NRI News Letter from SBI Thiruvananthapuram Circle… September 2020/Vol.1, No.

HIGHLIGHTS OF THIS EDITION

E
 News Round Up
 News from the Bank TURNING INDIAN TAXATION
 Interest Rates
 Tax liablity of on return of NRI to India
 SBI Builder Tie up Projects
 PPF for NRIs-Amendment in Notification
 Alleppey (Tourist destination) NEWS ROUND UP

KERALA

 As many as 70,000 Non-Resident Keralites (NoRKs) who have reached the State after January this year and
are unable to return to their workplace due to the pandemic-induced lockdown have been given financial
assistance of ₹5,000 each by the government. The assistance was provided by the NoRKA-Roots to
beneficiaries through banks after verification of the travel documents. (Source : The Hindu)
 The Rajiv Gandhi Institute of Development Studies (RGIDS) is organising a development summit named
‘Pratheeksha 2030’ to prepare a blueprint for the development of the State over the next 10 years.
(Source : The Hindu)
 Malayalam film 1956, Madhyathiruvithamkoor (Central Travancore), directed by Don Palathara, has been
chosen for screening at the 42nd edition of the Moscow International Film Festival to be held in October.
(Source : The Hindu)

FINANCE

 Reserve Bank of India revised its Priority Sector Lending guidelines to enable better credit penetration to
credit deficient areas; increase the lending to small and marginal farmers and weaker sections; boost
credit to renewable energy, and health infrastructure. Bank finance to start-ups (up to ₹50 crore); loans to
farmers for installation of solar power plants for solarisation of grid connected agriculture pumps and
loans for setting up Compressed Bio Gas (CBG) plants have been included as fresh categories eligible for
finance under priority sector. ( Source : RBI Website)
 Asian Development Bank (ADB) expects India’s economy to contract by 9% in 2020-21, worse than its
earlier forecast of 4% three months ago in June, as the Covid-19 Pandemic weighs heavily on economic
activity and consumer sentiment in the country. ( Source : The Economic Times)
 Digital payments in India are expected to grow over threefold by 2025 due to growing smartphone
penetration, Covid-led changes in consumer behaviour and policies around financial inclusion. According to
a report by Redseer Consulting, Rs 7,092 trillion worth of transactions are expected to be conducted by
2025, a CAGR of 27 per cent. (Source : The Hindu)
 State Bank of India had introduced OTP based cash withdrawals above Rs.10,000 between 8 pm and 8 am
through its ATMs from January 2020. Now the future has been extended 24X 7 across all SBI ATM from
18th September 2020.
(Source : The Hindu Business Line)

NEWS FROM THE BANK

HOUSING LOAN CONCESSION UPTO 31.12.2020

➢ Interest Concessions for Home Loan (HL) Amount: Above 30 lacs to 1 Cr

Concessions in Interest rate based on CIBIL Scores

Product CIBIL Score: 725 to 775 CIBIL Score: Above 775

HLs (fresh or takeover) 0.05% 0.10%

➢ Processing Fee for Home Loans (Above 30 lacs to 1 Cr) through Builder Tie Ups (BTU): NIL

For more details please contact us at: rehbu.lhotri@sbi.co.in ; Contact No : 0471 -2192362/359

CAR LOAN CONCESSION UPTO 31.01.2021

➢ 50% reduction in Processing Fee.

➢ Nil processing charges from green Car(Electric Car) Loans

For more details please contact us at: cmauto.lhotri@sbi.co.in; Contact No : 0471 -2192368

TDS ON CASH WITHDRAWALS EXCEEDING ₹ 20 LACS

➢ Finance Act, 2020 w.e.f. 1st July, 2020 further amended Income-tax Act, 1961 to lower the threshold of
cash withdrawal to Rs. 20 lakh for the applicability of TDS for the non-filers and also mandated TDS at the
higher rate of 5% on cash withdrawal exceeding Rs. 1 crore by the non-filers. As such Banks in India have
to deduct tax on cash withdrawals made by any person (herein referred to as the recipient) from one or
more accounts maintained by the recipient through all channels during a Financial Year, as per threshold
mentioned below (w.e.f. 01.07.2020).

Particulars Rate of TDS

Cumulative Cash ITR filed by ITR not filed

PAN not
Withdrawals in the current Customer & by Customer &
available
Financial Year PAN available PAN available
Up to ₹ 20 Lacs NIL NIL NIL
From ₹ 20,00,001 to ₹. 1 Crore NIL 2% 20%
More than ₹ 1 Crore 2% 5% 20%
 FCNR Interest rate with effect from 10th September 2020 (in % p.a); (Annualized yield at the end of the period) #
Resident Foreign
FCNR (B) Deposits
Currency (RFC)
Currency USD GBP EURO CAD AUD JPY USD GBP EURO
Period Rate Yield Rate Yield Rate Yield Rate Yield Rate Yield Rate Yield Rate
1 year 0.75 0.75 0.59 0.60 0.01 0.01 0.78 0.79 0.17 0.17 0.02 0.02 0.75 0.59 0.01
1 year to < 2 years 0.01 0.01 0.78 0.80 0.17 0.17 0.02 0.02 0.74 0.61 0.01
0.75 0.76 0.59 0.60
2 years to < 3 years 0.01 0.01 0.56 0.57 0.17 0.17 0.05 0.05 0.76 0.64 0.01
0.74 0.76 0.61 0.62
3 years to < 4 years 0.01 0.01 0.63 0.65 0.21 0.21 0.05 0.05
0.76 0.78 0.64 0.66
Maximum: 3 yrs
4 years to < 5 years 0.10 0.10 0.72 0.74 0.32 0.33 0.05 0.05
0.79 0.82 0.69 0.71 only
5 years 0.86 0.89 0.73 0.75 0.15 0.15 0.79 0.82 0.41 0.42 0.05 0.05

Interest Rate on NRI Loans

NRI Home Loan Starting from 6.95%
SBI Home Top Up Loan Starting from 7.50%
SBI REALTY - Home Loan for purchase of Plot Starting from 7.65%
P-LAP -Personal Loan Against Property Starting from 8.80%
Car Loan Starting from 7.75%
Green cars (Electric cars) Starting from 7.55%

TAX LIABILITY OF ON RETURN OF NRI TO INDIA

Under the Indian Tax laws, there is no separate concept called “Returning Indian”. However, the timing of the
return to India does make a tax difference for the year in which the NRI returns. When we use the term
“returning Indian” for the purpose of this article, we are referring to a NRI who has been out of India for fairly
long period (say 11 years or more) and have decided to come and stay in India on a permanent basis.
In the case of the ‘returning Indian’, he has to plan/address the following with the help of his Chartered
Accountant:
(a) Plan the appropriate day/month of return to India.
(b) Ascertain his tax residential status for the year in which he returns to India for good.
(c) Ascertain for how many years he can enjoy his RNOR status.
RESIDENT BUT NOT ORDINARILY RESIDENT [RNOR]
Once the Individual qualifies as “Resident in India”. The next step is to ascertain whether the individual is (a)
Ordinarily Resident; or (b) Not Ordinarily Resident in India (RNOR). The RNOR status is very important for
returning Indians because under this status there are some tax exemptions available to them.
(1) An individual (not covered under 2 & 3 below) qualifies as ‘RNOR’ if he fulfills any one of the two
conditions laid down as under:
(i) he has been non-resident in India in 9 out of the 10 previous years preceding the
relevant previous year; or
(ii) he has during the 7 previous years preceding that year been in India for a period
aggregating to 729 days or less
(2) An individual being a citizen of India, or a person of Indian origin, having total income, other than the
income from foreign sources, exceeding fifteen lakh rupees during the previous year, qualifies as RNOR
if, he has:
(a) been in India for a period or periods amounting in all to 120 days or more but less than 182 days
during the previous year.
(3) An Individual qualifying as “deemed to be Resident” will always be RNOR.
Some specific tax/FEMA provisions for returning Indians are as under:
1. Immediately on return to India the NRO accounts must be re-designated as resident accounts.
Accordingly, the TDS rate that was applied @ 31.2% on NRO accounts will stand reduced to 10%.
2. On returning to India, the FCNR accounts is permitted to be held till maturity. Thereafter it cannot be
renewed. On maturity the FCNR accounts funds can be credited to RFC A/s. (Resident Foreign Currency
A/c). The interest earned on FCNR account is taxable only if the status of the person is “Ordinarily
Resident”. In other words, the interest is exempt as along as the status is RNOR. Even the interest earned
on RFC account is exempt under RNOR status.
3. On returning to India, as per FEMA regulation, the NRE accounts must immediately be converted into
Resident account or RFC account.

4. Returning NRI can continue to hold their assets overseas (bank accounts, investments, immovable
properties) without any restriction on time and value. However, the income earned on such overseas
assets may become taxable in India when their status becomes ‘Ordinarily Resident’.
Income exempted from tax for RNOR status:
Interest on FCNR accounts
1. Rental income from immovable properties held outside India, provided the rental income is not
received in India.
2. Dividends & interest income earned and received outside India

Caution:

We wish to draw your attention to two important development – (a) Significant changes in residential status definition
w.e.f 01.04.2020; and (b) Pandemic Covid-19 situation world-wide.

Due to the present pandemic Covid-19 situation, many NRIs are stranded in India which has resulted in over-stay in India.
The CBDT has issued circulars to address such over-stay in India. It is imperative that professional help must be taken to
ascertain your residential status in view of the two cited developments.

[The writer is Mr. Dinesh Nair, Chartered Accountant, M/s Dinesh Nair & Associates, Mumbai, Email:
dinesh@dineshnair.com]
 SBI’S BUILDER TIE UP PROJECTS

SI
Project Name Name Of Builder City Contact Person Details
No.
1 Kalyan Credenz KALYAN DEVELOPERS Ernakulam
DD Global Village by
Sudarsan Clay and
Ceramics Ltd Managed and
2 Marketed by Desai Homes Desai Homes Ernakulam
3 Galaxy Pine Court (Tower I) GALAXY HOMES PRIVATE LIMITED Ernakulam
4 Yeskay Regalia (Tower I) YESKAY BUILDERS Ernakulam
SYNTHITE INDUSTRIES PRIVATE
5 Lavender Bay LIMITED Ernakulam
6 V B Earth BAVASONS CONSTRUCTIONS Ernakulam
Anta Builders and Developers Mr. Murali V
7 Anta Highway Avenues Private Limited Ernakulam Assistant General Manager(Home
Loans)
8 The Jord VAIPPIL VILLAS AND APARTMENTS Ernakulam
Mob No : 9447428854
9 Mansions Pristina Ms Mansions Ernakulam Email ID :
agmhomeloans.ernakulam@sbi.co.in
10 Nanma Fenix NANMA PROPERTIES LTD Ernakulam
11 Confident Pinnacle CONFIDENT PROJECTS RESIDENTIAL Ernakulam &
INDUSGRATIA CREATIVE HOMES
Mr.Mohandas P B
12 Breezy Meadows PRIVATE LIMITED Ernakulam
Chief Manager
13 Accord Metropolis ACCORD HABITAT PRIVATE LIMITED Ernakulam Mob No : 9495701400
NEO SINMAR DEVELOPERS PRIVATE Email ID :
14 NSD Jewel Pristine Greens LTD Ernakulam cmhomeloans.ernakulam@sbi.co.in
15 SMS Vista SMS BUILDERS Ernakulam
AVK MERITAGE HOMES INDIA PVT
16 Meritage Merlot LTD Ernakulam
17 Galaxy Cloud Space GALAXY HOMES PRIVATE LIMITED Ernakulam
18 NJN Melody N J N HOMES Ernakulam
VEDAPURI LOTUS PROPERTIES PVT
19 Lotus Sopanam LTD Ernakulam
20 Veegaland Bliss VEEGALAND DEVELOPERS PVT LTD Ernakulam
OCEANUS ESTATES INDIA PRIVATE
21 Oceanus Maple LIMITED Ernakulam
22 The Anchor MAPLETREE HABITATS LLP Ernakulam
23 INAYA GARDENS Chandys Homes Kottayam Mr. Vinod Raghavan
Chief Manager
Mob No : 9446413200
Email ID :
24 DD VENTURE ONE Ms DESAI DREAM RETREAT P LTD Kottayam cmhomeloans.aoktm@sbi.co.in
HIGHLINE BUILDERS AND
25 HIGHLINE PARK DEVELOPERS Kannur Mr. Ramesh A V
26 IRIS SREEROSH DEVELOPERS PVT LTD Kannur Chief Manager
Mob No : 9447718283
27 SEA BREEZE SREEROSH DEVELOPERS PVT LTD Kannur Email ID : cmhlst.aoclt@sbi.co.in
28 CRESCENT TRITON CRESCENT BUILDERS Kozhikode
29 COURT YARD QUEENS HABITATS PVT LTD Kozhikode
CALICUT LANDMARK BUILDERS
30 MAPLE DEVELOPERS PVT LTD Kozhikode
 SI
Project Name Name Of Builder City Contact Person Details
No.
31 PPD THE ANTHEM PRIME PROPERTY DEVELOPERS Trivandrum

32 MANSIONS "KING PALMS" Ms Mansions Trivandrum

Artech LIFESAPCES (Legacy,
Inspire, Elite, Freedom
33 towers) Artech Realtore P LTD Trivandrum
Confident FLORIS (Trf of CONFIDENT PROJECTS
34 Ker1469889012 to OPAS) RESIDENTIAL Trivandrum
CONFIDENT PROJECTS
35 Confident 'CROWN' RESIDENTIAL Trivandrum
Artech METROPOLIS (Tr of
36 Ker1459431879 to OPAS) Artech Realtore P LTD Trivandrum
Confident Daffodil (Ker CONFIDENT PROJECTS
37 1506332440) trfed to OPAS RESIDENTIAL Trivandrum
KALYAN AVANTI (Ker
1505479623 trfd to OPAS and
38 Renewed) KALYAN DEVELOPERS Trivandrum

39 SUN 'CORNER STONE' Sun project india Pvt Ltd Trivandrum

SFS Olympia Zeus and Rhea
40 (Ker 1467290963) SFS Trivandrum
Beacon FORT VIEW Mr. Unnikrishnan V .S
(Ker1503988320 trfd to OPAS Chief Manager
41 P6203856) BEACON PROJECTS PVT LTD Trivandrum Mob No : 9539388815
HEATHER FERNS Email ID :
42 (Ker1501842114 trfd to OPAS) HEATHER HOMES PVT LTD Trivandrum
osf.zotri@sbi.co.in
OCEANUS SUNSHINE PHASE 1
43 AND 2 Oceanus Estates India P LTD Trivandrum
Indroyal property-UP TOWN
44 (Ker1435996314) Indroyal property Pvt Ltd Trivandrum

45 KALYAN "GATE WAY" KALYAN DEVELOPERS Trivandrum

46 Nikunjam THARANGINI Nikunjam Constructions Pvt Ltd Trivandrum

47 POWER LINK HILARY POWER LINK BUILDER Trivandrum

Favourite Homes THE SPRING FAVOURITE CONSTRUCTIONS PVT
48 WOODS LTD Trivandrum

49 Sreedhanya VANTAGE POINT SREE DHANYA HOMES PVT LTD Trivandrum

The Serenebay by Favourite FAVOURITE CONSTRUCTIONS PVT
50 Homes LTD Trivandrum

51 VSC HOMES MILAN CASTLE V S C HOMES PRIVATE LIMITED Trivandrum

THE GARDENIA by Favourite FAVOURITE CONSTRUCTIONS PVT
52 Homes LTD Trivandrum

53 SI Property TEMPLE TREE SI Property Kerala Pvt Ltd Trivandrum

54 Kalyan developers CENTRUM KALYAN DEVELOPERS Trivandrum

55 Kalyan SAPPHIRE KALYAN DEVELOPERS Trivandrum

HEATHER MAGNUM
56 (Ker1500013551 trfd to OPAS) HEATHER HOMES PVT LTD Trivandrum
Artech COURTYARD
57 KER1435991209 Artech Realtore P LTD Trivandrum
 SI
Project Name Name Of Builder City Contact Person Details
No.
58 ARTECH MEADOWS Artech Realtore P LTD Kollam
DESAI RACHANA Mr. Arun Ghosh
59 DD TOWER ONE Pathanamthitta
PRIVATE LIMITED Chief Manager
60 SKYLINE WINDMILL SKYLINE Pathanamthitta Mob No : 9895883839
Email ID : arun.ghosh@sbi.co.in
61 ARTECH KAAZHCHA Artech Realtore P LTD Thiruvalla

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NRI DEPARTMENT
LOCAL HEAD OFFICE, POOJAPURA,
THIRUVANANTHAPURAM, KERALA - PIN 695 012
Email : nridesk.kerala@sbi.co.in
TeL : +91 471- 2351836,2192355 / 358