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?
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?
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
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
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 sell those? 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?