Saturday, July 28, 2018

What is difference between an NRI and a PIO?

Though both NRI and POI are used to refers Indians living and working abroad and they have more or less similar rights to open a bank account, buy properties in India and restrictions e.g. not allowed to buy agriculture lands, there is some difference in terms of citizenship and origin. NRI stands for Non Resident Indian, whereas PIO stands for Person of Indian.

An NRI is an Indian citizen who stays outside India:
(a) for purposes of carrying out employment or any business or vocation;
(b) under circumstances indicating an intention to stay outside India for an uncertain duration;
(c) any Indian citizen deputed outside India for a temporary period in connection with employment

Sunday, July 22, 2018

The Best Tax Saving Option In India - ELSS Mutual Fund (Equity Linked Saving Scheme)

Many people so much effort to earn money, but they don't put even 10% of that to save money from taxes and expenditure. In my post 10 ways to save money, I have talked about some general saving tips, now here you will learn how to save income tax by investing money in the mutual fund. Though there are many ways to save income tax in India, some of them I have mentioned in my post 13 ways to save tax under section 80C and today we'll talk about one of them, called ELSS. It is a special type of mutual fund which stands for Equity Linked Saving Scheme, money invested in it is exempted from income tax. You can save up to one lacs of money by purchasing ELSS mutual fund. Imagine, you have a package of 10 lacs INR, which puts you on the higher side of income tax rates, by putting some money on ELSS scheme, your taxable income automatically reduces, which sometimes can benefit from lower tax rates as well.

Sunday, July 1, 2018

Can NRIs Open NPS (National Pension Scheme) Account in India - Tax Saving Investment

Yes, NRI can now invest in NPS or National Pension Scheme in India. Recently, on July 2015, PFRDA, the Pension regular has clarified that Non Resident Indians (NRIs) can invest in National Pension Scheme (NPS) to save for their retirement and get a social security cover. Earlier, there was some confusion whether NRIs are allowed to put money on NPS or not, but given that NRIs are allowed to invest in mutual fund and insurance, RBI and PFRDA give clarification that NPS is also an eligible investment for NRIs.