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? Well, everything begins with finding out whether you qualify as an NRI or a resident. And this may not always be easy. To add to the confusion, the definition of Non-resident is different under … [Read more...] about Who is NRI as per FEMA and Income Tax Act?
Non resident indians
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?
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
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
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