Saturday, July 30, 2016

Does a NRI need to file Income tax if no income in India?

The short answer is No, you don't need to file income tax in India if you have no income but it's very rare that you don't have income. You might not have salary income because you are employed overseas but you could have income as interest generated by bank fixed deposit, rental income generates by your flats in India, a royalty paid to you by your book published and sold in India, dividend paid on your stock market investment in India.

Saturday, July 23, 2016

How to open NRE or NRO account in Singapore - SBI, Kotak, HDFC

If you are an Indian staying in Singapore and want to open NRE or NRO account with Indian banks like SBI, Kotak, HDFC, ICICI, Yes Bank, Axis Bank, or foreign bank with Indian operations like DBS bank, then you have a couple of options with you. The first and most convenient option is provided by the biggest bank of India, the SBI (State Bank of India). SBI Singapore provides the facilitation services for Non-resident Indians (NRIs) to open NRE, NRO, and FCNR B account right from Singapore.

Saturday, July 16, 2016

Buying Health Insurance for Parents or Elderly People? Remmeber these Points

In the last couple of articles, I have told you why health insurance is important for parents and what are the tax benefits you get by buying health insurance for your family and parents (see here), but I have not shared any tips about buying the right health insurance. In this article, I am going to fill that gap. If you are buying health insurance policy for your parents e.g. your month or father, you should consider following 7 points before finalizing any health insurance policy.

Saturday, July 9, 2016

5 Tax Saving Schemes not available to NRIs

If you have been filing your income tax returns in India then you know that there are a lot of tax saving options you can use to claim tax deductions and exemptions under a various section of income tax law of India. For example, section 80C allows both resident and non-resident taxpayer of a deduction up to 1.5 lacs from their gross taxable income. This can substantially reduce your tax liability by bringing down your total taxable income into lower income tax slab rates. Unfortunately, not all tax saving schemes available to the resident taxpayer are available to NRI e.g. there are almost 13 ways to save tax under section 80C, which I know, there are more but many of them are not available to NRI taxpayers. In this article, I'll let you know the difference in tax deductions and exemptions applicable to NRI and resident taxpayer.

Saturday, July 2, 2016

How to reduce TDS on NRO Fixed Deposit using DTAA?

In last article, I told you that you can use the DTAA (Double Tax avoidance Agreement) to prevent double taxation of same income in two countries. Since most of the NRI pay their taxes in their country of employment or resident, they can also take advantage of DTAA to reduce TDS on NRO fixed deposits held in India, both private and public sector banks. Since banks are suppose to withhold tax of 30% plus applicable surcharge and cess in terms of the provisions of section 195 of the Income-tax Act, you end up paying very high TDS up-to 30.9% on NRO fixed deposit, which is enough to wipe out 1/3rd of your interest.