Friday, September 4, 2015

Eligibility Criterion to Open Sukanya Samriddhi Yojna Account

Ever since Sukanya Samriddhi Yojna account has launched parents are very enthusiastic to open SSY account in the name of their daughter. Many of my friends have asked about whether they can open Sukanya Samriddhi account or not? Do it has some income criterion? I am currently outside India can I open Sukanya Samriddhi account? Can NRI open Sukanya Samriddhi account if daughter is Indian citizen etc. In this post, I will give you overview of who can open SSY account and who cannot by explaining eligibility criterion of Sukanya Samriddhi account.

Saturday, August 29, 2015

How NRI can avoid Tax on Foreign Income by timing Departure and Return

If you are an NRI returning to India for good or an Indian going abroad, you need to be aware that you need to pay tax on your foreign income (earned outside India a.k.a global income) if you come before February 1st or leave after September 28th. Taxation in India depends upon individuals residential status. An Indian citizen, who is NRI for a financial year i.e. from 1st April to 31st March is not required to pay tax on their global income but if his residential status is Resident and Ordinarily Resident (R) then his global income is also taxable. In order to attain NRI status, you need to stay more than 182 days outside India, remember the arrival and departure dates are also counted as stay in India. So if you somehow manage to do that by timing your arrival or departure then you can save good amount of tax by avoiding your foreign income to be taxed in India @ higher rate of 33% . Though those dates are little bit adjustable depending upon whether current year is a leap year or not and depending upon whether you have spent less than 365 days in India in preceding four years, but it gives an indication how an NRI can prevent his foreign income to be taxed at higher rate on India.

Saturday, August 22, 2015

Why Invest in Sukanya Samriddhi Yojna scheme? Benefits and features

PM Modi has launched several good financial schemes e.g. Atal Pension Yojna to provide a retirement solutions to many peoples from un-organized sector, PradhanMantri Jan dhan yojna to open bank accounts for poors, Pradhanmantri Suraksha Yojna to provide cheapest insurance to Indian citizens and my favorite Sukanya Samriddhi Yojna to save money for your daughter's education and marriage. It's one of the best, government backed saving and investment option you will find, I guess only PPF is close matched to it, but this is only for parents with a girl child. If you have a daughter aged less than 10 years, you can open a Sukanya Samriddhi account for her in your nearest post office which provides investment option. The key feature of this account is slightly higher interest rate it offer in comparison of Personal Provident Fund account. Interest rate is around 9.2% for year 2015 - 2016 with added tax benefit because this scheme falls under section 80C of income tax in India. All the money you put in this account will be deducted from your taxable income, potentially bringing down you from higher tax bracket to lower one. I strongly suggest you to learn more about this excellent scheme and if you have a daughter its right time to open a Sukanya Samriddhi account for her. In this article, I will share my experience and why I didn't open SSY account even after so much conviction, its bit of contradiction but I always put visibility, accessibility and inconvenience over investment and interest rate.

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