With each passing day, Aadhaar card is occupying greater and greater space in our lives. We have been asked to link Aadhar card to our mobile phones, bank accounts, PAN card, investments, and insurance. You need to link Aadhaar card to get various basic services such as availing LPG subsidy, service pension or filing income tax returns etc. You might have to take a bit of pain … [Read more...] about Aadhaar card not mandatory for NRIs
This is not a good news for NRI (non-residents) who have invested in PPF accounts. As per a recent Government notification, PPF accounts have to be closed when the account holder becomes an NRI (non-resident Indian). As I understand, the definition of NRI (person outside India) as per FEMA will be considered (and not as per Income Tax Act). So, if you are going abroad for … [Read more...] about NRIs have to close their PPF Accounts
If you are an NRI and are returning to India permanently, you need to convert your non-resident accounts (NRO, NRE) to resident accounts. You should be allowed to continue your NRE FDs as resident FDs at contracted rate till maturity. However, when you visit the bank branch to change your residential status, you are in for a surprise. What Banks typically force returning … [Read more...] about NRI Corner: You do not have to break your NRE FD on return
In this post, I will focus on certain aspects of capital gains taxation for non-resident Indians (NRIs). Even though the rate of capital gains tax is same for residents and non-residents, there are a few differences that affect taxation for NRIs. Tax exemption limit for NRIs is Rs 2.5 lacs irrespective of age. In case of Resident Indians, the tax exemption limit is Rs … [Read more...] about NRI Corner: Capital Gains Tax for NRIs
Moving abroad for employment or planning to shift back to India permanently? How will your income be taxed? Can you continue holding NRE deposit and continue to get tax-free interest? In my opinion, everything begins with finding out whether you qualify as NRI or a resident. And this may not always be easy. To add to the confusion, the definition of Non-resident is different … [Read more...] about Who is NRI as per FEMA and Income Tax Act?
As a non-resident, you may want to take exposure to Indian equity markets. Picking up stocks on their own is not everybody’s cup of team. Such non-resident investors may take exposure to equity markets through equity mutual funds. In this post, I will discuss answer basic queries that an NRI investor may have about mutual fund investments in India. I will also discuss the … [Read more...] about How can NRIs invest in mutual funds in India?
You settled abroad many years ago. You are planning to purchase a life insurance plan. You are not sure whether to purchase a life insurance plan in India or in the country of residence. In this post, I will discuss various regulations pertaining to life insurance for Non-residents. I will also discuss whether you should purchase insurance in India or whether you should a … [Read more...] about Should NRIs purchase life insurance in India?
Non-residents face a favorable tax regime in India. Their global income is not taxed in India, which is not the case with resident Indians. Only income earned in India is taxed in India. However, there is one aspect of taxation where residents fare better. Tax deduction at source (TDS) rates are much higher for NRIs as compared to resident Indians. In this post, I shall list … [Read more...] about NRI Corner: Income Tax and TDS Rates for NRIs
As a resident Indian, you may want to remit money abroad to children for their education expenses or you may want to remit money for maintenance of a close relative abroad. You may need foreign exchange for a private or a business trip or medical treatment abroad. What do you do? Well, you can purchase foreign exchange from an Authorized Dealer banks, money changers, entities … [Read more...] about Liberalised Remittance Scheme and Sending funds abroad
If you are a non-resident and planning to return to India, there are many questions that worry you. What about your assets acquired abroad? Can you hold them or do you have to dispose them? What about your NRO, NRE and FCNR accounts and deposits? Can you continue holding such deposits or do you have to convert them to resident accounts? What will be the tax implications? And … [Read more...] about Returning NRI: What happens to your NRO, NRE and FCNR accounts?