Saturday, May 13, 2017

Can NRI Invest in Stock Market and Mutual funds in India?

Yes, NRI can invest in the stock market as well as in mutual funds in India, provided they have an NRE saving account in India. Investing in a Mutual fund is easier than directly investing in Stocks because you don't need a Demat account to invest in the Mutual fund and also there are a lot of restriction applicable to NRI directly investing in Stocks.

So if you don't want to go through the hassle of opening a Demat account and a Portfolio Investment account, required by RBI to keep track of NRI investment on the stock market, it's better to invest in Mutual funds and exchange traded funds.

Saturday, May 6, 2017

Should you take personal loan/ balance transfer in Singapore and pay off a home loan in India?

This is one of the most frequently asked questions among Singapore NRI community. I often receive queries from IT professionals working in the city-state who have home loans back in India and thinking to pay off in full or a portion of them by taking a personal loan or credit card balance transfer in Singapore. Well, the idea to take a loan to pay off another loan only make sense if you are getting a cheaper loan and paying off a higher interest loan. Since most of the home loans in India charges around 9.5 to 11% in INR and you can get personal loan on credit card also known as balance transfer in Singapore for as low as 2.5% for 6 month it make a lot of sense to take a personal loan in Singapore and pay off your home loan in India, though there are some risk which you need to consider. For examples, this only make sense if you have the visibility that you will be in Singapore for next 6 month or more.

Saturday, April 29, 2017

NRE Saving Account FAQ - Non Resident External Account Frequently Asked Questions Answers

The NRE account stands for the Non-Resident External account and I strongly believe, every NRI who has any interest in India must open this account. It has some excellent features which are not available to other types of account e.g. interest earned on NRE account is tax-free in India and not only that, both principal and interest are fully repatriable to overseas. You don't need to ask for permission or worry about paperwork, if you need money in overseas, you can always transfer from your NRE bank account.

Friday, April 21, 2017

Migration to Australia, NewZeland, USA, UK, and Singapore More Difficult for Indian IT Professional Now

This month, particularly this week, starting from 18th April was pretty bleak for Indian IT professional looking for migration and an onsite opportunity to Australia, NewZeland, and the USA. Things were not easy from quite some time where many firms all over the world chopping and moving workforces from high-cost location to low-cost location and thus reducing the onsite opportunity for a large number of ambitious Indian IT guys working in service-based companies like Infosys, TCS, Wipro, and CTS. Things have started getting even worse due to a series of VISA reforms done by these nations to employ more stricter policies on immigrants has made the onsite dream of Indian IT professional even more difficult.

Friday, April 7, 2017

Can You transfer money from NRE to another NRE, NRO, FCNR and Resident Saving account? ICICI or HDFC?

One of the most common question among NRIs (Non-resident Indians), especially among IT professionals traveling to the USA, UK, Singapore onsite are whether they can transfer funds from one NRE account to another NRE account, or NRO account, or FCNR account, or a Resident saving account or not? Since many IT professionals have their resident saving account in India when they travel to Overseas and which they later converted to NRO account, this doubt is obvious. Well, since NRE account is maintained in Indian rupees, there is no restriction on transferring your money from one NRE account to another NRE, NRO, FCNR or resident saving account.

Friday, March 31, 2017

Can you send money from abroad to a normal Indian savings account, will it be taxable?

One of the frequently asked questions by people going abroad is that, whether they can send money to a resident saving account in India or not? Will that be taxable? The answer to this question depends upon whose resident saving account? For example, if you send money from abroad to a normal saving account of your parent, spouse, or children then it will be considered as a gift from Income tax perspective and gift to parent, spouse, and children are not considered as income in India, hence they will not be taxable.   But, if you send them to somebody else’s normal saving account then it will be considered as their income and they are liable to pay income tax on that.