You invest Rs 10,000 on January 1 every year for 20 years. In the first case, you earn a constant 6% p.a. for the first 10 years and 12% for the last 10 years. In the second case, you earn a constant 12% p.a. for the first 10 years and 6% p.a. for the last 10 years. Will you end up with the same corpus in both the cases? After all, Compounded Annual Growth Rate (CAGR) is the … [Read more...] about How do you calculate your Mutual Fund Returns: CAGR, IRR or XIRR?
NRI Corner
NRI Corner: Plan to take a loan abroad to invest or replace a loan in India?
If you are an NRI, you may be able to get a loan at a very low rate of interest in your country of residence? If you have such an option, you may feel tempted to take a low cost loan and invest in India. For instance, let’s say you can borrow at 3% p.a. abroad and invest in India in NRE fixed deposits at 7.5% p.a. Looks a very good deal, isn’t it? Alternatively, if you … [Read more...] about NRI Corner: Plan to take a loan abroad to invest or replace a loan in India?
NRI Mutual Fund Taxation: How NRI Mutual Fund Investments are taxed?
In an earlier post, I discussed how NRIs can invest in mutual funds and the challenges they face while investing in India. In this post, let’s look at mutual fund taxation for NRIs (non-residents). NRI Mutual Fund Taxation: How is it different from residents? There are a few minor differences. #1 Long-Term Capital Gains Tax on Debt Funds For … [Read more...] about NRI Mutual Fund Taxation: How NRI Mutual Fund Investments are taxed?
How can NRIs invest in mutual funds in India?
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?
NRIs need not close their PPF account, atleast for now
There are not many things I dislike more than policy flip-flops. You cannot make a decision if the Government, bureaucracy or the regulator is trigger happy. Something similar has happened to policy on NRIs holding PPF accounts. Add to that, incompetence and non-customer-centric outlook of many bankers, the misery of an honest taxpayer and investor can only compound. In its … [Read more...] about NRIs need not close their PPF account, atleast for now
Aadhaar card not mandatory for NRIs
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
NRIs have to close their PPF Accounts
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
NRI Corner: You do not have to break your NRE FD on return
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
NRI Corner: Capital Gains Tax for NRIs
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
Who is NRI as per FEMA and Income Tax Act?
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?
