Friday, June 24, 2016

Tax Benefit of Buying Health Insurance in India for NRI - Section 80D

There is no doubt that in today's expensive world you need a good health insurance policy for your family and parents. Hospitalization and the Medical cost have risen significantly in India and expenditure ranging in 5 lakhs to 10 lakhs is nothing for a major critical illness like Cancer and Heart-related disease. It's simply not possible to arrange huge amount, ranging from 5 to 50 lakhs for hospitalization and medicines at the time of need, it's both difficult and troublesome, that's why buying a health insurance is a must for a family guy.  Indian government allows both residents and NRIs to claim tax rebate under section 80D for health care expenses for its spouse, children and parents. Particularly for NRI, where parents are living in India, they should buy adequate health insurance policy.

Friday, June 17, 2016

How to Send Money to Overseas from NRE or Resident account - Online Repatriation

You can send money to abroad on your overseas saving account from an NRE account in India. You can do this both online from the comfort of your office or home and offline from any branch of your bank. This is also known as repatriation or outward remittance. Almost all banks in India, both private sectors e.g. HDFC bank, ICICI, Kotak, YESBANK, Citibank and public sector banks like SBI, Bank of Baroda, Bank of India and others provide an online facility in their net banking website to transfer money to your overseas account. Remember, you cannot send money abroad from India using Money agent, you need to use Bank accounts, Demand draft or bank cheque only. There is also a limit of maximum money a resident Indian can send to abroad, currently around 250,000 USD per year.

Saturday, June 11, 2016

How to determine NRI status of Individual for Income tax purpose?

If you have just gone last year, how do you check whether you are an NRI or not? Well, this guide will help you to determine your NRI status. In general, if a person stays more than 182 days outside of India in a given financial year then he is considered as NRI (Non Resident Indian) for income tax purpose, but there are more to it. In this tutorial, I'll explain how to check NRI status in detail and why it is important to find out NRI status before filling income tax return. One of the most common doubt for new NRIs i.e. individuals migrating to overseas for employment or business purpose in current financial year to determine their NRI or Resident status for income tax filing purpose. Since resident and non-resident has different taxation requirement (it's not mandatory for NRI to file income tax return), it's extremely important for you to determine your correct residential status for current financial year.