Tuesday, February 21, 2017

Difference between Wire Transfer (SWIFT) and ACH (Automated Clearing House) Money transfer

Even though both Wire transfer and ACH are ways to send a large amount of money from one place to another, there are some significant differences in the way they operate. A wire transfer, also commonly referred as SWIFT transfer is an electronic transfer of money from one financial institution to other across the financial network. The word "wire" is chosen to signal the electronic transfer of money. It is fast and secure and can be used to transfer fund from one bank or credit union account to other. The wire transfer is mostly used for international money transfer e.g. sending money from the USA to India, particularly for a large amount of money due to its safety, security and speed advantages because no actual cash is moved in wire transfer transaction.

Sunday, February 12, 2017

Opening an NRE Fixed Deposit? Compare Interest Rates among Banks

NRE Fixed deposits are one of the best options for NRIs. It's safe, offer fixed and good returns and most importantly interest earned on NRE fixed deposit are not taxable in India. On top of that, you can also repatriate (send money to overseas from India) both principle and interest. Still, there are a couple of things every NRI should know about NRE fixed deposit before booking. Most important of them is that minimum tenor for earning the interest on NRE Fixed Deposits is 1 year. If you withdraw or break your NRE FD before 1 year then no interest will be paid.

Yes, Transfer Money form NRO to NRE Saving Account, FCNR is Allowed

Not many NRIs (Non-resident Indians) knows that, from May 2012, NRI can transfer fund from NRO account to NRE account in India. Earlier this was not the case though you can transfer funds from NRE to NRO account, the reverse was not allowed. The only way to fund your NRE saving account was through your offshore income earned in foreign currency.

Wednesday, February 8, 2017

5 Difference between ELSS vs PPF vs NSC vs Tax Saving Fixed Deposit

ELSS (Equity Linked Saving Scheme), PPF (Public Provident Fund), NSC (National Saving Certificate) and Tax-saving fixed deposits with banks are four of the most popular way to save tax under section 80C, but which one is the best among these four? How do you choose whether to invest your 1.5 lakh rupees, the maximum amount allowed to invest under section 80C qualified for deduction from taxable income?

Can I break FCNR Fixed Deposit before Maturity?

It depends on the bank to bank, most of the bank doesn't allow you to break your FCNR fixed deposit if it's done for more than 3 years, but you can do premature withdrawal if its done for less than 3 years. Most of the bank including ICICI, HDFC and Kotak Mahindra doesn't pay any interest if you break your FCNR term deposit within a year. If you break your FCNR FD after year, you will likely get less interest rate than promised, mostly what is equivalent to the period money remained in the Bank. So, make sure you check with your relationship manager about premature withdrawal penalty before opening an FCNR fixed deposit.

Monday, February 6, 2017

13 ways to Save Income Tax under Section 80C in India

It's this time of the year when most of the salaried Indian think for tax saving investments. Most of the income taxpayers know about section 80C and the 1.5 lakh tax deductions it allows into your taxable income, but do you know what are some other investment options comes under section 80C? Some of you know that investment in PPF and ELSS (Equity linked Saving Scheme) comes under Section 80C, but what else? Is there any other tax saving options which you can leverage or you might have invested in it but you are not claiming the tax benefit because you are unsure whether that is covered under section 80C or not.

Friday, February 3, 2017

Top 5 Income Tax Changes and Slab Rates from Budget 2017

The Indian Budget for 2017 has been announced a couple of days back and Finance Minister Mr. Arun Jaitely announced some Income tax reforms, amendments, and relief for personal income tax payers of India in his budget 2017 speech. The most important of them are 5% tax on the lowest slab i.e. 2.5 lakhs to 5.0 lakhs instead of 10%. This change will impact most of the tax payers in India as data provided in the budget, total 3.7 crore people filed income tax returns in 2015-16 and out of those almost 2 crore was in the range of 2.5 lakh to 5 lakh.