Understanding the Difference Between NRI and PIO: Key Features and Benefits

Understanding the Difference Between NRI and PIO: Key Features and Benefits

As India continues to grow and develop, more and more people are exploring opportunities to live, work, and invest in the country. However, with different types of visas, residency statuses, and investment options available, it can be challenging to navigate the system and figure out what works best for you. Two common categories that are often confused are Non-Resident Indian (NRI) and Person of Indian Origin (PIO). In this blog post, we’ll clearly understand the differences between NRI and PIO, including the key features and benefits of each.

NRI vs. PIO: Key Features

Non-Resident Indian (NRI)

An NRI is an individual who holds an Indian passport but lives outside of India. This can be due to various reasons, including work, education, or personal choice. To be considered an NRI, an individual must have spent fewer than 182 days in India in a financial year or 365 days in the four years before the financial year. NRIs can invest in Indian markets, but their investments are subject to certain restrictions and may be subject to taxes on their Indian income. Additionally, NRIs are not eligible to vote in Indian elections.

Person of Indian Origin (PIO)

A PIO is an individual who is not a citizen of India but can prove their Indian origin through birth, marriage, or descent. PIOs are typically foreign nationals with at least one Indian parent or grandparent. PIOs are eligible to apply for a PIO Card, which allows them to enter and exit India without a visa for up to 15 years. PIOs can also open a Non-Resident External (NRE) account, which allows them to hold and transfer their income earned outside India in Indian currency. Additionally, PIOs can invest in Indian markets without restrictions and are eligible to vote in Indian elections.

NRI vs. PIO: Key Benefits

Non-Resident Indian (NRI)

  • Access to Indian markets: NRIs can invest in the Indian stock market, mutual funds, and other investment vehicles. However, their investments are subject to certain restrictions and may be subject to taxes on their Indian income.
  • Taxation: NRIs are taxed differently than Indian residents. For example, they are not taxed on foreign income, but they may be taxed on income earned in India.
  • Banking: NRIs can open an NRE account, which allows them to hold and transfer foreign currency into India. They can also open a Non-Resident Ordinary (NRO) account, which allows them to hold income earned in India in Indian currency.
  • Repatriation: NRIs can repatriate their income earned in India to their country of residence, subject to certain conditions.

 

Person of Indian Origin (PIO)

  • Visa-free travel: PIOs are eligible for a PIO Card, which allows them to enter and exit India without a visa for up to 15 years.
  • Investment: PIOs can invest in Indian markets without restrictions.
  • Banking: PIOs can open an NRE account, which allows them to hold and transfer their income earned outside India in Indian currency.
  • Voting rights: PIOs are eligible to vote in Indian elections.
Tax collected at source (TCS) on remitting money abroad under liberalized remittance scheme (LRS)

Tax collected at source (TCS) on remitting money abroad under liberalized remittance scheme (LRS)

Tax collected at source (TCS) on remitting money abroad under liberalized remittance scheme (LRS)

What is TCS? – Tax Collection at source is the excess amount collected in the form of tax by seller of goods from the buyer at the time of selling of goods over and above the sale price. Collected Tax then remitted to the government.

Is TCS applicable on foreign remittance? – Yes, as per section 206C(IG) of Income Tax Act, 5% TCS is applicable on sending money out of India for more than Rs.7 lakhs in a financial year under Liberalised Remittance Scheme of RBI. In absence of Aadhaar or PAN while remitting money abroad, 10% TCS is charged by authorized dealers. This rule has been affected from Oct 1, 2020.

Different overseas transactions eligible for TCS? – All permitted current & capital account transactions for individuals under LRS will attract TCS of 5% if the remittance amount is equal to or more than 7 lac rupees. All such remittances on which TCS is applicable are detailed below:

  1. Current Account Remittances:
  • Money sent for overseas education
  • Money sent for Gifts & Donations
  • Money sent for medical treatment abroad
  • Money sent for family maintenance
  • Money loaded & reloaded in travel card (Forex Card)

 

  1. Capital Account Remittances:
  • Loan to relatives
  • Investment in overseas shares & mutual funds
  • Investment in properties abroad

Please note that TCS at only 0.50% will be applicable for money sent for education purpose out of education loan taken from any financial institute. For example, if money remitted is Rs. 10 lacs out of education loan taken from bank, then TCS will be applicable at 0.50% on Rs. 3 lacs (Up to Rs. 7 Lacs TCS is not applicable) which comes to Rs. 1500/-. 

Please also note that a limit of Rs. 7 lacs is for entire financial year. For example a person send CAD 10000 (Rs. 6 Lacs at conversion rate of Rs. 60 per CAD) from India to his son living in Canada on 05.04.2023 and send CAD 10000 (Rs. 6 Lacs at conversion rate of Rs. 60 per CAD) again on 10.10.2023 in the same financial year, then a TCS of 5% will be applicable on Rs. 5 Lacs (Total money sent Rs. 12 lacs, free limit Rs. 7 lacs, Taxed amount Rs.5 lacs.) which comes to Rs. 25000/-

Is TCS applicable for import & export of goods & services? – No, TCS is not applicable for import & export of goods & services. TCS is also not applicable for overseas direct investment in joint ventures & wholly owned subsidiaries by private limited companies, limited companies, LLPs & registered partnership firms.

Is TCS also applicable on overseas tour packages? – Yes, TCS at 5% is applicable on overseas tour packages and there is no free limit of Rs. 7 lacs. Any tour & travel operator should collect TCS at 5% from the buyer of the overseas tour package regardless of the amount of the package.

Can I claim refund of TCS? – Yes, the amount paid by buyer of foreign exchange by way of TCS will reflect in his 26AS statement after the seller filed his TCS Return. Buyer can claim the refund while filing income tax return in case buyer has not any tax liability. Thus TCS amount will be refunded after filing of Income Tax Return.

Latest changes in TCS slab announced by hon’ble finance minister Nirmala Sitharaman in union budget 2023-24 on 1st Feb, 2023. Please not that all the changes mentioned below will become effective from 1St July,2023.

  • 20% TCS will be applicable for all overseas remittances except for the purpose of education & medical expenditure that too without any threshold limit of 7 lacs.
  • Remittances under liberalized remittance scheme for the purpose of family maintenance and GIFT, Investment in shares, properties & mutual funds will attract a flat TCS rate of 20% irrespective of amount of transaction.
  • Remittances for the purpose of overseas education & medical treatment is kept same as previous with only 5% TCS over 7 lacs of transaction amount.
  • Overseas tour packages will now become costlier as TCS limit has been increased to 20% irrespective of amount from 5% earlier.

           Let us understand this with the help of table given below:

Existing TCS Rate
Flywire payments from India made convenient | Everything Indian students need to know

Flywire payments from India made convenient | Everything Indian students need to know

These days, many Institutions worldwide are accepting payments through FLYWIRE and have made It compulsory.

Flywire is headquartered in Boston, Massachusetts, United States and is a payments enablement and software firm with the purpose to execute the most significant and difficult payments in the world.

Flywire assists to make it easier for consumers to pay, regardless of where they are in the globe and assists clients in being paid.

Flywire has removed the boundaries using adaptable solutions providing frictionless transaction experiences, which has made it possible to conduct international payments and receivables. for individuals to manage the worldwide world of today without allowing boundaries to define how they make payments

They have strived to strengthen client connections over the previous decade create cutting-edge technology, became market leaders, and nurture a distinctively rational business culture oriented on customer relationship management.

 

In this section, all the top queries related to FLYWIRE:

  • How do you make a payment to an institution using FLYWIRE?
  • How to send money from India through flywire?
  • Why Universities has adopted Flywire?
  • What if Flywire is unavailable at the university you’re interested in?
  • How to get assistance in India for generating payment instructions and making the payment?
  • Is flywire cheaper than a bank transfer?

 

  • How do you make a payment to an institution using FLYWIRE?

 

Step 1: At pay.flywire.com select your institution name.

*If you don’t see the name of your institution just click on the payment link given by your institution.

Step 2: Select the Country(Your bank account is located) you are making a payment from and enter the amount.

Step 3: Now select the Payment Method (Each payment mode displays the amount to be paid).

*Each Payment mode differs from one, some of them may require additional documents.

Step 4: Add all details necessary related to the payer.

*If you are using the link given by your Institution some of the details may be pre-populated.

Step 5: Lastly, fill out the information required by your institution.

 

 

Once you review and confirm your payment information, you will be provided with the instructions to complete your payment, you need to transfer funds to Flywire to complete your Payment via either of the following:

  • Online banking/  Mobile Banking
  • Telephone Transfer 
  • In Person Visit to the Bank Branch

 

*If you are choosing to pay Via bank transfer you will need to initiate your payment directly with your bank using the account details provided in the payment instructions.

*If you are choosing to pay Via an online payment method, you will be redirected to the secure site of the payment partner, after entering the required information you will be redirected to Flywire’s website.

You can always check your status in the “Track Your Payment” option mentioned in the Email sent to the payer.

 

  • How to send money from India through flywire?

FLYWIRE might provide several payment options depending on the institution that a person is paying. When paying from India, they can often accept the following payment methods:

 

  • Why Universities has adopted Flywire?

With the help of Flywire, hundreds of educational institutions may adapt to the various demands of millions of students throughout the world while also enhancing operational effectiveness and cash flow. Their complete receivables solution helps their clients easily accept and reconcile payments from anybody, anywhere in the world, at any time, and is supported by a strong global payment network, top-notch security, and round-the-clock multilingual assistance.

 

  • What if Flywire is unavailable at the university you’re interested in?

Your institution might choose to provide you with a payment link to begin the payment process if you were requested to pay using Flywire but were unable to locate them in the drop-down option.

In this situation, if you have any inquiries regarding using your payment link, contact your institution immediately.

 

  • How to get assistance in India for generating payment instructions and making the payment?

IBRLIVE INDIA PVT LTD is one of the most trusted organizations in Panipat, Haryana which helps students generate payment instructions and make the final payment on a low exchange margin. You can simply visit the website https://ibrlive.com/contact and call them directly for assistance.

 

  • Is flywire cheaper than a bank transfer?

Flywire payments from India are just like sending money abroad through your bank. Neither is costlier nor cheaper. While paying through flywire from India to any university in Canada, two options are available to students. One is to convert CAD to USD and then make payment in USD through your local bank and the second option is to convert CAD into INR and send the money through RTGS. The second option is cheaper than the first one.

E-BRC meaning, new process to print E-BRC & utilization for export incentives?

E-BRC meaning, new process to print E-BRC & utilization for export incentives?

E-BRC- A digital proof of completion of export

 

E-BRC (Electronic-Bank Realizations Certificate) is a certification for all export businesses. Banks issue this as a confirmation to the exporters for goods they have shipped and payments they have received from the importer. Along with proof, it is also needed to avail the benefits that come under Foreign Trade Policy. The Director General of Foreign Trade (DGFT) in India administers the foreign trade policy and many trade incentives 

 

In this Section, we will discuss:

  1. What is the process of E-BRC printing?
  2. How to utilize the advantages?
  3. How to use e-BRC to submit an export incentive claim?

 

 

What is the process of E-BRC printing?

 

DGFT has migrated the old e-BRC portal to the new e-EBC portal

Just Follow Simple steps to view/print your e-BRCs

Step1: Visit https://www.dgft.gov.in

Step2: Click on Login and enter your DGFT user ID & Password to get in

Step3: Click on the My Dashboard menu & select Repositories

Step4: Select Bills Repositories

Step5: Under the “Select Bill” Option, click “Bank Realizations/Reconciliation (e-BRC)”

Step6: Enter your shipping bill details or date and click on search to view and print e-BRCs

 

How to utilize the advantages?

  • On the Indian Customs Electronic Data Interchange Gateway, known as ICEGATE, a shipping bill is created electronically in India. The DGFT receives the information from a shipping bill automatically and electronically via ICEGATE. To claim export incentives, an exporter must link applicable shipping bills with e-BRC.

 

  • The value on which the export incentive will be granted will be determined by DGFT when an exporter submits a claim for one under a DGFT program. For this, DGFT compares the total realised value against export as stated in the e-BRC with the Free on Board (FOB) value of the exported items as stated in the shipping bill.

 

*Point to Remember

Exporters must make sure that the bank reports the correct e-BRC value and that it displays the overall actual value when they apply for export incentives. The bank should adjust the e-BRC value if it is less.

 

How to use e-BRC to submit an export incentive claim?

 

  • Export paperwork and the Electronic Foreign Inward Remittance Certificate (eFIRCs) are delivered to the appropriate banks after payment has been received and the full amount of the shipping bill has been deposited into the bank account.
  • Bank settles the shipping bills in EDPMS and creates an e-BRC on the DGFT website.
  • The bank then uploads the acquired foreign exchange in INR currency, according to the exchange rate declared by CBEC (Central Board of Excise and Customs)
  • After that, the exporter can take the print of their e-BRC through the DGFT website.
  • Exporter then submits eBRC as proof of export to avail of various export incentives like duty drawback, RoDTEP, RoSCTL, interest subventions and GST refund.
WUBS- Well-known platform for making international tuition payments

WUBS- Well-known platform for making international tuition payments

WUBS now have commonly known as Convera. It was formerly known as Western Union Business Solutions. It is the largest non-bank B2B Cross-border payments company in the world.

They offer better money moves to their customers, enabling them to generate greater advantages with every transaction, by using their decades of industry experience and technology-led payment solutions.

More than 30,000 clients use Convera’s services, including small company owners, corporate treasurers, educational institutions, financial institutions, legal firms, and NGOs.

Convera is a trustworthy, reputable worldwide platform for making tuition payments.

With over 140 different currencies offered, you may pay for your education in the region of your choice.

One can use a variety of payment options like wires, credit cards, e-wallets, bank transfers, incl. Alipay, and other payment methods like Trustly and Sofort.

Let’s discuss it more clearly like:

  • What methods of payment are available from India?
  • Is it possible to make a payment at a Convera Agent location?
  • What per cent of TCS is applied to payments for education?
  • Is there a tax credit available?
  • How does it work?
  • Benefits of using Convera?
  • How to get assistance for generating instructions and making the payment through WUBS?

 

 

  • What methods of payment are available from India?

When transferring money with GlobalPay for Students, students from India have several safe choices. Payments may be made in person at a subscribing Convera Agent location or electronically using a bank account, such as ICICI or the majority of the country’s major banks. In fewer than five days, these payments are settled. You may check the progress of your money here after sending it.

 

  • Is it possible to make a payment at a Convera Agent location?

Yes. You can initiate a transfer on GlobalPay for Students and finalise the transaction at a Convera Agent location in India when transferring money from India to institutions all around the world. You must choose your institution, fill out your information, and choose “Convera Agent Location” from the list of payment options to complete payment. You will find payment instructions to finalise the purchase at a Convera Agent location on the final page of the process. You may check the progress of your payment here after submitting it.

  • What per cent of TCS is applied to payments for education?

 

  • Any overseas money transfers made through LRS that total more than INR 700,000 in a fiscal year, including payments for education without loans, are subject to a 5% TCS.
  • If a loan is taken from a financial institution for educational purposes, a 0.5% TCS is applied.

 

  • Is there a tax credit available?

Yes, subject to relevant income tax regulations, TCS paid can be offset against tax due when submitting income tax returns (ITR) in India. The Pan cardholder’s Form 26AS will show a reflection of the TCS remittance received from the bank.

 

  • How does it work?

Depending on the payment method you choose, the payment procedure differs.

 

If the institution you’re trying to pay is not already which was before for you, you will first be prompted to identify it while accessing the GlobalPay for Students website.

The nation from which you are making the payment and the kind of payments you are paying will then be asked for.

After that, the total amount due and your payment choices will be shown.

Your student ID, name, address, and other details about the person making the payment must be provided.

You will then be instructed to finish your payment using the source you choose.

 

  • Benefits of using Convera?

Convera lets you pay for your tuition using GlobalPay for Students with the confidence that your money will receive on schedule and in full, free of any additional fees or bank fees. Your institution receives the entire amount you pay in your currency.

The following are some advantages of utilising GlobalPay for Students:

Enjoy a variety of payment methods and pay in the currency of your choosing.

No getting bank fees or secret charges. Anybody may pay for you and you can pay from any place.

Your payments are transferred immediately and in full to your institution.

Online payment status tracking is available.

  • How to get assistance for generating instructions and making the payment through WUBS?

IBRLIVE INDIA PVT LTD is one of the most trusted organisations in Panipat, Haryana which helps students generate payment instructions and make the final payment on a low exchange margin. You can simply visit the website https://ibrlive.com/contact and call them directly for assistance.

PayMyTuition – Is PayMyTuition cheaper for sending college fees abroad?

PayMyTuition – Is PayMyTuition cheaper for sending college fees abroad?

An integrated payment system is now a reality rather than simply a pipe dream.

The MTFX Group of Companies, a top supplier of technologically advanced worldwide payment processing solutions, offers PayMyTuition, which provides cutting-edge solutions with next-generation payment technology to several industry verticals as a dependable partner for more than 25 years, including education, multinational organisations, banks, law firms, and travel agencies.

Students may use PayMyTuition to pay for tuition and other costs in their currency, saving thousands of dollars in transfer and currency exchange fees. The cost savings for each payment might reach thousands of dollars.

PayMyTuition guarantees the lowest pricing. They specialize in transferring money at a lower cost than the bank and their rivals.

PayMyTuition offers excellent services in many languages via a variety of contact methods, including call, mail, 24/7 live chat, and Skype, in addition to saving you money.

 

In this section we will cover:

  • How to create an Account in PayMyTuition?
  • What are the steps for paying university fees via PayMyTuition?
  • From where to find the payment receipt?
  • Which payment options does PayMyTuition accept?
  • What if any Country is not showing in the list?
  • What if any institute is not listed?
  • How to get assistance for generating instructions and making the payment through PayMyTuition?

 

 

  • How to create an Account in PayMyTuition?

Step1: Visit  www.paymytuition.com

Step 2: You need to add your personal information using a strong password.

Step 3: Accept all terms and conditions

Step 4: Your final step will be “Create your account”.

 

  • What are the steps for paying my university via PayMyTuition?

      -Visit paymytuition.com.

– From the dropdown menu, choose your institution.

– Choose the nation from which you are sending the payment and enter the amount you wish to send to your institution.

– Choose your desired payment method from a list of available ones in your local currency, including domestic and international bank transfers, credit card purchases, bill payments, e-transfers, and e-wallet transactions.

– You will then be requested to either sign up or go into your PayMyTuition account. If you’re using PayMyTuition for the first time, getting started is quick, easy, and cost-free.

(After Creating an account,)

– A page with instructions for submitting money to PayMytuition will now appear. Download the following instructions to pay money to PayMyTuition through bank transfer online or in person at your bank.

– Track your payments in real-time using your web dashboard once you’ve sent your money.

– You can choose to complete your transaction, request a longer payment deadline, or, if necessary, cancel your payment, depending on your payment option.

– Every step of the way, PayMyTuition will send you emails or SMS notifications to let you know the status of your payments.

– Your payment has already started, that’s all!

 

  • From where to find the payment receipt?

You may get a transaction receipt from PayMyTuition by clicking the download button in the sections of your “Payments Center” dashboard for pending or delivered payments. The transaction receipt is used as your institution’s proof of payment.

 

  • Which payment options does PayMyTuition accept?

To best meet your needs, PayMyTuition supports a wide range of payment methods, including credit/debit card payments, bank transfers, e-wallets, and other online payment choices.

 

*Please be aware that payment options may differ according to where you are situated.

 

The available cards will be shown if you choose to pay for your transfer using a credit or debit card. You will be capable of paying by card straight on their website after creating your payment request. Other online payment options that you could utilise follow a similar procedure.

After the payment request procedure, detailed payment instructions comprising your account information will be given to you if you want to utilise the bank transfer option. You will then be able to start your transfer in person at your bank or via your online banking system.

 

*Please be aware that the transfer from your bank must be started using the specified payment instructions.

 

  • What if any Country is not showing in the list?

Due to limits and rules put in place by the government, some nations are not available in their drop-down menus. If any nation is not included in the drop-down menu, it is because it has been sanctioned.

 

To find out if there are any other options accessible to you for paying your tuition, they advise students to get in touch with their educational institution immediately. 

 

  • What if any institute is not listed?

Some universities prefer to direct payers through their specific student portal to complete transfers, thus if you are wanting to make a payment using PayMyTuition or an institution has requested that you do so, you will not find them listed within the institution choice list. Please get in touch with your institution if PayMyTuition is featured on its website but not on theirs. They will give you the appropriate link and guidance to begin your payment.

  • How to get assistance for generating instructions and making the payment through PayMyTuition?

IBRLIVE INDIA PVT LTD is one of the most trusted organisations in Panipat, Haryana which helps students generate payment instructions and make the final payment on a low exchange margin. You can simply visit the website https://ibrlive.com/contact and call them directly for assistance.