All investments
made by NRI's in the form of NRE accounts (Saving A/c, Fixed deposits) does not invite any
tax.
All NRI's can
give gifts without paying the gift tax from his / her NRE account to a close relative or a
friend.
NRI's can also
make investments in NR(NR) accounts (Non Resident non repatriable) accounts without paying
any income tax, and also give gifts once in a life time out of these funds without paying
any gifts tax.
Interests earned
on NR (NR) accounts can be repatriated or invested in NRE accounts.
The NRI's cannot
be questioned regarding their income abroad.
No wealth tax on
funds accumulated abroad.
Preferential
treatment in the allotment of public issues of limited companies.
Preferential
treatment in the allotment of non-agricultural land, houses, sites etc. by the government
authorities.
Preferential
treatment in getting admissions to Medical, Engineering and other educational
institutions.
NRI's can float
offshore companies in tax havens like Mauritius etc. and avail the benefits arising out of
double tax treaties existing between India and other tax havens.
Under the income
tax act 1961, investment income are taxed at a lower rate of tax, an option exercised for
NRI's only.
Any NRI having
only an investment income or long term capital gain need not file return of income under
the income tax act 1961.
Investments
available on repatriation/non repatriation basis.
NRI's are
permitted to establish school and colleges all over India.