Friday, January 22, 2016

Why and How to Appoint a Mandate Holder in NRE or NRO account?

Mandate Holder is a unique facility many private sector banks like ICICI and HDFC bank provides to NRI customers. According to this faculty, NRE/NRO account holder can appoint a resident Indian (a family member only) to manage your account on your behalf. Since, being an NRI, you cannot physically be present in India to handle your financial matters for most of the year, having a mandate holder really helps.

Friday, January 15, 2016

Is NRI's Overseas Income Taxable in India? Which Source of Incomes are Taxable?

Whether global income of NRI is taxable or not depends on NRI's residential status in India for that financial year e.g. from 1st April to 31st March. If NRI's tax status is "resident" in the financial year than your global income is taxable in India, which includes income earned abroad + income earned in India. But, if your residential status is non-resident for a financial year than income earned on overseas is not taxable in India but any income earned or accrued in India is taxable in India e.g. interest earned on NRO fixed deposit.

Wednesday, January 13, 2016

NRI can use Double Tax Avoidance Agreement (DTAA) to save tax

NRIs are always in doubt with taxation and many times they end up by paying double tax on same income, both in the foreign country they are currently working and staying and on India. In order to avoid this double taxation of income, the home and the source country mutually enter into tax treaty generally known as DTAA. India has signed DTAA treaty with more than 80+ countries, which includes the USA, UK, Canada, Singapore, Malaysia, UAE, Germany, Australia etc.

Saturday, January 9, 2016

Can you add Nominee in your NRE or NRO account? Saving and Fixed deposit

Yes, you can add any family member or close relatives as a nominee in your NRE account. Almost all the banks, both public sector e.g. SBI, Bank of Baroda and private sector banks e.g. ICICI, HDFC, Axis Bank provides nomination facility. This is one thing many NRI customers either avoid doing it or they just don't know about it, but I strongly suggest you have a nomination in all of your bank accounts, not just the NRE, NRO or FCNR account.

Friday, January 8, 2016

How to save additional tax by investing in National Pension System

Good News for all income taxpayers of Indian. Now, they can reduce additional 50 Thousand INR on taxable income by investing in National Pension System for the financial year 2015-2016. This may result in the tax saving of around 15 thousand INR, which is not a small amount. Add another 15K and you can have a foreign trip.

Why open RFC (Resident Foreign Currency) Savings Account or Fixed Deposit

An RFC (Resident Foreign Currency) Savings Account is a savings account maintained in foreign currencies e..g USD, CAD, EURO or GBP for NRIs who have returned to India for good but has some foreign currency fund to park. One of the main reason of opening RFC account is that you can also open the RFC account as term deposit to park your foreign currency, which you can later transfer into NRE or FCNR accounts when you gain your NRI status back e.g. when you moved to abroad again.

Sunday, January 3, 2016

Difference between Re-issue and Renewal of Indian Passport

If you are an NRI, currently outside India and your passport's expiry is near then you might be thinking about re-issue of passport, but if you are confused between renewal and re-issue of an Indian passport then you have come to right place. There is a difference between Re-issue and Renewal of a passport. Passports are Re-issued after the expiry of their 10-year validity period.

Friday, January 1, 2016

Why and How NRI Should open NPS (National Pension Scheme) Account

In my last post, can NRI invest in National Pension Scheme, I told you that NRIs are now allowed to open NPS accounts, it's time to share more information about NPS e.g. why an NRI should invest in National Pension Scheme. One of the main reason NRI should open NPS account is to build their retirement or pension corpus in India. Since many NRI working abroad don't have any kind of social security, especially those who are working in middle east and gulf country. For all Non-resident Indians, this is now a golden chance to plan for their old age income.