Friday, October 2, 2015

List of documents required for opening Sukanya Samriddhi Yojna Account

If you are eligible to open Sukanya Samriddhi Yojna account, as per eligibility criterion showed here and decided to open a sukanya samriddhi account then, accept my congratulations. It's a great decision to secure future of your daughter. Now, coming back to formalities, in general, you will need following documents to open an SSY account:

1. Sukanya Samriddhi Yojana Scheme Account Opening Form (you can download from the RBI website here, or get it from bank and post office)

2. Passport size photograph (mandatory, both yours and girl child)

3. Copy of ID proof (mandatory)

4. Birth Certificate copy of girl child (mandatory, to verify age of your daughter)

5. Residence proof – as per RBI KYC policy (optional if you have already submitted or have existing relationship with bank you are opening account)

Saturday, September 26, 2015

Does interest earned on NRO saving account and FD are Taxable in India?

Yes, unlike interest earned on NRE saving account and NRE fixed deposits which are totally tax-free in India, interest earned on NRO saving account or NRO fixed deposit are taxable in India. In fact, as per the current regulation, tax is deducted at source @normal rate of 30.9%, which is calculated by @30% + surcharge + cess 2%, surcharge can be up to @10% if taxable income is more than 10 lakhs INR. Which means, funds lying in NRO account can be taxed at the rate of almost 40.9% in India. In short, almost half of the interest goes to the government. Though, if you don't have any other income in India, you can claim this TDS deduction by filing your tax return of submitting form 15G, if you are not a senior citizen and 15H if you are a senior citizen having age more than 60, to the bank to avoid TDS in the first place.

Friday, September 18, 2015

Can You Open a Joint NRE or NRO account (savings and fixed deposit)?

Yes, you can open a joint NRE or NRO savings, current or fixed deposit and FCNR fixed deposit account, but who you can use as joining partner depends upon what type of account you are opening and citizenship of other account holder. For example, if you are opening an NRO (Non Resident Ordinary) savings, fixed deposit or current account then you can open it jointly with any resident Indian or NRI. It means you can open NRO account jointly with your parents, spouse or your siblings, of-course if they are staying in India or any NRI e.g. your wife and children which are staying abroad with you. NRO is the most flexible in terms of citizenship of joint account holders. Other two, NRE and FCNR are more restricted then NRO. You can only open a joint NRE account with non-resident Indians, jointly opening NRE account with resident Indians are not allowed. Same is true for FCNR fixed deposits, which can only be open jointly with another NRI. There are several benefits of opening joint account be it NRE or NRO, and it goes long way in your financial planning. You will see the true benefits of opening joint account in next section.

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