Saturday, March 26, 2016

Rajiv Gandhi Equity Savings Scheme Tax Benefits

Since the last date of the financial year 31st, March is approaching, many Mutual funds, brokerage house and Insurance companies are aggressively promoting their products in a bid to attract income taxpayers who like to save tax. Particularly, Mutual funds and brokers like ICICI Direct are trying to promote their tax saving options e.g. ELSS, Infra bonds etc. Recently I receive an email from ICICI direct regarding one of the lesser used tax saving option, Rajiv Gandhi Equity Saving Scheme (RGESS),  which inspired me to write this post.

Friday, March 25, 2016

Tax Benefits of NRE Accounts (Saving, Current, Recurring or Fixed Deposit)

NRIs (Non Resident Indian) are allowed to open bank accounts in India, and by knowing features and the tax benefit of different types of NRI accounts, you can save a good amount of money. There are three types of accounts an NRI can open in India, NRE (Non Resident External), NRO (Non Resident Ordinary) and FCNR (Foreign Currency Non Resident) account. Out of these three, first two are maintained in Indian rupees and only FCNR account is maintained in the foreign currency of choice e.g. USD, GPB, EURO, SGD, HKD or JPY.

Saturday, March 19, 2016

When do NRIs need to Pay Income tax In India?

One of the most common doubt among every new NRIs mind is whether they need to file income tax returns in India or not. As I told earlier that it's not mandatory to file income tax return in India, but now questions comes when do NRIs need to file income tax return in India? when it's mandatory for NRI to file income tax return in India. I'll try to answer these questions in this article. First thing first, NRI needs to pay tax on any income earned in India Similar to resident taxpayers, the basic tax exemption limit for NRIs are also 2,50,000 for the year 2015-16.

Saturday, March 12, 2016

10 things NRI Should know about Portfolio Investment Scheme (PIS)

RBI has allowed NRIs to invest in Indian stock market by buying shares/convertibles of listed Indian companies in recognized stock exchanges e.g. BSE and NSE, under Portfolio Investment Scheme (PIS) with banks. Many NRI doesn't know much about Portfolio Investment Scheme, Even I didn't know about it some time back. Once I come to know about it I have collected some useful information and I wanted to share that with you guys.

Saturday, March 5, 2016

Employee Provident Fund (EPF) is not Tax free Anymore, 60% of EPF Withdrawals will be Taxed as Income

One of the most important and controversial points of recently concluded Indian budget 2016 is the taxation on Employee Provident Fund withdrawals. Earlier, similar to PPF, EPF was also completely tax-free i.e. whatever amount you invest in EPF, up to 1.5 lakh under the section 80C were deducted from your taxable income. There was no tax on gains made by EPF and maturity amount was also exempted from tax, but not anymore.

Wednesday, March 2, 2016

NRE vs NRO vs FCNR - Which Savings or Fixed Deposit Account NRI should Open

Non Resident Indians, who wants to invest money in India, must first open a saving bank account. This will not only help you to easily remit money to India but also to transfer Indian rupees to your friends, relatives, and parents. You can also pay bills on behalf of parents, recharge mobile phones, pay DTH charges etc. If you have aged parents, then you can really help them to pay their bills online using your Indian Rupees NRE or NRO Saving accounts, I have open NRO accounts for just that purpose. Anyway, there are mainly three basic types of banks accounts for nonresident Indians, NRE, NRO, and FCNR. NRE stands for Non-resident external, NRO stands for Non Resident ordinary and FCNR stands for Foreign currency Non-resident account.