How does FEMA impact NRI taxation?

Here are some of the property rules for the NRIs under the FEMA guidelines. 

List of the properties that an NRI can purchase under the FEMA rules: 

• They can purchase any residential property in India. 
• NRIs can buy commercial properties in India. 
• Plots for any construction. 
• Any property which is jointly owned by another NRI and an Indian resident. 

Properties which you cannot purchase under the FEMA guidelines: 

• You cannot purchase any agricultural land in India. 
• Cannot purchase any plantation land in India. 
• Any farmhouses. 

Here are some of the investments that are allowed under the FEMA guidelines: 

• They can invest in Indian stocks via the portfolio Investment scheme. 
• Invests in residential and commercial properties. 
• In mutual funds. 
• Investment in government bonds and corporate bonds. 

NRIs cannot invest under the FEMA guidelines: 

• In any Public Provident fund or a new account. 
• National savings certificate. 
• Post services schemes. 
• In agricultural or plantation lands. 
• In the post office schemes. 

According to the FEMA (Foreign Exchange Managnment Act), a person is a resident of India if he is: 

Stays in India for more than 182 days during a financial year, but it cannot include the following: 

• for any employment outside India. 
• carrying out business or a trip outside India. 
• For other purposes, which involve staying outside India. 
• A person who visited and stayed in India, otherwise: 

Any person who has any employment in India.

• For any business or vacation in India. 
• for any other purposes, to stay in India for an uncertain time period.