Introduction to Trust Creation & Society Registration

Starting a non-profit organization in India usually begins with Trust Creation or Society Registration. These structures are commonly used for charitable, educational, religious, cultural, and social welfare activities.

Choosing the right structure is essential for smooth compliance, fundraising, tax benefits, and long-term governance. This Saving Mantra guide explains the step-by-step process for Trust Creation & Society Registration in India, covering eligibility, documentation, registration steps, and post-registration compliance.

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Difference Between Trust and Society

Particulars	Trust	Society
Governing Law	Indian Trusts Act, 1882	Societies Registration Act, 1860
Minimum Members	2 Trustees	7 Members
Governing Body	Trustees	Managing Committee
Area of Operation	Usually State-specific	State or National
Registration Authority	Sub-Registrar	Registrar of Societies

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When to Choose a Trust or Society?

• Trust: Suitable for long-term asset holding, family-managed charities, religious institutions
• Society: Suitable for member-driven organizations, educational and social initiatives

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Step-by-Step Process for Trust Creation in India

Step 1: Decide Trust Name & Objectives

• Select a unique name
• Define clear charitable objectives
• Ensure objectives are non-profit in nature

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Step 2: Draft Trust Deed

The trust deed should include:

• Name and address of trust
• Objects and activities
• Details of trustees
• Powers and duties of trustees
• Utilization of funds
• Dissolution clause

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Step 3: Arrange Trustees & Property

• Minimum two trustees required
• Identify trust property (movable or immovable)
• Decide registered office address

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Step 4: Stamp Duty & Execution

• Pay applicable stamp duty (varies by state)
• Execute trust deed on non-judicial stamp paper
• Sign by settlor and trustees in presence of witnesses

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Step 5: Trust Registration

• Submit trust deed to local Sub-Registrar
• Complete biometric verification
• Obtain registered trust deed

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Step-by-Step Process for Society Registration in India

Step 1: Select Society Name

• Choose a unique name
• Avoid names prohibited under Emblems & Names Act
• Confirm name availability with Registrar

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Step 2: Form Governing Body

• Minimum 7 members required
• Appoint President, Secretary, Treasurer
• Decide registered office address

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Step 3: Draft MOA & Bye-laws

Documents must include:

• Name and objectives of society
• Member details
• Governing body structure
• Meeting procedures
• Fund utilization
• Dissolution clause

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Step 4: Prepare Registration Documents

• Address proof of registered office
• ID proof of members
• Affidavits and declarations
• Covering letter and application form

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Step 5: File Application with Registrar

• Submit application to Registrar of Societies
• Pay government registration fees
• Respond to queries, if any

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Step 6: Certificate of Registration

Once approved:

• Society Registration Certificate issued
• Society becomes a legal entity

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Time Required for Registration

• Trust Registration: 7–15 working days
• Society Registration: 15–30 working days

Timelines may vary by state.

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Post-Registration Compliances

After registration:

• Apply for PAN
• Open bank account
• Maintain books of accounts
• Apply for 12AB and 80G (if required)
• File annual returns as applicable

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How Saving Mantra Helps

Saving Mantra offers end-to-end services for Trust Creation & Society Registration, including:

• Structure selection advisory
• Drafting deeds, MOA & bye-laws
• Registration filing & follow-ups
• Post-registration compliance support
• Tax and NGO advisory services

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Disclaimer

This article is for informational purposes only and does not constitute legal or professional advice. Registration requirements, stamp duty, and procedures vary by state. Readers are advised to consult qualified professionals before proceeding. Saving Mantra shall not be responsible for decisions taken based on this information.

Saving Mantra Blog: Step-by-Step Process for Obtaining Succession Certificate for NRI in India

When a person passes away without a nominee or Will for movable financial assets in India, their legal heirs may require a Succession Certificate to collect, transfer, or manage the financial assets. For Non-Resident Indians (NRIs), this becomes essential to access bank accounts, fixed deposits, provident fund, shares, bonds, debentures, and other debts owed to the deceased.

This Saving Mantra guide explains the purpose, eligibility, documents, legal procedure, court fees, timelines, and common mistakes, helping NRIs handle the process smoothly.

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⭐ What is a Succession Certificate?

A Succession Certificate is a legal document issued by an Indian civil court that grants the rightful heir(s) authority to:

✔ Claim financial assets of the deceased
✔ Recover debts and securities
✔ Operate and close bank accounts
✔ Transfer shares & bonds
✔ Collect provident fund & insurance amounts (in specific cases)

It applies mainly to movable assets.

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⭐ When Do NRIs Need a Succession Certificate?

An NRI heir may need a Succession Certificate when:

• The deceased has bank accounts or FDs in India
• Shares, bonds, or mutual funds exist without nomination
• Insurance or PF lacks clear beneficiary details
• Government dues or arrears are pending
• There is no Will, or Will is contested

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⭐ Who Can Apply for a Succession Certificate?

Eligible applicants include:

• Spouse
• Children
• Parents
• Siblings (in absence of above)

If NRI is residing outside India, they can apply through:

✔ Power of Attorney (PoA) holder in India, or
✔ Direct court filing when physically present

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⭐ Step-by-Step Process for Obtaining Succession Certificate for NRI in India

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Step 1: Collect Required Documents

Key documents include:

✔ Death Certificate of deceased
✔ Legal heir details (Passport, Aadhaar, Overseas Address proof)
✔ Proof of relationship (Birth/Marriage certificate)
✔ Asset details (Account statements, share certificates, PF records)
✔ ID & Address of applicant (Indian or foreign)
✔ NRI status proof (Passport, OCI/PIO, Visa)

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Step 2: Engage an Indian Advocate

Succession cases must be filed in Indian courts. An NRI should appoint a lawyer to:

• Draft the petition
• Prepare PoA (if required)
• Handle court filings and hearings

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Step 3: Execute a Power of Attorney (If NRI is Abroad)

If applying from abroad, process includes:

1. Advocate drafts PoA
2. NRI signs in presence of:
   • Indian Embassy/Consulate, or
   • Foreign Notary + Apostille
3. PoA is couriered to India and adjudicated before use

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Step 4: Filing of Succession Certificate Petition in Court

The advocate files the petition in:

✔ District Court where deceased last resided, or
✔ Where the property/financial institution is located

Petition must specify:

• Date & place of death
• Family details & legal heirs
• List of assets & liabilities
• Reason for seeking certificate

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Step 5: Court Issues Notices & Newspaper Publication

After filing, the Court:

✔ Issues notice to legal heirs
✔ Orders newspaper publication inviting objections from the public

If no objections are received during the notice period, case proceeds uncontested.

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Step 6: Evidence & Verification Stage

Court verifies:

• Heirship details
• Death certificate authenticity
• Asset ownership documents
• NRI relationship proof

Heirs may testify physically or through:

✔ Video conferencing, or
✔ PoA holder, subject to court approval

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Step 7: Grant of Succession Certificate

Once satisfied, Court issues the:

✔ Succession Certificate specifying asset values and scope

This certificate empowers the NRI/PoA holder to legally collect movable assets.

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⭐ Documents Commonly Covered Under Succession Certificate

NRIs can claim the following using the certificate:

✔ Savings/Current accounts
✔ Fixed Deposits (FDs)
✔ Recurring Deposits (RDs)
✔ Shares & Mutual Funds
✔ Debentures & Bonds
✔ Provident Fund (in specific cases)
✔ Government dues & arrears
✔ Post Office Deposits

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⭐ Court Fees & Stamp Duty for Succession Certificate

Court fee depends on state laws:

• Some states charge percentage of asset value
• Others charge fixed stamp duty
• Approx range: 0.5% – 6% depending on state & asset value

Example:

• In Delhi: ~2% of asset value capped at a maximum
• In Maharashtra: percentage-based on estate value

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⭐ Timeline for Obtaining Succession Certificate

Typical timelines:

Case Type	Duration
Uncontested	4–9 months
Contested	1–3+ years

Processing time varies due to notices, evidence, and court workload.

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⭐ Succession Certificate vs Probate vs Legal Heir Certificate

Feature	Succession Certificate	Probate	Legal Heir Certificate
Applies To	Movable Assets	Wills	Generic heir recognition
Requires Will?	No	Yes	No
Issued By	Civil Court	High/District Court	Local Revenue Authority
For Shares/FDs?	Yes	If Will exists	No

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⭐ Common Mistakes NRIs Should Avoid

❌ Not collecting financial asset details early
❌ No PoA execution for Indian representation
❌ Assuming nomination replaces legal right
❌ Relying on Will alone for bank assets
❌ Not publishing details during notice period
❌ Missing deadlines for court responses

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⭐ Practical Tips for NRIs

✔ Keep bank & investment statements updated
✔ Use consular attestation for PoA abroad
✔ Maintain birth/marriage certificates as heir proof
✔ Consult NRI succession experts for complex estates

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Disclaimer

This blog is for informational purposes only and does not constitute legal advice. Succession laws, court fees, and procedures differ by state and may change. Readers should consult a qualified advocate or authority before proceeding.

Saving Mantra Blog: Step-by-Step Process for Obtaining Probate for NRI in India

When a Non-Resident Indian (NRI) inherits assets in India through a Will, they may need a Probate to legally establish the Will’s authenticity and gain authority to manage, transfer, or sell assets. Probate becomes especially important for immovable property, bank accounts, and securities located in India.

This Saving Mantra guide explains the eligibility, documents, court process, timelines, and common mistakes, to help NRIs navigate the legal system smoothly.

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⭐ What is Probate in India?

Probate is a legal certificate issued by an Indian court confirming that:

✔ The Will is genuine
✔ The executor named can administer the estate
✔ The Will has legal effect

It is governed under the Indian Succession Act, 1925 and is mandatory in certain jurisdictions and situations.

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⭐ When is Probate Required for NRIs?

Probate may be required when:

• The deceased owned immovable property (house/land) in India
• Banks demand probate for releasing funds
• Registrar requires probate for property transfer
• Shares/mutual funds need transmission
• There are disputes among heirs
• Will was executed in cities where probate is compulsory such as:
  Mumbai, Chennai, and Kolkata (Presidency Towns)

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⭐ Who Can Apply for Probate?

• The Executor named in the Will
• If no executor is named, a Legal Heir may apply for Letters of Administration

NRIs can apply through:

• Power of Attorney (PoA) Holder in India, or
• Direct appearance (limited stay in India)

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⭐ Step-by-Step Process for Obtaining Probate for NRI in India

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Step 1: Collect Required Documents

Basic documents include:

✔ Original Will
✔ Death Certificate of the testator
✔ Identity proof of executor/legal heirs
✔ Proof of assets (property papers, bank details, shares, etc.)
✔ Relationship proof (Passport, Birth/Marriage certificate)
✔ Address proof of executor/heirs
✔ NRI status proof (Passport + Visa + OCI/PIO if applicable)

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Step 2: Engage an Indian Advocate

NRIs should appoint an Indian advocate experienced in:

• Probate matters
• Family succession
• NRI property laws

If NRI is overseas, lawyer will prepare PoA for local execution.

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Step 3: Execute and Attest a Power of Attorney (If Abroad)

If applying from abroad:

1. Lawyer drafts PoA
2. NRI signs before:
   • Indian Consulate/Embassy, or
   • Notary Public + Apostille (Hague countries)
3. Send attested PoA to India
4. PoA is adjudicated in India (if required)

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Step 4: Filing of Probate Petition in Indian Court

The advocate files a Probate Petition in the District or High Court having jurisdiction.

Petition includes:

• Copy of Will
• Death certificate
• Executor details
• List of legal heirs
• Asset statements

Court fees apply (vary by State & asset value).

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Step 5: Issue of Citation & Notices

Court issues:

✔ Citations to legal heirs
✔ Public notice in a newspaper inviting objections

If no objections are filed within specified time, the case proceeds uncontested.

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Step 6: Court Hearings & Evidence Submission

Court verifies:

• Validity of Will
• Capacity and signature of testator
• Witness testimony (if required)

Witnesses may appear physically or via video conferencing, depending on court permissions.

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Step 7: Probate Order Issuance

If court is satisfied, it issues:

✔ Probate Certificate with the sealed Will
✔ Authority to executor to manage assets

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Step 8: Asset Transfer & Execution of Estate

Once probate is granted:

• Property can be transferred in the name of heirs
• Bank accounts/fixed deposits can be closed
• Shares & mutual funds can be transmitted
• Property can be sold if desired

Executor must distribute assets as per Will terms.

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⭐ Key Documents Required for Probate (NRI Checklist)

• Original Will
• Death Certificate
• Passport of deceased & heirs
• NRI Passport & Visa/OCI
• Address proof (India/abroad)
• POA (if applicable)
• Property & financial asset proofs
• No Objection Certificates (optional for smooth process)

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⭐ Timeline for Obtaining Probate

Timelines depend on objections & court workload:

Case Type	Approx Timeline
Uncontested probate	6–12 months
Contested probate	1–3+ years

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⭐ Probate Court Fees in India

State-specific court fees applicable:

• Some states charge fixed fees (nominal)
• Others charge percentage on asset value
• High-value property can trigger higher stamp duty

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⭐ Common Mistakes NRIs Should Avoid

❌ Not keeping the original Will
❌ Will without signatures or witnesses
❌ No PoA for Indian representation
❌ Assuming probate isn’t needed in India
❌ Not updating NRI contact and passport details
❌ Expecting asset transfer without court order

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⭐ Can NRIs Avoid Probate?

In some cases, yes — by using alternatives such as:

✔ Joint ownership with survivorship clause
✔ Nomination in bank accounts & securities
✔ Living trust (advanced planning)

However, for Will-based transfers, probate may still be required.

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Disclaimer

This blog is for informational purposes only and does not constitute legal advice. Probate laws, court fees, and procedures vary by state and may change. Readers should verify details with a qualified lawyer or competent authority before taking action.

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Saving Mantra Blog: Step-by-Step Process for Digital Signature (Class 3) for Foreign Citizens & NRI in India

Digital Signature Certificates (DSCs) are required for many Indian e-governance, tax, and legal processes. For Non-Resident Indians (NRIs) and Foreign Citizens, a Class 3 DSC is essential for activities like MCA filings, tax submissions, DGFT transactions, tenders, and company registrations in India.

This Saving Mantra guide provides a complete step-by-step process, including requirements, documentation, verification, approvals, timelines, and compliance tips.

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⭐ What is a Class 3 Digital Signature Certificate?

A Class 3 DSC is the highest-level Digital Signature used for authentication in India. It is issued by Government Licensed Certifying Authorities (CAs) and stored on a USB Crypto Token for security.

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⭐ Who Needs a Class 3 DSC?

NRIs or Foreign Citizens require a DSC if they:

• Are Directors/Authorized Signatories of Indian firms
• Need to file MCA (ROC) forms
• File Income Tax / TDS returns
• Participate in e-tenders or e-auctions
• Use DGFT for export-import activities
• File documents with IEPF, GST, RERA, etc.
• Need secure-signing for Indian legal contracts

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⭐ Step-by-Step Process for NRI & Foreign Citizens to Get Class 3 DSC

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Step 1: Choose the Correct DSC Category

Select based on your role:

• Individual DSC — For personal or professional filings
• Organizational DSC — For company/firm authorization

Validity options:

• 2 years (commonly used)
• 3 years

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Step 2: Select a Certifying Authority (CA)

Licensed Indian CAs include:

• eMudhra
• Capricorn
• Sify
• VSign
• Pantasign
• IDSign

NRIs & Foreign Citizens must choose one that supports overseas issuance.

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Step 3: Gather Required Documents

A) Identity Proof (Any One)

• Passport (mandatory if NRI/foreigner)
• OCI/PIO Card (if applicable)

B) Address Proof (Any One)

• Passport (with address)
• Foreign utility bill (not older than 3 months)
• Foreign bank statement
• Residence permit / PR card
• NRE/NRO Bank Statement (for NRIs)

C) Additional for Organizational DSC

• Board Resolution/Authorization Letter
• Company Registration Certificate
• PAN & GST (if applicable)

D) Photograph & Signatures

• Passport-size photo
• Specimen signature

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Step 4: Complete DSC Online Application Form

These details are required:

• Full name as per passport
• Email ID
• Country of residence
• Mobile number with country code
• Passport number
• Date of birth
• Role (Individual/Director/Authorized Signatory)

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Step 5: Perform Video / Biometric / OTP Verification

Verification options vary by CA:

✔ Video KYC Verification
Applicant must:

• Show passport to camera
• Read verification code
• Confirm basic details

✔ Biometric Authentication (optional)
Using fingerprint scanner (rare for foreigners)

✔ Email & Mobile OTP
For additional authentication

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Step 6: Submit Documents for Attestation

Document attestation requirements depend on jurisdiction:

For Foreign Citizens

Documents must be:

• Notarized, or
• Consular attested, or
• Apostilled (Hague Convention countries)

For NRIs

Documents should be:

• Notarized in India, or
• Consular attested, or
• Attested by Indian Bank (NRE/NRO)

Check with CA as requirements may vary country-wise.

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Step 7: Pay DSC Fees

Approximate cost:

• ₹2,500 – ₹7,000 for Individual DSC (2 years)
• ₹3,000 – ₹10,000 for Organizational DSC (2 years)

Charges vary by CA, token, and validity.

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Step 8: Issuance of Digital Signature & Token Delivery

Once verified:

✔ DSC Certificate Issued: 1–5 days
✔ Hardware Token Dispatched: 5–15 days (international courier)

Token examples:

• Aladdin Token
• Epki Token
• WatchData Token

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Step 9: Install & Use DSC

Requirements:

• USB crypto token
• DSC management driver
• Browser configuration (for MCA & DGFT portals)

Supported browsers:

• Chrome
• Firefox
• Edge (with plugins)
• Internet Explorer (for legacy MCA)

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⭐ Common Use Cases for NRIs & Foreign Citizens

Use Case	Portal
Company Incorporation	MCA/ROC
Director KYC (DIR-3 KYC)	MCA
Tax Filing	Income Tax Portal
Tenders / Auctions	GeM, CPPP
Import-Export Filings	DGFT
Legal e-contracts	eSign/Contract Tools
Asset Transfers	IEPF, RERA

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⭐ Common Mistakes to Avoid

❌ Using un-attested foreign documents
❌ Mismatch between passport and application
❌ No country code in mobile number
❌ Using DSC without configuring browser drivers
❌ Selecting wrong DSC category (Org vs Individual)

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⭐ Benefits of Class 3 DSC for NRI/Foreign Citizens

✔ Legally valid under IT Act
✔ Accepted by all major Indian portals
✔ Secure authentication for filings
✔ Faster compliance processing
✔ Required for cross-border business setup in India

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Disclaimer

This blog is for informational purposes only and does not constitute legal or tax advice. DSC rules, documentation, and pricing may change. Readers should verify details with an authorized Certifying Authority or consult a qualified professional before proceeding.

Introduction to LEI Registration

A Legal Entity Identifier (LEI) is a 20-character global identification code used to uniquely identify legal entities participating in financial transactions. LEI registration has become mandatory for several financial and regulatory transactions in India as per directions of the Reserve Bank of India.

This Saving Mantra guide explains the step-by-step process for LEI registration in India, covering applicability, documentation, timelines, and renewal requirements for businesses, banks, NBFCs, corporates, trusts, and institutions.

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What Is LEI?

LEI is a globally recognized identifier issued under the framework of the Global Legal Entity Identifier Foundation (GLEIF).
In India, LEIs are issued through authorized Local Operating Units such as Legal Entity Identifier India Ltd (LEIL).

The LEI helps regulators and counterparties:

• Identify entities accurately
• Improve transparency in financial markets
• Reduce systemic financial risks

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Who Needs LEI Registration in India?

LEI registration is mandatory or required for:

• Companies, LLPs, and firms
• Banks, NBFCs, and financial institutions
• Entities involved in large-value transactions
• Participants in RBI-regulated payment systems
• Borrowers above specified exposure thresholds
• Entities dealing in derivatives, bonds, or money markets

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Benefits of LEI Registration

• Mandatory compliance with RBI regulations
• Smooth banking and financial transactions
• Global recognition of entity identity
• Reduced risk of transaction rejections
• Improved credibility with banks and regulators

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Step-by-Step Process for LEI Registration in India

Step 1: Check LEI Applicability

Confirm whether LEI is required based on:

• Nature of business
• Transaction type
• RBI circular applicability
• Banking or market participation

Banks usually notify customers if LEI is mandatory.

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Step 2: Identify Authorized LEI Issuer

In India, LEI registration is done through:

• LEIL (Legal Entity Identifier India Ltd)
  Other global issuers may also be used if permitted.

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Step 3: Prepare Required Documents

Documents generally required include:

• Certificate of incorporation / registration
• PAN of the entity
• Address proof
• Details of directors / partners / trustees
• Authorization letter
• Latest audited financial statements
• Bank account details

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Step 4: Online Application Submission

• Visit LEI issuing authority portal
• Fill entity details (legal name, address, structure)
• Upload required documents
• Verify parent or ownership information (if applicable)

Accuracy is critical to avoid rejection or delays.

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Step 5: Payment of LEI Fees

• Pay applicable registration fee online
• Fees vary based on validity and issuer
• Lower fees for renewals compared to fresh registration

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Step 6: Verification & Validation

• Issuing authority validates documents
• Cross-checks legal and financial data
• May seek clarifications or corrections

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Step 7: Issuance of LEI Code

Once approved:

• 20-character LEI code is issued
• LEI details are published in global LEI database
• Entity can use LEI for all applicable transactions

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Validity & Renewal of LEI

• LEI validity: 1 year
• Annual renewal is mandatory
• Non-renewal may lead to lapsed LEI
• Lapsed LEI can result in transaction blocks by banks

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Time Required for LEI Registration

• Standard processing time: 1 to 5 working days
• Faster if documents are complete and accurate

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Common Reasons for LEI Application Rejection

• Mismatch in entity details
• Incorrect ownership information
• Incomplete documentation
• Authorization issues
• Non-payment or delayed payment

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LEI Compliance & RBI Linkage

LEI is linked with:

• Large-value payment transactions
• RTGS / NEFT / derivative transactions
• Credit exposure reporting
• Regulatory reporting requirements

Non-compliance may lead to transaction denial or regulatory issues.

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How Saving Mantra Helps

Saving Mantra provides end-to-end LEI registration and renewal services, including:

• Applicability assessment
• Documentation support
• Online application filing
• Follow-ups and corrections
• Annual LEI renewal reminders

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Disclaimer

This article is for informational purposes only and does not constitute legal, financial, or regulatory advice. LEI applicability, fees, and RBI requirements may change from time to time. Readers are advised to consult qualified professionals before proceeding. Saving Mantra shall not be responsible for actions taken based on this information.

Saving Mantra Blog: Step-by-Step Process for Permanent Account Number (PAN) for NRI in India

A Permanent Account Number (PAN) is essential for Non-Resident Indians (NRIs) if they earn income in India or need to conduct financial transactions. Whether you want to invest, buy property, file ITR, or avoid higher TDS, having an NRI PAN simplifies compliance and reduces tax burdens.

This Saving Mantra guide explains the complete step-by-step process, documents required, fees, common mistakes, and expert tips to ensure smooth approval.

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⭐ What is an NRI PAN?

An NRI PAN is a 10-digit alphanumeric number issued by the Income Tax Department of India. NRIs must apply under the Foreign Citizen / NRI category using Form 49AA.

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⭐ When Does an NRI Need PAN?

You need a PAN in India if:

• You earn rental income in India
• You invest in mutual funds, equity, NPS, or fixed deposits
• You purchase or sell immovable property
• You receive payments subject to TDS
• You want to avoid higher TDS @20% due to no PAN
• You want to file an Income Tax Return (ITR)

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📌 Step-by-Step Process to Apply for PAN for NRI in India

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Step 1: Determine the Correct Application Category

NRIs should choose:

✔ Form 49AA — For Foreign Citizens/NRI Category

You can apply through:

• NSDL (Protean) portal
• UTIITSL portal

Both are government-authorized.

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Step 2: Keep Required Documents Ready

The documentation depends on the NRI’s residential status and nationality.

A) Required Identity Proof (Any One)

• Copy of Passport (mandatory for NRIs)
• OCI / PIO Card (if applicable)

B) Proof of Address (Any One)

• Passport (with overseas address)
• Overseas bank statement
• NRE/NRO account statement
• Residence permit from foreign country
• Utility bills (not older than 3 months)

C) Photographs

• Two recent passport-size photos (white background preferred)

D) Additional for Foreign Citizens

If not holding Indian citizenship, you also need:

• Applicant’s signature on the form
• Apostilled / Consular attested documents (if required by country)

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Step 3: Start the Online PAN Application

1. Visit the NSDL/Protean or UTIITSL website
2. Select “PAN for Foreign Citizens” → Form 49AA
3. Fill in the details accurately:

• Full name
• Email ID
• Foreign address
• Indian communication address (if applicable)
• Date of birth
• Father’s name
• Passport number

(Ensure spelling matches exactly as per passport.)

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Step 4: Upload Documents

Upload scanned copies of:

• Passport
• Overseas address proof
• Photograph
• Signature specimen

Recommended format: JPG / JPEG / PDF
File size: As per portal guidelines

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Step 5: Pay PAN Application Fees

Fee depends on the communication address:

✔ For Overseas Address:

₹1,039 approx. (varies slightly)

✔ For Indian Address:

₹72–₹110

Payment modes available:

• Credit card
• International card
• Debit card
• Net banking
• Demand Draft (overseas applicants only)

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Step 6: Submit and Save the Acknowledgment

After successful submission:

• Download 15-digit acknowledgment number
• Print the acknowledgment form
• Paste photographs
• Sign in the designated box

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Step 7: Courier Documents to NSDL/UTIITSL (If Required)

Some countries require physical documents to be couriered.

Courier to:
Protean eGov Technologies Limited (NSDL) or UTIITSL PAN processing center.

(Address mentioned on acknowledgment receipt.)

Send within 15 days of online application.

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Step 8: Track PAN Application Status

You can track status on:

• NSDL/Protean PAN tracking page
• UTIITSL tracking page

Use your acknowledgment number.

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Step 9: Receive Your PAN Card

Timeline:

• Digital e-PAN: within 4–7 working days
• Physical PAN card (international courier): 10–20 working days

E-PAN is valid for all Indian financial transactions.

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⭐ Tips to Ensure Fast Approval

• Use passport as both ID and address proof for simplicity
• Ensure signature matches passport signature
• Upload clear scanned documents (no blur or shadows)
• Avoid giving both Indian & foreign address (choose one)
• Do not use Indian phone number if overseas
• Do not leave mandatory fields blank

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⭐ Common Mistakes NRIs Should Avoid

❌ Uploading wrong-sized photos
❌ Mismatch between passport & PAN form details
❌ Incorrect country code in the phone number
❌ Using Indian address without valid Indian proof
❌ Submitting expired documents

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📌 Why NRIs Should Not Delay Getting PAN

• Avoids high TDS on investments & property income
• Required for sale/purchase of real estate
• Required for repatriation of funds
• Makes compliance with NRI tax rules easier
• Enables seamless investment in Indian markets

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Disclaimer

This blog is for informational purposes only and should not be considered professional tax or legal advice. Tax rules and documentation requirements may change. Please consult a qualified professional or official government website before making financial decisions.

Saving Mantra Blog: Step-by-Step Process for Non-Resident Indian (NRI) Tax Returns Filing in India

Many Non-Resident Indians (NRIs) earn income in India through investments, rent, capital gains, interest, or business activities. If such income is taxable, NRIs must file an Income Tax Return (ITR) in India, even though they live abroad. Filing helps avoid penalties, claim refunds, and benefit from Double Taxation Avoidance Agreements (DTAA).

Below is a detailed, structured, and beginner-friendly guide.

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🌍 1. Determine NRI Residential Status Under Income Tax Act

Tax filing depends on your residential status, not passport or visa.

Under Section 6 of Income Tax Act, NRI status applies if:

• You stayed in India less than 182 days in a financial year, or
• You stayed in India less than 60 days in a year and less than 365 days in preceding 4 years (subject to exceptions)

Important: FEMA citizenship rules are separate and not relevant for tax residential status.

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💻 2. Identify Income Taxable in India for NRIs

NRIs are taxed only on income earned or received in India, such as:

• Rental income from property
• Capital gains on sale of property/shares/mutual funds
• Interest from NRO account
• Business or professional income in India
• Dividend income from Indian companies

Not taxable for NRIs:

• Interest from NRE & FCNR(B) accounts (exempt under Section 10(4))
• Foreign income earned outside India

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🧾 3. Collect Required Documents

Before filing, gather:

✔ Personal Details

• PAN
• Passport (for days calculation)
• Address & contact details
• Bank information

✔ Income Proofs

• Rent agreements
• Capital gains statements
• Interest certificates
• Dividend statements
• Salary slips (if Indian employer)

✔ Tax Deduction Proofs

• TDS certificates (Form 16 / 16A)
• Form 26AS (tax credit view)
• AIS/TIS (Annual Information Statement)

✔ Foreign Tax Credit (FTC) (if applicable)

• Tax paid proofs abroad
• Form 67 filing details

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🧮 4. Choose Correct ITR Form for NRI

Most common forms for NRIs:

NRI Income Type	Applicable Form
Salary, One House Property, Other Income	ITR-2
Capital Gains	ITR-2
Business/Professional	ITR-3
Only passive income (interest, dividend)	ITR-2

NRIs cannot file ITR-1 (Sahaj).

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📊 5. Compute Total Taxable Income

Income heads applicable for NRIs:

1. Income from house property
2. Income from business/profession (if applicable)
3. Capital gains (property, equity, mutual funds)
4. Income from other sources (interest, dividends)

Deductions allowed under:

• Section 80C (LIC, ELSS, PF, PPF*)
• Section 80D (Health Insurance)
• Section 80G (Donations)
• Section 24(b) (Interest on home loan)

*Note: PPF contributions allowed only for resident contributors in most cases.

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📉 6. Apply DTAA Benefits (If Applicable)

To avoid double taxation, India has DTAA treaties with ~90+ countries.

DTAA benefits may allow:

• Lower TDS rates
• Tax credits
• Exemptions on specific income types

For claiming FTC (Foreign Tax Credit), file:

• Form 67 before filing ITR
• Attach tax payment proof abroad

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💸 7. Pay Additional Tax (If Required)

If TDS deducted is less than actual tax liability:
✔ Pay self-assessment tax via Challan 280 on Income Tax portal

If TDS > tax, refund will be issued to NRI’s NRO account.

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📝 8. File the ITR Online

Steps:

1. Log in to Income Tax e-filing portal
2. Select relevant ITR form
3. Pre-fill using Form 26AS, AIS, TIS
4. Declare foreign assets (Schedule FA) if resident only
5. Validate & submit

NRIs with foreign bank accounts can verify through:

• Aadhaar OTP (if linked)
• Net banking
• Digital Signature (DSC)

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🧾 9. Verification After Filing

ITR must be verified within 30 days via:
✔ Net banking
✔ Aadhaar OTP
✔ DSC

If not verified, ITR becomes invalid.

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💰 10. Track Refunds (If Any)

Refunds are processed by CPC Bengaluru and credited to NRO account.

Track status via:

• Income Tax Portal
• NSDL Refund Status portal

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📅 Key Due Dates for NRI Tax Filing

• Individual NRI without audit: 31 July
• If audit applicable: 31 October
• Revised Return: 31 December of AY

Late filing attracts:

• Late fees under Section 234F
• Loss of carry-forward benefits
• Interest penalties

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❗ Common Mistakes Made by NRIs

❌ Assuming foreign income taxable in India
❌ Filing wrong ITR form
❌ Ignoring DTAA
❌ Not reporting capital gains
❌ Not filing Form 67 for foreign tax credit
❌ Not reconciling 26AS & AIS

Fixing these early prevents notices.

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Conclusion

Filing Income Tax Returns for NRIs is a structured process involving:

• Determining residential status
• Identifying taxable India-sourced income
• Choosing correct ITR form
• Applying DTAA
• Filing and verification

Even if TDS is deducted, filing ITR helps claim refunds and ensures compliance.

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Disclaimer

This blog is for information purposes only and does not constitute tax, legal, or financial advice. Income tax laws, DTAA treaties, ITR forms, and filing due dates may change over time. Please consult qualified tax professionals and verify current regulations before making any decisions.

Introduction to 80G Renewal

Registration under Section 80G of the Income Tax Act, 1961 allows donors to claim tax deductions on donations made to eligible NGOs. To continue offering this benefit, organizations must renew their 80G registration within the prescribed timeline.

This Saving Mantra guide explains the step-by-step process for 80G renewal in India, ensuring uninterrupted donor benefits and full compliance.

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What Is 80G Renewal?

80G renewal refers to:

• Renewal of regular 80G approval
• Conversion of provisional 80G to regular approval

Upon renewal:

• A new 80G certificate is issued
• Validity is generally 5 years
• Donors remain eligible for tax deductions

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Who Must Apply for 80G Renewal?

80G renewal is mandatory for:

• Charitable Trusts
• Registered Societies
• Section 8 Companies
• NGOs holding provisional or expiring 80G approval

Non-renewal may result in loss of donor tax benefits.

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Benefits of Timely 80G Renewal

• Continued donor tax deduction eligibility
• Increased donor trust and funding
• Compliance with Income Tax regulations
• Eligibility for CSR and institutional grants

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Eligibility Criteria for 80G Renewal

To qualify for renewal, the NGO must:

• Hold valid 12AB registration
• Carry out genuine charitable activities
• Maintain proper books of accounts
• File income tax returns regularly
• Comply with donation reporting requirements

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Step-by-Step Process for 80G Renewal in India

Step 1: Check Existing 80G Validity

Review:

• Expiry date of 80G certificate
• Type (provisional or regular)
• Compliance history

This helps determine renewal timelines.

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Step 2: Prepare Required Documents

Documents commonly required:

• Existing 80G certificate
• 12AB registration certificate
• NGO registration certificate
• Trust deed / MOA / Bye-laws
• PAN of NGO
• Activity report
• Audited financial statements
• Donor and donation details

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Step 3: File Online Application (Form 10AB)

• Login to Income Tax e-filing portal
• Select Form 10AB for 80G renewal
• Enter organizational and activity details
• Upload supporting documents
• Submit using DSC or EVC

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Step 4: Verification & Clarifications

The Income Tax Department may:

• Request clarifications
• Ask for additional documents
• Examine donation utilization

Timely response is critical.

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Step 5: Grant of Renewed 80G Approval

Once satisfied:

• Renewed 80G certificate is issued
• Validity: 5 years
• Approval number updated

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Time Limit for 80G Renewal

• Application must be filed at least 6 months before expiry
• Processing time: 1 to 3 months

Late filing can cause temporary lapse of donor benefits.

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Post-Renewal Compliance Obligations

After renewal, NGOs must:

• Issue donation receipts with approval details
• File Form 10BD annually
• Issue Form 10BE to donors
• Maintain proper accounts and records

Non-compliance may lead to cancellation of 80G approval.

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Common Reasons for 80G Renewal Rejection

• Non-genuine charitable activities
• Incomplete or inaccurate documents
• Non-compliance with reporting requirements
• Misuse of donation funds
• Irregular income tax filings

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How Saving Mantra Helps NGOs

Saving Mantra offers complete 80G renewal services, including:

• Eligibility and compliance review
• Documentation and application support
• Form 10AB filing
• Handling income tax notices
• Ongoing NGO compliance advisory

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Disclaimer

This article is for informational purposes only and does not constitute legal or tax advice. Income tax laws and procedures are subject to change. Readers are advised to consult qualified professionals before filing 80G renewal applications. Saving Mantra shall not be responsible for decisions taken based on this content.

🧭 1. Understand Eligibility & Investment Routes

NRIs/OCIs can invest or set up business in India through:

✔ Automatic Route

No prior approval from RBI required for most sectors including:

• IT & Tech
• Manufacturing
• E-commerce marketplace
• Trading
• Services

✔ Approval Route

Government approval needed for sectors like:

• Defense
• Media
• Satellite
• Telecom (partial)

Check sector-specific FDI limits before planning.

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🏢 2. Choose the Suitable Business Entity

Common structures for NRI entrepreneurs:

✔ Private Limited Company

• Most preferred
• Limited liability
• Easy fundraising
• 1 Resident Director mandatory

✔ LLP (Limited Liability Partnership)

• Flexible structure
• Limited compliance
• Allowed for service sectors

✔ Subsidiary of Foreign Company

• Ideal for expansions
• 100% FDI in many sectors
• Treated as Indian company for taxation

✔ Branch Office / Liaison Office

• Requires RBI approval
• Limited activities permitted

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📜 3. Obtain Digital Signature (DSC) & DIN

For company/LLP incorporation:

• Directors require DSC for digital filings
• Directors require DIN (Director Identification Number)

Documents needed:

• Passport
• Overseas address proof
• Photo
• Email & phone

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🧾 4. Register Entity with MCA (Ministry of Corporate Affairs)

Steps:

1. Reserve company name (SPICe+ Part A)
2. Draft MOA & AOA
3. Submit incorporation forms (SPICe+ Part B)
4. Apply for PAN & TAN
5. Obtain Certificate of Incorporation

Processing time: 7–15 working days

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💰 5. Plan Capital Investment & FDI Compliance

Under FEMA, foreign funds coming from NRI/OCI qualify as FDI.

Requirements:

• Funds must come from NRE/FCNR(B) or foreign bank account
• Valuation certificate (if required)
• Filing of FC-GPR form after share allotment
• Reporting to AD Bank + RBI

Investment instruments include:

• Equity shares
• Compulsorily Convertible Debentures (CCDs)
• Compulsorily Convertible Preference Shares (CCPS)

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🏦 6. Open Bank Accounts

After incorporation, the company must open:

• Current Account for operations

For capital infusion:

• FDI remittance must come through NRE/FCNR(B)/Foreign bank account
• Bank issues FIRC & KYC report (mandatory for FC-GPR filing)

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📑 7. Apply for Mandatory Registrations

Depending on business nature:

✔ GST Registration (if turnover > threshold or inter-state)
✔ Professional Tax (in applicable states)
✔ EPF/ESIC (when employees exceed limits)
✔ Import Export Code (IEC) for export/import
✔ Startup India Recognition (optional)

These enable legal operations and tax compliance.

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💼 8. Setup Accounting, Tax & Audit Structure

NRIs must plan:

• TDS compliance
• GST filings
• Transfer pricing (if foreign group involved)
• Statutory audit
• ROC filings

Corporate taxes apply as per Indian rules:

• Domestic company tax rate: 22%–25% approx.
• MAT may apply for certain entities

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🚀 9. Operational Setup & Team Hiring

NRIs must consider:

• HR compliance
• Payroll setup
• Vendor contracts
• Tech infrastructure
• Data compliance (especially IT startups)

Certain roles like director/employee may require appropriate visas for foreign nationals.

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🌍 10. Repatriation & Exit Planning

NRIs may repatriate profits subject to:

• Taxes paid in India
• Board declaration
• Compliance reporting

For repatriation:

• File Form 15CA/15CB
• FEMA reporting
• Bank documentation

Shares can also be transferred through:

• FEMA-compliant valuation
• Form FC-TRS reporting

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Common Challenges Faced by NRIs

❌ Lack of resident director
❌ Misunderstanding FDI rules
❌ FEMA reporting delays (FC-GPR)
❌ Bank KYC issues
❌ Repatriation misunderstandings
❌ Tax treaty interpretation errors

Professional assistance helps avoid compliance penalties.

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Conclusion

Setting up a venture in India as an NRI is a structured process involving:

• Entity selection
• FEMA & FDI compliance
• MCA incorporation
• Banking & capital infusion
• Tax & regulatory filings

With proper planning, India offers vast growth opportunities and ease of doing business for global entrepreneurs.

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Disclaimer

This blog is for informational purposes only and does not constitute legal, tax, or investment advice. Regulatory rules, FEMA provisions, FDI caps, tax laws, and incorporation policies may change over time. Always consult qualified professionals and verify latest rules before executing any business setup in India.

1. Understand TDS Rules for NRI Property Sale

✔ Applicable Section

Section 195 – TDS on payments to Non-Residents.

✔ TDS Rates

• Long-Term Capital Asset (held > 24 months):
  TDS = 20% + surcharge + cess (effective ~23% to 25%)
• Short-Term Capital Asset (< 24 months):
  TDS = slab rate of NRI (30% + surcharge + cess)

✔ Important

TDS is deducted on the sale value, not on capital gains, unless the NRI obtains a Lower Tax Deduction Certificate (LDC) under Section 197.

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📉 2. Option for Lower TDS Certificate (Recommended)

NRIs can apply for a Lower TDS Certificate to reduce TDS to:

• Actual LTCG amount, or
• Nil if no capital gain

Benefits

✔ Avoid heavy upfront tax
✔ Faster repatriation
✔ No refund dependency

This certificate is issued by the Assessing Officer based on estimated capital gains.

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🪪 3. Buyer Must Obtain TAN (Tax Deduction Account Number)

The buyer, not the seller, is responsible for deducting TDS.

Steps

1. Apply online at TIN-NSDL → Form 49B
2. Receive TAN within 7–10 days
3. TAN must be quoted while paying TDS (Challan 281) and filing returns

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📑 4. Collect Required Documents

📌 From NRI Seller

• PAN
• Passport
• Overseas address proof
• OCI/Visa (if applicable)
• Tax residency certificate (if DTAA is used)
• Purchase deed of property
• Bank details for payment
• Lower Deduction Certificate (if available)

📌 From Buyer

• PAN
• TAN
• Aadhaar
• Sale agreement
• Payment schedule

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💸 5. Calculate the TDS Amount

If Lower TDS Certificate Available

Apply rate mentioned in the certificate.

If No Certificate

Use standard TDS rates on full sale value.

Example:
Property sale value ₹1 crore → TDS approx. ₹23–25 lakh (LTCG case).

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🧾 6. Deduct & Deposit TDS Using Challan 281

Steps

1. Visit TIN-NSDL → e-Payment → Challan 281
2. Select:
   • 0020 (if company buyer)
   • 0021 (if individual buyer)
3. Choose Section 195 – TDS on Non-Residents
4. Enter TAN, seller PAN, and TDS amount
5. Make payment via net banking/RTGS/NEFT
6. Download Challan Receipt (CIN)

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📤 7. File TDS Return in Form 27Q

• Filed quarterly by the buyer
• Must include seller’s PAN, transaction details, and challan
• File on TRACES Portal

After filing, the buyer must generate Form 16A TDS Certificate and give it to the NRI seller.

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🌍 8. Repatriation of Sale Proceeds (For NRI Seller)

For sending funds abroad, NRI must submit:

• Form 15CA
• Form 15CB (CA certificate)
• Sale deed
• TDS challan
• Capital gain computation
• Bank KYC & FEMA declarations

Bank remits the funds from NRO account to overseas account.

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🧮 9. Claim Refund (If Excess TDS Deducted)

NRIs can claim refund while filing ITR 2 or ITR 3 if:

• Lower TDS certificate was not taken, and
• Actual capital gain was lower than TDS paid

Refunds are directly credited to the NRO bank account.

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📌 10. Common Mistakes to Avoid

❌ Buyer deducts TDS without TAN
❌ TDS deducted only on capital gains without LDC
❌ Wrong TDS section selected in challan
❌ Not filing Form 27Q on time
❌ Not issuing Form 16A
❌ Bank rejects repatriation due to missing 15CA/CB

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Conclusion

TDS on sale of property by an NRI is a multi-step compliance process involving TAN, tax deduction, TDS payment, Form 27Q filing, capital gains calculation, and repatriation rules under FEMA. Proper documentation and an early application for a Lower TDS Certificate can significantly simplify the transaction and reduce tax burden.

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Disclaimer

This blog is for educational purposes only and does not constitute financial, legal, or tax advice. TDS rates, FEMA rules, and tax laws may change. Readers should verify current regulations and consult qualified professionals before taking any action.