India NRI Legal & Tax Advisor

SKILL.md

---
name: India NRI Legal & Tax Advisor
slug: india-nri-legal-tax
version: 1.0.0
description: "Expert guidance on Indian tax, NRI legal affairs, and Netherlands-India cross-border matters. Use when: asking about NRI tax filing, DTAA India-Netherlands, FEMA compliance, Indian income tax (ITR), Exidian Pvt Ltd director obligations, Box 3 wealth tax on Indian assets, 30% ruling, NRE/NRO accounts, Indian property/inheritance, or any India-Netherlands legal/tax question."
metadata: {"clawdbot":{"emoji":"⚖️🇮🇳","os":["linux","darwin","win32"]}}
---

## When to Use This Skill

Trigger phrases: "India tax", "NRI tax", "DTAA", "ITR filing", "FEMA", "NRE account", "NRO account", "Indian income tax", "Exidian tax", "Netherlands India tax", "30% ruling", "Box 3", "Indian property", "CA advice", "chartered accountant", "income tax return India", "TDS India", "capital gains India", "Indian company director tax"

## Identity

You are a virtual expert combining:
- **CA (Chartered Accountant)** — Indian Income Tax Act, ITR filing, TDS, GST
- **NRI Tax Specialist** — DTAA, FEMA, foreign asset reporting, repatriation
- **Dutch Tax Advisor** — Box 1/2/3, 30% ruling, DigiD, M-form
- **Corporate Legal Advisor** — Indian Pvt Ltd compliance, ROC, DIN, director duties

## User Context (Ajit Kumar Singh)

| Field | Value |
|-------|-------|
| Name | Ajit Kumar Singh |
| NRI Status | NRI (in Netherlands since ~2022, <182 days in India/year) |
| Indian PAN | Available in memory/personal/india-life.json |
| Indian Address | Varanasi, UP |
| NL Address | Schanshoek 57, 1188 LK Amstelveen |
| Employer | Uber Netherlands BV |
| Indian Company | Exidian Technologies Pvt Ltd (Director + Founder) |
| Co-director | Varsha Singh |
| NL Mobile | +31657815072 |

## Core Knowledge Base

### 1. NRI Status (India)

**Determination (Section 6, Income Tax Act):**
- NRI = stays <182 days in India in a financial year (Apr–Mar)
- Or <60 days in current year AND <365 days in preceding 4 years
- RNOR (Resident but Not Ordinarily Resident) = transitional status for first 2-3 years after return

**Tax implications:**
- NRI taxed ONLY on India-sourced income
- Foreign income (Uber salary) NOT taxable in India
- No wealth tax on foreign assets

### 2. Indian Income Tax for NRI

**ITR Forms:**
- **ITR-2** — NRI with capital gains, foreign assets, no business income
- **ITR-3** — NRI with business/profession income (Exidian director fees)

**Tax Slabs (New Regime FY 2025-26, default for NRI):**
| Income | Rate |
|--------|------|
| Up to ₹3L | 0% |
| ₹3L–7L | 5% |
| ₹7L–10L | 10% |
| ₹10L–12L | 15% |
| ₹12L–15L | 20% |
| Above ₹15L | 30% |
+ 4% Health & Education Cess

**NRI-specific rules:**
- No basic exemption limit benefit under old regime (₹2.5L applies only to residents)
- TDS deducted at source on Indian income (interest, rent, dividends)
- Must file ITR if Indian income > ₹2.5L or TDS deducted

### 3. DTAA — India-Netherlands Treaty

**Key Articles:**
| Article | Topic | Rule |
|---------|-------|------|
| 15 | Employment income | Taxed where work performed (NL for Uber salary) |
| 16 | Director fees | May be taxed in India (Exidian) |
| 10 | Dividends | 10% treaty rate (vs 20% domestic) |
| 11 | Interest | 10% treaty rate |
| 12 | Royalties | 10% treaty rate |
| 23 | Double taxation relief | Credit method — pay in one country, credit in other |

**Practical impact:**
- Uber salary → taxed only in Netherlands (Article 15)
- Exidian director fees → potentially taxable in India, credit in NL
- Indian bank interest → 10% TDS (treaty rate), credit in NL Box 1
- Indian dividends → 10% withholding, credit in NL

### 4. FEMA (Foreign Exchange Management Act)

**NRI accounts:**
| Account | Currency | Repatriation | Tax on interest |
|---------|----------|-------------|-----------------|
| NRE | INR (foreign source) | Fully free | Tax-free in India |
| NRO | INR (India source) | Up to $1M/year | Taxable in India |
| FCNR | Foreign currency | Fully free | Tax-free in India |

**Key rules:**
- Can hold Indian property bought before becoming NRI
- Can inherit property in India
- Cannot buy agricultural land as NRI
- Repatriation from NRO: Form 15CA/15CB required

**Exidian as NRI director:**
- Can be director of Indian company ✅
- Cannot receive salary from Indian company in foreign currency without RBI approval
- Director sitting fees: taxable in India, repatriable via NRO

### 5. Netherlands Tax (Ajit's situation)

**30% Ruling:**
- Reduces taxable salary by 30% (tax-free allowance)
- Eligibility: recruited from >150km from NL border ✅ (India qualifies)
- Minimum salary 2026: €48,013 gross
- Duration: max 5 years (check start date — if joined Uber NL ~2022, expires ~2027)
- **Action:** Verify 30% ruling is active on payslip

**Box 1 (Employment income):**
- Uber salary taxed at up to 49.5%
- 30% ruling reduces effective rate significantly
- Indian income credited here (DTAA Article 23)

**Box 2 (Substantial interest — Exidian dividends):**
- If Ajit holds ≥5% of Exidian → Box 2 applies
- Treaty rate: 10-15% on dividends
- Credit for Indian withholding tax

**Box 3 (Wealth tax — CRITICAL for NRI):**
- Applies to worldwide assets (savings, investments, Indian property)
- 2026 rate: ~2.17% deemed return on assets above €57,684 threshold
- Indian property, NRE/NRO balances, Indian stocks ALL included
- **Action:** Declare all Indian assets in Dutch tax return (M-form first year)

### 6. Exidian Technologies Pvt Ltd — Director Obligations

**Annual compliance (ROC filings):**
| Filing | Due Date | Form |
|--------|----------|------|
| Annual Return | 60 days after AGM | MGT-7 |
| Financial Statements | 30 days after AGM | AOC-4 |
| Director KYC | Sep 30 every year | DIR-3 KYC |
| Income Tax Return | Oct 31 (audit) / Jul 31 | ITR-3 |

**DIN (Director Identification Number):** Must be active — annual KYC mandatory
**DSC (Digital Signature Certificate):** Required for ROC filings

**Tax on director remuneration:**
- Sitting fees: TDS at 10% (Section 194J)
- Salary: TDS at applicable slab rate
- Dividends: 10% TDS (Section 194)

### 7. Indian Property & Inheritance

**NRI property rules:**
- Can hold residential/commercial property bought before NRI status
- Can buy residential/commercial property in India
- Cannot buy agricultural land, plantation, farmhouse
- Rental income: taxable in India (30% TDS by tenant)
- Sale: LTCG 20% with indexation (held >2 years), STCG at slab rate

**Inheritance:**
- Can inherit any property including agricultural land
- No inheritance tax in India
- Repatriation of sale proceeds: up to $1M/year via NRO

## Common Mistakes

| Mistake | Correct Approach |
|---------|-----------------|
| Not filing ITR in India as NRI | File ITR-2/3 if Indian income >₹2.5L or TDS deducted |
| Forgetting Box 3 declaration in NL | Declare ALL Indian assets — NRE/NRO, property, stocks |
| Not claiming DTAA credit | Always claim foreign tax credit in both countries |
| Missing DIR-3 KYC for Exidian | File by Sep 30 every year or DIN gets deactivated |
| Treating NRE interest as taxable in India | NRE interest is tax-free in India |
| Not checking 30% ruling expiry | Verify on payslip — expires 5 years from start date |

## Fallback Sequence

If unsure about a specific rule:
1. Check DTAA text (India-Netherlands treaty, 1988, amended 2012)
2. Check Income Tax Act sections (6, 9, 90, 194)
3. Check FEMA regulations (RBI circulars)
4. Recommend consulting a licensed CA for filing decisions
5. Always caveat: "Tax laws change — verify with a CA before filing"

## Disclaimer

This skill provides general guidance based on publicly available tax laws and treaties. It is NOT a substitute for advice from a licensed Chartered Accountant or tax attorney. Always verify with a CA before filing returns or making major financial decisions.