Latest news with #HardikMehta
Mint
06-06-2025
- Business
- Mint
NRI taxation: How to claim special tax concessions
MUMBAI : Non-resident Indians (NRIs) and Persons of Indian Origin (PIOs) often maintain a financial footprint in India through shares, deposits, or other financial instruments. However, many are unaware of the benefits of the Income Tax Act's sections 115C and 115I, which provide concessional tax treatment on certain incomes. Mint explains who can claim these benefits on which assets and when. The types of income that qualify for concessions The concessions apply to two specific types of income. 'The special tax provisions apply to income from foreign exchange assets such as interest, dividends, etc., or anything derived from specified foreign exchange assets. Long-term capital gains (LTCG) from the sale of foreign exchange assets are also covered," said Hardik Mehta, managing committee member, Bombay Chartered Accountants Society. Also Read: Golden tax window for NRIs: What RNOR means and how to use it However, Laxmi Ahirwar, director at chartered accountant firm P.R. Bhuta & Co, clarified that NRIs can not claim any deduction under Chapter VI-A (sections 80C to 80U), adding that even the indexation benefit on LTCG is not available. Foreign exchange assets The definition of a foreign exchange asset is strictly linked to the source of funds. 'Specific assets acquired or purchased with, or subscribed, using convertible foreign exchange are classified as foreign exchange assets. These are: shares in a private or public limited Indian company, debentures issued by a public limited Indian company, deposits with a public limited Indian company, any security issued by the central government, or any other security that the central government may specify by issuing a notification," explained Ahirwar. Mehta added: 'When you transfer US dollars from your foreign bank account to your non-resident external (NRE) account, these funds are initially converted into INR before being deposited into the NRE account. Consequently, if equity shares are bought utilising funds from the NRE account, they are considered as foreign exchange assets. However, if the same shares are acquired using domestic funds from the non-resident ordinary (NRO) account, they will not qualify for the preferential tax rate under the special tax provisions." Funds transferred from NRO to NRE According to Ahirwar, funds routed through NRE accounts are generally eligible for concessional tax treatment under sections 115C to 115I of the Income Tax Act, provided the investment is made using foreign exchange remitted into India. In contrast, investments made using funds from NRO accounts are not eligible, as these typically consist of income earned or accumulated within India. A frequent point of confusion arises when funds are transferred from an NRO to an NRE account using Forms 15CA and 15CB, a process permitted under the Foreign Exchange Management Act (FEMA). However, Ahirwar clarified that simply moving funds in this manner does not automatically qualify them for tax concessions. The key factor remains the original source of the money—it must have been inwardly remitted in convertible foreign exchange, not generated or retained domestically. 'This area is often subject to litigation," Ahirwar noted, 'as tax authorities may ask for proof that the investment was made from genuine foreign exchange inflows and not converted from Indian income." Even if the funds sit in an NRE account, the origin trail must be clearly established. Also Read: Do NRIs have to pay tax on mutual fund gains in India? Ahirwar added that case laws have consistently emphasized that the source of funds takes precedence over the type of bank account used. Therefore, taxpayers must maintain proper documentation, such as bank remittance advice or foreign inward remittance certificates, to demonstrate compliance and claim concessional tax treatment with confidence. Under Section 115E, the tax rates are fixed and applied on a gross basis. Mehta shared that 'as per Section 115E, the special tax rate on investment income is 20% and on LTCG 12.5%. The above taxation is on a gross basis, and no deductions or indexation benefits are available to the assessee. For those reinvesting their LTCG, Mehta added, 'LTCG is exempted from tax if net consideration is invested within six months from the date of sale in another foreign exchange asset or a savings certificate." If the price of a new foreign exchange asset is less than the net sale consideration, the exemption would be computed proportionately. A three-year lock-in would be applicable to the new foreign exchange asset purchased. 'If the new asset is transferred or sold within three years of purchase, then the exemption claimed earlier will be taxable in the year in which the new asset was transferred or sold," he explained further. For example, Mr A sells shares that qualify as foreign exchange assets for ₹10 lakh and earns LTCG of ₹2 lakh on the sale. Per Section 115E, this LTCG would typically be taxed at 12.5% on a gross basis. However, if the NRI reinvests the entire net sale proceeds within six months in any specified asset or any other assets as the central government may specify, the LTCG can be exempted from tax. But Mr A reinvests only ₹8 lakh out of the ₹10 lakh net sale consideration into a specified asset. Because the reinvestment is less than the net sale consideration, the exemption on the LTCG will be computed proportionately. This means the exempted LTCG will be calculated as (LTCG/net sale consideration) multiplied by the amount reinvested. In this case, ( ₹2 lakh/ ₹10 lakh × ₹8 lakh) ₹1.6 lakh would be exempt from tax. The remaining ₹40,000 would be taxable. Furthermore, the new foreign exchange asset bought with the reinvested amount will have a mandatory lock-in period of three years. If the NRI sells or transfers this new asset before the completion of three years, the earlier exemption claimed on the LTCG will be reversed and taxed in the year of such transfer or sale. This rule ensures that the reinvestment is maintained for a minimum period to qualify for the exemption. Continuous tax exemption Even after the initial three-year lock-in period, NRIs can continue to enjoy exemptions on LTCG, provided the proceeds from the sale are reinvested into eligible foreign exchange assets within the stipulated time. 'The tax exemption on LTCG doesn't have to be a one-time benefit," said Gautam Nayak, a chartered accountant. 'If the sale proceeds are reinvested into qualifying assets within six months, and those assets are held for the required period, the exemption can be carried forward indefinitely with each reinvestment cycle." This reinvestment must occur within six months of the sale of specified assets. Nayak explained that maintaining a proper documentary trail is critical in such cases. 'NRIs must be able to demonstrate that the original investment was made using convertible foreign exchange and that each subsequent reinvestment complied with the conditions specified under the Income Tax Act." Without clear proof of the source of funds and asset eligibility, claims for exemption may not hold up during assessment or scrutiny. For example, an NRI invests ₹20 lakh in shares using funds from their NRE account. After one year, the investment grows to ₹40 lakh. To claim the capital gains exemption, the entire ₹40 lakh must be reinvested within six months into another qualifying foreign exchange asset. After holding the new asset for the required three years, if its value increases to ₹60 lakh and is sold again, the exemption can still be preserved, provided the ₹60 lakh is reinvested once more into an eligible asset within six months. This cycle of reinvestment and exemption can continue as long as the NRI complies with the reinvestment timeline, asset eligibility, and documentation requirements. Even after an NRI returns to India and becomes a resident, they may continue to enjoy these concessions under certain conditions. 'NRIs returning to India can continue being governed under these special provisions for their investment income (except interest, dividend income on shares in an Indian company) by furnishing a declaration to the assessing officer, along with their income tax return (ITR)," Mehta explained. Also Read: EPF nightmare for NRIs: Service gaps, missing UANs, and frozen funds 'If an NRI becomes a resident in India in any subsequent year, he may submit a return of income along with a written declaration to the assessing officer stating that the special tax provisions should continue to apply to their investment income from foreign exchange assets," Ahirwar added.
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Business Standard
16-05-2025
- Business
- Business Standard
NRIs in US may soon have to pay ₹5,000 tax on every ₹1 lakh sent to India
If you're an NRI living in the United States and regularly send money home to India, a proposed new tax could soon make those transfers more expensive. The Republican-backed draft legislation, referred to as the 'Big Beautiful Bill', introduces a 5 per cent levy on all overseas remittances made by non-citizens. If passed, the rule could take effect from July 4, 2025, making you liable to pay an extra fee every time you send money abroad—from family support and education to healthcare and investments. 'For example, if you send $1,160—or around ₹100,000—to your parents in India, you may have to pay ₹5,000 more in tax,' said Rajarshi Dasgupta, executive director – tax. 'That money will be collected by the remittance provider—be it Western Union, MoneyGram or a bank—and passed on to the US government every quarter," he told Business Standard. Who will have to pay the tax You will be affected if you: Hold a visa such as H-1B, F-1, or J-1 Have a green card Are undocumented Use a remittance provider that is not formally approved by the US Treasury The only people exempt are verified US citizens or nationals, and only if they use a 'qualified' provider—one that has an official arrangement with the government to confirm your citizenship status. If you're a citizen but still get taxed by mistake, you'll need a valid Social Security Number (SSN) to claim it back later when you file your returns. Hardik Mehta, managing committee member, BCAS (Bombay Chartered Accountants' Society), said, 'The proposed development on excise tax on remittances outside the US can be seen as a replica of Indian TCS provisions on LRS remittances.' However, he pointed out that the mechanics of the levy require careful reading. 'While the tax is to be paid by the remitter, the bill also talks about giving credit of the said tax on the basis of SSN in the US. In that case it would function akin to the concept of advance tax payment,' Mehta said. India expected to feel the biggest impact India, which received $125 billion in remittances in 2023, is the world's largest recipient of money from overseas. According to official figures, nearly 28 per cent of this came from the United States. 'With billions in annual remittances and a large share from US-based NRIs, this friction could significantly reduce inflows, impacting foreign exchange reserves and potentially accelerating currency depreciation,' Dasgupta said. According to India's Ministry of External Affairs, around 4.5 million Indians live in the US—including about 3.2 million persons of Indian origin. Many send money regularly to support parents, cover education and medical expenses, or invest in property in cities like Mumbai, Hyderabad and Kochi. Dinkar Sharma, company secretary and partner at Jotwani Associates, told Business Standard, 'On paper, this might look like a small surcharge, but in practice, it marks a severe disruption to the trust, intention, and flow of transnational financial support.' What could change for you * You'll pay 5% more each time you send money abroad * You may have fewer choices of remittance providers, especially if they're not 'qualified' * If you're a US citizen, you'll need to check whether your provider is approved—or risk paying and claiming a refund later * If you're planning large transfers, you may want to do them before July 2025 'From the NRI perspective, if you're working in the US and planning to return to India eventually, you're effectively earning 5% less on every dollar sent home,' said Dasgupta. 'Remittance habits will need to be restructured, and large or planned transfers should ideally be completed before July.' He added that careful documentation of transactions will become even more important—not just for tax filings, but also to avoid legal and financial complications later. How families in India could be affected For families in smaller cities or rural areas that rely on this money, the new tax could hit hard. 'For families in tier-II and tier-III cities in India that depend on such remittances to cover basic expenses, this is not a trivial reduction—it could mean the difference between continuing education or dropping out, affording medicines or deferring treatment, paying rent or defaulting on EMIs,' said Sharma. He warned of a broader ripple effect, particularly in sectors like real estate, banking and consumer goods, which are often fuelled by NRI spending. 'Remittances are not speculative capital flows—they are deeply personal acts of economic solidarity that sustain intergenerational aspirations,' Sharma said. Why experts call the tax unfair Critics have called the tax regressive, saying it punishes migrants for supporting their families. 'Unlike capital gains or income tax, this levy is applied on post-tax earnings—money that has already been subjected to federal and state taxation in the US,' said Sharma. 'There's no service being offered by the government in exchange. It is, in essence, a pure extractive measure that penalises people for helping their families or investing in their homeland.' Democrats in Congress have raised objections, saying the Bill could disproportionately harm immigrant communities and low-income families who depend on remittances. Sharma added, 'The economic rationale is thin; the political overtones are loud. Remittances are not just economic transactions, they are acts of care and responsibility across borders. Taxing them sends the wrong message—not just to immigrants, but to the world.'
Hamilton Spectator
12-05-2025
- Business
- Hamilton Spectator
Quipt Home Medical Reports Fiscal Second Quarter 2025 Results
CINCINNATI, May 12, 2025 (GLOBE NEWSWIRE) — Quipt Home Medical Corp. ('Quipt' or the 'Company') (NASDAQ: QIPT; TSX: QIPT), a U.S. based home medical equipment provider, focused on end-to-end respiratory care, today announced its fiscal second quarter 2025 financial results and operational highlights. These results pertain to the three and six months ended March 31, 2025, and are reported in United States dollars. Conference Call Quipt will host its Earnings Conference Call on Tuesday, May 13, 2025 at 10:00 a.m. (ET). Interested parties may participate in the call by dialing 1 (833) 752-3722 or 1 (647) 846-8549. A live webcast of the call will be accessible via the investor section of the Company's website through the following link: , and a replay will be available on the investor section of the Company's website for at least the first year following the event. Financial Highlights: Operational Highlights: Management Commentary: 'While our second quarter performance was softer than expected, we remain focused on returning to a sustainable growth trajectory,' said Gregory Crawford, Chairman and CEO of Quipt. 'Over the last several months, we have taken targeted actions to strengthen our future organic growth execution, expand referral networks, and enhance operational efficiency. We are pleased with the strength of our Adjusted EBITDA1 in the face of the revenue decrease, which was solid at 23.3% of revenue, underscoring the structural improvements we made across the organization since late 2024. Looking ahead, our highest strategic priority is to reignite organic growth and utilize our scalable playbook that allows us to partner with healthcare systems in a more integrated way. We see a meaningful opportunity to embed Quipt as the preferred provider for hospital discharge-driven care, and we are actively engaged in multiple conversations with health systems across the country. We believe this approach has the ability to strengthen our long-term positioning, expand patient access, and drive sustainable value for all stakeholders. Our team remains energized by the opportunity ahead, and I want to thank our employees, partners, and shareholders for their continued support as we drive forward.' 'With a healthy balance sheet, modest leverage, and ample liquidity, we are well-equipped to support our near-term growth plans and pursue strategic initiatives, including health system partnerships.,' said Hardik Mehta, Chief Financial Officer of Quipt. 'This financial strength gives us the flexibility to support our organic growth initiatives and economically scale the business. Our cost structure is optimized, scalable, and aligned with our long-term objectives, and as we continue to strive for execution of our strategic growth plans, we expect this operational discipline to support strong margin performance throughout the year. We remain confident that our financial foundation, combined with a clear strategic direction, will support consistent margin strength and long-term value creation as we move through the remainder of 2025 and into 2026.' 1 Non-GAAP financial measure or ratio. See 'Non-GAAP Financial Measures' below for additional information. ABOUT QUIPT HOME MEDICAL CORP. The Company provides in-home monitoring and disease management services including end-to-end respiratory solutions for patients in the United States healthcare market. It seeks to continue to expand its offerings to include the management of several chronic disease states focusing on patients with heart or pulmonary disease, sleep disorders, reduced mobility, and other chronic health conditions. The primary business objective of the Company is to create shareholder value by offering a broader range of services to patients in need of in-home monitoring and chronic disease management. The Company's organic growth strategy is to increase annual revenue per patient by offering multiple services to the same patient, consolidating the patient's services, and making life easier for the patient. Forward-Looking Statements Certain statements contained in this press release constitute 'forward-looking statements' within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 or 'forward-looking information' as such term is defined in applicable Canadian securities legislation (collectively, 'forward-looking statements'). The words 'may', 'would', 'could', 'should', 'potential', 'will', 'seek', 'intend', 'plan', 'anticipate', 'believe', 'estimate', 'expect', 'outlook', or the negatives thereof or variations of such words, and similar expressions as they relate to the Company, including: the Company anticipating strong margin performance throughout the year and a return to historical organic growth levels in calendar 2025 ; are intended to identify forward-looking statements. All statements other than statements of historical fact, including those that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and may be forward-looking statements and may involve estimates, assumptions and uncertainties that could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. Such statements reflect the Company's current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties and assumptions, including, without limitation: the Company successfully identifying, negotiating and completing additional acquisitions; operating and other financial metrics maintaining their current trajectories, the Company not being impacted by any further external and unique events like the Medicare 75/25 rate cut and the Change Healthcare cybersecurity incident for the remainder of 2025; and the Company not being subject to a material change to it cost structure. Many factors could cause the actual results, performance or achievements that may be expressed or implied by such forward-looking statements to vary from those described herein should one or more of these risks or uncertainties materialize. Examples of such risk factors include, without limitation: risks related to credit, market (including equity, commodity, foreign exchange and interest rate), liquidity, operational (including technology and infrastructure), reputational, insurance, strategic, regulatory, legal, environmental, and capital adequacy; the general business and economic conditions in the regions in which the Company operates; the ability of the Company to execute on key priorities, including the successful completion of acquisitions, business retention, and strategic plans and to attract, develop and retain key executives; difficulty integrating newly acquired businesses; the ability to implement business strategies and pursue business opportunities; low profit market segments; disruptions in or attacks (including cyber-attacks) on the Company's information technology, internet, network access or other voice or data communications systems or services; the evolution of various types of fraud or other criminal behavior to which the Company is exposed; the failure of third parties to comply with their obligations to the Company or its affiliates; the impact of new and changes to, or application of, current laws and regulations; decline of reimbursement rates; dependence on few payors; possible new drug discoveries; a novel business model; dependence on key suppliers; granting of permits and licenses in a highly regulated business; legal proceedings and litigation, including as it relates to the civil investigative demand ('CID') received from the Department of Justice; increased competition; changes in foreign currency rates; increased funding costs and market volatility due to market illiquidity and competition for funding; the availability of funds and resources to pursue operations; critical accounting estimates and changes to accounting standards, policies, and methods used by the Company; the Company's status as an emerging growth company and a smaller reporting company; the occurrence of natural and unnatural catastrophic events or health epidemics or concerns; as well as those risk factors discussed or referred to in the Company's disclosure documents filed with United States Securities and Exchange Commission and available at , including the Company's most recent Annual Report on Form 10-K, and with the securities regulatory authorities in certain provinces of Canada and available at . Should any factor affect the Company in an unexpected manner, or should assumptions underlying the forward-looking statement prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking statements are expressly qualified in their entirety by this cautionary statement. Moreover, the Company does not assume responsibility for the accuracy or completeness of such forward-looking statements. The forward-looking statements included in this press release are made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking statements, other than as required by applicable law. Non-GAAP Financial Measures This press release refers to 'Adjusted EBITDA', 'Recurring Revenue', and 'Net Debt to Adjusted EBITDA Leverage Ratio', which are non-GAAP financial measures that do not have standardized meanings prescribed by generally accepted accounting principles in the United States ('GAAP'). The Company's presentation of these financial measures may not be comparable to similarly titled measures used by other companies. These financial measures are intended to provide additional information to investors concerning the Company's performance. Adjusted EBITDA is calculated as net loss, and adding back depreciation and amortization, right-of-use operating lease amortization and interest, interest expense, net, provision for income taxes, certain professional fees, including those related to the CID, the loss of private issuer status, and proxy contests and other actions of activist shareholders , stock-based compensation, acquisition-related costs, change in fair value of derivative liability – interest rate swaps, loss on foreign currency transactions, and share of loss in equity method investment. The following table shows our non-GAAP measure, Adjusted EBITDA, reconciled to our GAAP net loss for the following indicated periods (in $millions): Recurring Revenue for Q2 2025 is calculated as rentals of medical equipment of $24.0 million plus sales of respiratory resupplies of $22.3 million for a total of $46.3 million, divided by total revenues of $57.4 million, or 81%. Net Debt to Adjusted EBITDA Leverage Ratio is calculated as Net Debt, divided by (Adjusted EBITDA for Q2 times four), and is reconciled as follows (in $millions): For further information please visit our website at , or contact: Cole Stevens VP of Corporate Development Quipt Home Medical Corp. 859-300-6455 Gregory Crawford Chief Executive Officer Quipt Home Medical Corp. 859-300-6455 investorinfo@
