

A status and card available to eligible persons of Indian origin and certain others under Indian citizenship rules. OCI status does not by itself determine Indian income-tax residence or FEMA residence.

Investment by a person resident in India in a foreign entity that falls within the overseas direct investment framework. ODI can trigger banking, reporting and ongoing compliance requirements.

Overseas investment that falls within the portfolio-investment category rather than ODI. Classification matters because the permitted routes and reporting requirements can differ.

A unique identifier issued by the Income Tax Department. PAN is widely used for Indian tax filings, TDS credit, property transactions, banking and other financial compliance.

A treaty concept used to determine when a foreign enterprise may have sufficient business presence in another jurisdiction for that jurisdiction to tax attributable business profits. The result depends on the relevant treaty and facts.

An Indian tax-residence concept relevant to certain foreign companies. It focuses on where key management and commercial decisions necessary for the business as a whole are, in substance, made.

A court process through which a Will may be proved and authority to administer an estate is recognised. Whether probate is required depends on the Will, property, location and applicable succession law.

A banking classification code used to identify the economic purpose of a foreign-exchange receipt or payment. Choosing the correct code helps the bank report the transaction appropriately.

The transfer of eligible money or assets from India to another country. For NRIs, the route can depend on the source of funds, account type, taxes, annual limits and supporting documents.

A foreign-currency account that may be available to eligible returning residents for holding permitted foreign-currency assets. Eligibility and treatment depend on FEMA rules and the individual’s circumstances.

A category of Indian tax residence between non-resident and ordinarily resident status. RNOR status can materially affect the scope of foreign income and foreign-asset reporting in India.

The foreign-assets schedule in specified Indian income-tax returns. It requires reporting of prescribed foreign assets and interests by taxpayers to whom the schedule applies.

An income-tax provision that can substitute stamp-duty value for stated sale consideration in specified transfers of land or building, subject to the conditions and relief mechanisms in the law.

A capital gain arising when an asset is transferred within the short-term holding period prescribed for that asset. Tax treatment varies by asset and applicable law.

A certificate issued by a tax authority confirming tax residence for a period. It is commonly used when a taxpayer seeks benefits under a Double Taxation Avoidance Agreement.

Tax collected by a specified seller or remittance facilitator on prescribed transactions. TCS is generally a tax credit and is distinct from the final tax liability.

Tax withheld by the payer before making specified payments. For NRIs, TDS can arise on property sales, rent, interest and other Indian income, and the amount withheld may differ from the final tax liability.

A summarized view of information available in the Annual Information Statement. It can help taxpayers compare reported information with the figures used in an income-tax return.

An Income Tax Department platform used for TDS-related functions and records. Deductors and taxpayers may use TRACES for certificates, statements and reconciliation-related tasks.

Rules governing the pricing of transactions between associated enterprises. Cross-border related-party services, loans, royalties and other dealings may need to satisfy arm’s-length requirements and documentation rules.

A unique number generated by a Chartered Accountant for specified documents and certificates to help establish authenticity. Certain CA-certified tax and compliance documents may require UDIN.

An identification number associated with an overseas investment or foreign entity in the RBI reporting framework. It helps connect subsequent reporting and transactions to the relevant overseas investment record.

A commonly used FEMA route under which eligible NRI or PIO balances and specified asset proceeds may be remitted from India up to the prescribed aggregate annual ceiling, subject to conditions, tax compliance and bank documentation.

A legal document stating how a person wants assets to be dealt with after death. For NRIs with Indian assets, drafting should consider Indian succession rules, asset ownership, nominees and coordination with Wills in other countries.