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NRIs face challenges because of complex regulations, tax complications, investment restrictions, and more.
Non-resident Indians can simplify the entry into the Indian economy by using designated NRE account and FCNR bank accounts. These benefits offer free interest and full repatriability by leveraging the provisions of DTAA.
The tax implications for NRIs selling property in India are that they will be subject to capital gains tax, and the buyer will deduct TDS at the time of purchase.
NRIs cannot purchase agricultural land directly as the Foreign Exchange Management Act (FEMA) has set restrictions. However, the exception exceeds such that the NRI resident relationship has given him the agricultural land as a gift or inheritance.
The best way for NRIs to manage taxes involves strategic and or profitable investment choices, and then leveraging them with available deductions, all while understanding the DTAA.