Saturday, November 7, 2015

Why Should an NRI Open NRE or NRO Account?

Many of my NRI readers ask me frequently, should I open an NRI saving account in India? Is it must for an NRI to open NRE or NRO account? Can I continue my existing Saving account in India? etc. Well, If you are going abroad for short term let's say less than 6 months then you don't need to open an NRE or NRO savings account and you can continue to maintain your existing Resident Saving account in India, but you are going overseas for long term e.g. more than 6 months you must inform your bank about your NRI status and subsequently then will convert your Resident Saving account to an NRO (Non-Resident Ordinary) account. Why is term important? because an Indian citizen is considered NRI for tax purpose if he spends more than 182 days abroad in a given financial year.

Tuesday, November 3, 2015

5 Differences between NRE and NRO Fixed deposit -HDFC ICICI SBI Kotak

Difference between NRE and NRO fixed deposit
NRI has two option to invest in Fixed deposit in India NRE  fixed deposit and NRO fixed deposit, but you need to be careful whether you choose NRE or NRO fixed deposit as taxation rules on NRE and NRO Fixed deposit is different. Principle and Interest earned in NRE fixed deposits are completely tax-free while interest earned on NRO fixed deposit are subject to TDS and deduct at the maximum rate of 30%. Also, you can send rupees back to your overseas account if it is held in NRE fixed deposit, but you can not repatriate money from NRO fixed deposit. In this article, we will see some differences between NRE and NRO fixed deposit opened with any Indian banks like ICICI, HDFC, SBI or Kotak Bank and find out whether you should open NRE fixed deposit or choose NRO fixed deposit based upon your requirements.

Saturday, October 31, 2015

Tax Saving Instruments and Investment for salaried employees In India

Tax Saving Schemes for salaried employees India
As the financial year proceeds to ends many of my colleagues and friends started thinking of about tax saving though I have always suggested them to do it in a planned way from the start of the year it never happened. Since we all know that we can save up to 1 lac under Section 80C of the Income Tax Act and there are lots of tax saving scheme available.

Here are top 4 ways to invest your 80C investments for tax saving:
1. Life insurance premium e.g. LIC
2. Buy ELSS mutual fund e.g. Birla Sun life Tax Saver or ICICI Prudential Tax Saver
3. Tax-saving fixed deposit
4. Buying National Saving Certification NSC
5. Invest in Sukanya Samriddhi Yojna if you have a daughter, see here to learn more

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