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 favourable 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?
As a non-resident Indian (NRI), you may want to repatriate money that you had transferred to India for purchasing a property or investing in stock markets. Alternatively, you may want to remit local income or proceeds from sale of some of your Indian assets. RBI has given sufficient flexibility to NRIs to remit funds abroad from India. Even the funds from the sale of assets … [Read more...] about NRI Corner: Remittance Facilities for NRIs
Interest rates in India are higher than many developed countries. A number of Non-resident Indians (NRIs) see this as opportunity to borrow at a low interest rate and invest in a NRE fixed deposit (NRE FD) at a higher interest, thereby netting the interest rate difference as profit. Things are never that simple. There is a risk arising from potential depreciation of rupee. A … [Read more...] about NRI Corner: Interest Rate Arbitrage is not without risk
You may have moved out of India but you may still want to invest in Indian companies. This could be because of opportunities that Indian equity markets offer or due to your familiarity with Indian equity markets. But you have a number of questions. How can NRIs invest in stock markets in India? Are there any restrictions on NRI investment in equity markets? Can NRIs trade in … [Read more...] about NRI Investment: How to start in stock markets?
There are many Indians, who despite staying abroad, want to invest in India. The reasons range from familiarity with investments in India, higher deposit rates, higher growth potential to favourable tax treatment. While there are a few financial products such post office savings schemes and Public Provident Fund (PPF) where NRIs are not allowed to invest, there are some … [Read more...] about NRI Corner: NRE, NRO and FCNR(B) Deposits