Can You Withdraw Money from PPF account before Maturity?

Can we withdraw money from the PPF account before maturity?
One of the most common questions people ask before opening a PPF account is "can we withdraw money from a PPF account before maturity?". One reason for this question is the long tenure of the PPF account (15 years). The short answer to this question is Yes, you can withdraw money from PPF before 15 years but you can only withdraw a maximum of 50% of the balance at the end of the fourth year, and that too only after completing 5 years. This means for the first 5 years you cannot withdraw any amount from PPF.

10 Benefits of NRE Bank Account and Fixed Deposits

If you are an NRI (Non-Resident Indian) then you have access to a unique bank account called NRE (Non-Resident External) account which allows you to keep your money in Indian rupees. This account then further allows you one of the best, fixed deposit investment options known as NRE fixed deposit, which currently provides fixed and interest rate e.g. 8.75% from Deutsche bank, resulting in a cumulative yield of 10.3% for a 5 years NRE fixed deposit. It's not just the Deutsche bank but other private and public sector banks like SBI, ICICI, HDFC, Kotak Mahindra, YES Bank they all provide very good returns on NRE fixed deposits.

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? In this article, I am going to share key differences between ELSS vs. PPF vs. NSC, and  Tax Saving Fixed deposits with both private and public sector banks. Once you know the differences, you can make an informed decision where to put your money depending upon your goals and risk appetite.

Selling Properties in India? Rules Every NRI should Know

NRIs are allowed to buy and sell properties in India, and they can also bring the profit post-sale of their property abroad, but there are a couple of things which you need to learn and remember. For example, you need to know that the sale proceeds amount can only be deposited into your NRO account and not on your NRE account.  There are many similar points that every NRI should know and remember before selling their ancestral or self-bought properties in India. I have tried to list a couple of them in this article. If you have any suggestion or any other essential things which are not on this list, please suggest in comments.

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 Regulator 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.

Should you take personal loan/ balance transfer Overseas and Pay off a home loan in India?

This is one of the most frequently asked questions among Singapore NRI community. I often receive queries from IT professionals working in the city-state who have home loans back in India and thinking to pay off in full or a portion of them by taking a personal loan or credit card balance transfer in Singapore. Well, the idea to take a loan to pay off another loan only make sense if you are getting a cheaper loan and paying off a higher interest loan. Since most of the home loans in India charges around 9.5 to 11% in INR and you can get personal loan on credit card also known as balance transfer in Singapore for as low as 2.5% for 6 month it make a lot of sense to take a personal loan in Singapore and pay off your home loan in India, though there are some risk which you need to consider. For examples, this only make sense if you have the visibility that you will be in Singapore for next 6 month or more.

Is Aadhaar card Mandatory for NRI?

Ever since the income tax department of India made it mandatory to linked PAN card to Aadhaar card and ask every taxpayer to quote Aadhaar card number into the income tax return, many NRIs become worried. The reason was simple, most of them don't have Aadhaar card, but now Aadhaar card seems mandatory even for applying for PAN card. As far I know, from 1st July 2017 you cannot apply for PAN card without Aadhaar and without PAN card you cannot do a transaction involving more than 50,000 INR. So does this mean Aadhaar Card is mandatory for NRIs, PIOs, and OCI card holder?

Best Family Floater Health Insurance Plan in India - LIC vs ICICI Lombard vs Bajaj Allianz Policies

I was searching for good health insurance plans for my family recently when I come to know about these "family floater health insurance plans". I have not heard this term before, so I did a bit of research about family floater plans and the benefits of taking this type of medical insurance and was surprised to know that now you can cover almost all members of your family with just one health insurance plan. This is a big relief because you don't need to buy and maintain separate health insurance plans for different family members, in just one insurance policy you can cover yourself, spouse (wife or husband), children, parents (mom and dad), etc.

NRI's Guide to Banking, Income Tax, Aadhaar Card, and Investment in India - Rules, Regulations and Eligibility

As an India citizen, it's important for an NRI to know it's rights and responsibilities, especially about finance, tax, banking, and investments. When I first moved abroad I have absolutely zero knowledge of any of these with respect to Non Resident Indian and I even thought that NRIs are those who are once a citizen of India but now they have citizenship of other countries, I was totally wrong. Slowly I learned a lot of things about who is NRI and what changes when a resident Indian becomes an NRI and this post is a collection of those points.

Difference between Public and Employee Provident Fund - PPF vs EPF

People often mistook Public Provident Fund or PPF for Employee Provident Fund or EPF, though both are provident fund and backed by the government of India, they are independent of each other. The main difference between PPF and EPF is that former is totally controlled by you and only you can make a contribution on that account, on the other hand, EPF is for both you and employer to contribute money.

3 Best bank to open SGD/HKD NRI or FCNR Fixed Deposit? DBS vs ICICI

If you are living and working in Singapore or Hong Kong and thinking to open FCNR (Foreign currency Non-resident) fixed deposits in Singapore and Hong Kong dollar i.e. SGD or HKD then, unfortunately, you don't have many choices as not all Indian banks provide facilities to open FCNR fixed deposit in SGD and HKD. Most of the Indian banks supports 6 major foreign currency for FCNR deposits e.g. USD, GBP, EURO, JPY, AUD, and CHF. Even, the biggest bank of India, the SBI doesn't support SGD or HKD as foreign currency for FCNR deposits. then you should consider DBS bank's FCNR fixed deposit option.

10 Important Custom and Baggage Rules for NRIs - Indians Returning from Overseas

India is getting prosperous and foreign trip are not a privilege only rich people had in the past. Nowadays, many middle and upper-middle-class  Indians  are traveling abroad for holidays, vacations, honeymoons, study and just for work to nearby countries e.g. Singapore, Malaysia, Dubai, Thailand etc. Apart from the hassles of getting Passport and VISA, one more thing which bothers many Indians is the customs rules and the worry about what they can carry back to India without paying customs duty while shopping overseas.

6 Reasons to invest in National Pension Scheme for Retirement Savings

Retirement Planning is very important in the age of nuclear families and western culture. There was time when Indians never bothered about Retirement Planning or Insurance because they trust that their children particularly Son will take care of them both financially and emotionally, but with nuclear families its not possible anymore. Many elders are living alone nowadays and hence Retirement planning is essential for a relaxing and rewarding retired life.

FCNR Deposit Interest Rates USD - ICICI vs SBI vs IDFC vs Kotak vs Axis Bank

Hello guys, FCNR term deposit is very hot at the moment. As I said in my last post it Right time to invest in FCNR deposit, it's the perfect time to get much better interest rates on foreign currency in India than abroad. If you consider USD interest rates, then Indian banks are offering up to 5.53% interest rates for five years deposit, this looks awesome. No wonder, many NRI are opening NRE accounts to hold FCNR term deposit. This increase in interest rates is mainly to save sliding rupee from further slowdown. In an effort to improve rupee's value, RBI allowed Indian bank to offer better FCNR rates and increased competition among them to lure

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.

How to Save More Tax by investing in National Pension System India

Good News for all income taxpayers of India, including NRIs and PIOs who pay income tax in India. Now, they can reduce additional 50 Thousand INR on taxable income by investing in the National Pension System (NPS) 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.

How to Open PPF Account Online on SBI and ICICI Bank in India

Online PPF Account with SBI and ICICI bank India
Now you can open PPF or Public Provident Fund account online in India with ICICI bank and State Bank of India (SBI). This is a major step to increase popularity of PPF or Public Provident fund account among individual especially youngster who love convenient of net-banking from office or home. All major financial and saving product like fixed deposit or FD,  recurring deposit or RD and mutual funds are already available online, which means hard to choose PPF account over these personal saving instruments. Now since PPF account is also available online you can get all benefits of PPF account with the convenience of net-banking in India.

What is 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.

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

How to Check if Your Aadhaar is Linked with Bank Accounts Online? Free Aadhaar Status Checking Tool

Hello Guys, welcome to the last post of 2017 in NRISavingsFunda and what could be the better topic than "linking Aadhaar" to close out the year. In this article, I'll show you how to check the status of your Aadhaar and bank account linking status online. The whole 2017 can be dedicated to Aadhaar linkage.

Why NRI should use Portfolio Investment Scheme (PIS) to buy shares in Indian Market?

If you know, NRIs are allowed to invest in Stock Market in India i.e. they can purchase and sell shares in Stock Exchanges (Secondary Market) as well as they can buy stocks on Initial Public Offering (IPO), the Primary Market. Unfortunately, not many NRI knows about Portfolio Investment Scheme or PIS. It's a scheme of RBI under Schedule 3 of Foreign Exchange Management Act 2000 which allows NRIs to purchase and sell shares and convertible debentures of Indian companies on a recognized stock exchange routing such purchase/sale transaction through the account with the designated bank branch e.g. ICICI bank.

Do NRIs need to Link Insurance Policies (LIC) with Aadhaar?

If you hold an insurance policy in India, get ready to link it with Aadhaar. After bank accounts, PAN card, and mobile phones, it's time for insurance policies to be updated with Aadhaar number. Many NRIs have bought Life and Health Insurance policies in India, mostly when they were residents, so, the big question is do NRIs need to link their insurance policies with Aadhaar card?

Why Invest in Atal Pension Yojna for Guaranteed Pension?

The Government of India has announced a new scheme called Atal Pension Yojana (APY).  The APY is a guaranteed pension scheme and is administered by the Pension Fund Regulatory and Development Authority (PFRDA), which also administer the NPS or National Pension Scheme.  But unlike NPS, where NRIs are also allowed to invest and open an account (see here), Atal Pension Yojna is only for residents of India and that too for Indian citizens only.

How much TDS is deducted on Bank, Company and NRO Fixed Deposits?

TDS stands for Tax deducted at source, is income tax levied on interest earned by Fixed deposits. The rate on which TDS is applied varies, depending upon, whether the Fixed deposit is with a bank, a company or the post office. TDS also depends upon total interest earned on a financial year. For bank Fixed deposits, TDS is triggered when interest earned in a financial year (1 April to 31st March) is higher than 10K and for company fixed deposit or post office deposit, TDS triggered when interest earned on a financial year is more than Rs 5000.

Can NRI buys properties in India? Flats, Residential Plot, or Commercial Shops?

Yes, Under the exchange control law, NRIs are allowed to buy property in India except for agricultural land, farm house or any plantation property. This means NRIs can buy flats, bungalows, residential plots, and landed properties, both freehold and on the lease.  NRIs are also allowed to buy commercial properties e.g. shops in India. They can also purchase a residential house which is ready or possession, under construction or available on resale. NRIs can even take NRI home loans for the purchase of a plot of land allotted by a society/development authority.

Is NRO Account Taxable in India - Saving and Fixed Deposit

Yes, NRO account is taxable in India. Both interests earned on NRO saving account and NRO fixed deposit are taxable under income tax law of India at the rate of 30% plus applicable cess and surcharge, which comes around 30.9%. Compared to resident saving account this quite high and enough to wipe out one-third of your interest earned in NRO account. This means you should not put additional money on NRO account especially avoid remitting money to NRO account, instead send money to your NRE account because interest earned on NRE account is not taxable.

20 Best Practices for Making Payment with Cheques

One positive side-effect of Digitalization of financial services and Bank is increasing cashless transaction, be it by using Debit card, Credit, Card, Mobile Wallets e.g. Paytm, or cheques. If you look at all of them Cheque is probably the oldest way of doing the cashless transaction and after Demonetization it's important has increased more. Even though cheques are there from a long time, I have found people afraid of issuing cheques, partly due to a fear that it can be misused. Someone can change the amount or account number or copy their signature etc.

Which Documents Required for opening Sukanya Samriddhi Yojna Account In India? [List]

If you are eligible to open Sukanya Samriddhi Yojna account, as per eligibility criterion showed here and decided to open a sukanya samriddhi account then, accept my congratulations. It's a great decision to secure future of your daughter. Now, coming back to formalities, in general, you will need following documents to open an SSY account:

Where to Open Sukanya Samriddhi Account In India? Bank vs Post Office and List of authorized banks

You can open Sukanya Samriddhi account with both post office and banks. Initially when the scheme was launched it was only available to Post office but Reserve bank of India has instructed a list of authorized banks to open SSY account, which includes popular banks like SBI, Axis Bank, and ICICI bank. Actually, the list includes many banks from both private and public sector. Unfortunately, you cannot open Sukanya Samriddhi Yojna account online, you must visit banks if you pass the eligibility criterion discussed in my last post. Anyway, here is the updated list of authorized banks which are allowed to open SSY account

Does NRIs need to update Aadhaar on Bank Accounts?

Recently many of my colleagues received an email from their banks e.g. ICICI and HDFC bank regarding their saving accounts to update Aadhaar on their bank accounts, the deadline to link Aadhaar with a bank account is 31st December. If you don't do this then your account will be frozen. Since many NRIs doesn't have Aadhaar card, so what can NRIs do to deal with this situation? Well, this is not required for NRIs.

How to check EPF (Employee Provident Fund) Account Balance Online for FREE

How to find EPF (Employee Provident Fund) account balance online

You can now check your EFF (Employee Provident Fund) account balance online from the comfort of your office and home. No need to endure stress on multiple runs of government office.  In order to check your EPF account balance online, You just need to click below link and enter your EPF also known as PF account number and mobile number and it will display your total EPF (Employee Provident Fund) account balance. Every salaried employee In India who contributes some part of his salary to EPF (Employee provided Fund) have been curious to know his or her EFF (Employee Provident fund) account balance from a long time but going to EPF office and inquiring these details are a troublesome job, given how government offices works in India. 

Can you to Open Sukanya Samriddhi Yojna Account in India? Eligibility Criterion

Ever since Sukanya Samriddhi Yojna account has launched parents are very enthusiastic to open SSY account in the name of their daughter. Many of my friends have asked about whether they can open Sukanya Samriddhi account or not? Do it has some income criterion? I am currently outside India can I open Sukanya Samriddhi account? Can NRI open Sukanya Samriddhi account if daughter is Indian citizen etc. In this post, I will give you overview of who can open SSY account and who cannot by explaining eligibility criterion of Sukanya Samriddhi account.

Why Invest Money on Equities, Stock or Mutual Fund? Is it worth it?

Many people ask me whether they should invest money in stocks or mutual fund or not? I say, you should invest at least some part of your money into equities because it is the only investment which can beat inflation in the long term. It's not that investing in equities will guarantee superb returns because there are periods and even extending up to 5, 10, 15, 20 and even 25 years where equities have delivered negative, no returns or very poor returns. For examples in Japan, Equities has not really been the best performing asset class in last twenty years. Nikki, index of Tokyo stock exchange was around 39K on December 1989 and where it is now, around 15K, after touching lows like 7K and 8K during 2001 and 2009. What this mean, if you have invested in Index you would have one-third of your money by now, forget about getting any interest.

Why Capital Protection is as Important as Capital Appreciation

There is a wise saying that "one penny saved is one penny earned". This is true even in the world of investment and saving. In today's volatile world your gain on equities or other investment options e.g. bond or fixed deposit can quickly erode due to depreciation in currency. This is what happening currently in India, with rupee depreciating to record low and inching towards physiological 1 USD = 83 INR, talk of capital protection is gaining momentum over capital appreciation. Since everybody focuses on capital appreciation and that is also the main objective of saving and investment, but if you don't pay enough attention to what happening around the world, you may quickly lose all your appreciation. If you are an NRI, who has positions on Rupee e.g. may be with an investment in equities or real estate, you can understand that with falling rupee, all those capital appreciation quickly erode.

Foreign Bank or Indian Banks? Which offers more interst on NRE Fixed deposts?

Recently one of my readers asked me that he wants to invest some money on NRE fixed deposits but confused on whether to go for foreign banks like Citibank, DBS, Standard Chartered, Deutsche Bank or Indian banks like ICICI, Kotak, HDFC, SBI, Axis Bank or Union Bank? I asked him, whether he has any existing NRE saving account, he says he doesn't have any existing NRE saving account? Then I ask him what is more important for you? the interest rate or convenience? and his answer was the interest rate.

Can you break NRE fixed deposit Prematurely? ICICI vs SBI vs HDFC vs Kotak

One of the common questions amount NRI investor putting their money on NRE fixed deposit is whether they can close the NRE fixed deposit before maturity or not? and if breaking the NRE FD is allowed then what is the penalty? This is a very good question and every NRI should ask this to himself or anyone suggesting he open an NRE fixed deposit account.

Yes, you can close the NRE fixed deposit before it gets matured but interest will be calculated at the rate applicable for the period the deposit has actually remained with the bank and you might need to pay the penalty as well, which varies from bank to bank e.g. ICICI bank has different penalty than HDFC or Kotak Bank.

Does Interest on NRE Fixed Deposit is Taxable?

In short, No, interest earned on NRE fixed deposit is tax-free in India. If you are an India working abroad and earning in foreign currency, you have a couple of more investment options available than to a resident customer. If you keep your money or some part of your money in India, NRE fixed deposit is the best option for you.

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 a 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 accounts right from Singapore.

Difference between Resident and NRI Fixed deposit India

As the name suggests, Resident Fixed deposits are for Residents of India and NRI fixed deposits are for Non-resident Indians but remember both are for Indian Citizens. Indian banks, both private banks e.g. ICICI, HDFC, Kotak, Citibank, DBS, Deutsche, Axis bank and public sector banks like SBI, Bank Of Baroda, Union bank offers both resident and NRI fixed deposits, but they usually have different interest rates. A resident can only open the resident fixed deposit, you just need a saving account for that. For opening NRI fixed deposit, you need either NRE or NRO saving account.

Should you Invest in Gold Mutual Fund or ETF as Rupee is falling down?

Well, I am not an analyst, who can say that whether it's right time to invest in gold or not, but since I am a common man like many others, which follows some simple rules while investing money and follows principle of diversity, I made to think that is it right time to buy Gold? Well, many people will say, YES, buy gold, the price is lower from the peak, invest in gold, it's the perfect time to buy gold etc. It's natural to think like that, and everybody can think like that, which makes me a little worry, because if everybody can guess anything, which means there is not much value on that task. So in my opinion, it's not the best time to buy gold, at least for some time, except the Systematic Investment Plan (SIP)  part, which always continues, despite market conditions.

Does it Right time to Invest in FCNR deposits on Indian Banks- SBI, ICICI, AXIS bank, Kotak

With Rupee falling every day and touching a new all-time low of almost $1 to Rs 83, many of NRI Indians are asking this question, is it a right time to transfer money to India or is it the right time to invest in FCNR deposits on Indian banks. If you have transferred dollars to India recently, many are just a fortnight ago, you might be regretting your decision to miss this increase in exchange rates. But there are many Indians, which are also thinking to take advantage of both increase in exchange rates as well as high-interest rates offered by Indian banks. 

Why Invest in Sukanya Samriddhi Yojna scheme? Benefits and features

PM Modi has launched several good financial schemes e.g. Atal Pension Yojna to provide retirement solutions to many peoples from un-organized sector, PradhanMantri Jan Dhan yojana to open bank accounts for poor, Pradhan Mantri Suraksha Yojna to provide the cheapest insurance to Indian citizens and my favorite Sukanya Samriddhi Yojna to save money for your daughter's education and marriage. It's one of the best, government-backed saving and investment option you will find, I guess only PPF is close matched to it, but this is only for parents with a girl child. If you have a daughter aged less than 10 years, you can open a Sukanya Samriddhi account for her in your nearest post office which provides investment option. The key feature of this account is slightly higher interest rate it offers in comparison of Personal Provident Fund account.

When do NRIs Needs to Pay Income tax In India?

One of the most common doubts 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 an income tax return in India, but now questions come when do NRIs need to file an income tax return in India? When it's mandatory for NRI to file an 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.

5 Tax Benefits of taking NRI home loans in India

Many NRIs buy property in India by taking NRI home loans, but when it comes to tax saving, most of them are not sure whether they are eligible for any tax saving in India or not. They just earned in abroad and replay the home loan by their NRE/NRO account without thinking of tax deductions available under income tax law of India for home loans. Many banks, which provide NRI home loans e.g. ICICI, HDFC, State Bank of India, Axis bank, Federal Bank, Bank Of Baroda and other non-banking financial institution like Tata capital, LIC Housing or HDFC itself doesn't tell you anything to NRIs about how they can save taxes while paying their home loans in India.

3 Ways to avoid TDS on Bank Fixed Deposit

One of the bad thing about Fixed deposits are TDS, i.e., tax deducted at source. If you don't pay attention to TDS or doesn't do enough to prevent or avoid TDS, you could lose the right amount of your interest income to banks. I have many friends who never care about TDS, they think that their bank fixed deposits are getting excellent interest at least 8.5% per annum, only to find out that interest earned is also taxed at the rate of 20% as TDS due to not furnishing PAN details.

Top 3 Income 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 the right 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, the 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.

10 Points NRIs should know about Income tax in India

Many NRIs are not aware of income tax laws in India and doesn't know whether they have to file income tax returns in India or not. Sometimes they also wonder, do they have to include income earned in the USA as well or only income earned in India would be taxable? Other doubts which come in minds is whether interest earned on NRE, NRO, and FCNR deposits should be counted as taxable income or not. What about long term equity gains?

How to Calculate Long Term Capital Gain on Property/House Sale With Indexation Example.

Yes, both NRIs and Resident can remit the money obtained by selling properties in India, but you have to take a couple of things in your mind. For example, the sale proceeds amount must be deposited into NRO account, it cannot be deposited into NRE account. Similarly, you may be liable to pay the short term or long term capital gains while selling the property situated in India. If you are selling the property within 3 years of purchase then you need to pay short-term capital gain and if you are selling the house after 3 years then you have to pay long-term capital gains I India. In case you have inherited the property then the date of purchase and price of purchase of the previous owner will be used for calculation.

Is it Mandatory to declare Foreign bank Accounts and Assets in Income tax return by NRI?

One of the common doubt among NRIs who are filing their income tax returns in India is to whether to declare foreign bank accounts and assets or not. I often receive comments and questions whether it's mandatory for an NRI to disclose the foreign bank account details and an asset on income tax returns? The short answer is No. It's not mandatory for an NRI to disclose or mention its foreign bank account details while filing income tax returns in India, but you need to be sure about your residential status.

Is it Mandatory for NRI to File Income Tax Returns in India?

Does it necessary for NRI to File Income Tax Return in India?
One of the most common doubt every NRI has is whether its mandatory for them to file incomes tax return in India or not? Short answer is, it depends. If you are a Non Resident Indian for a financial year let's say 2022-23 i.e. you stayed outside India for more than 182 days then your status becomes NRI and you don't need to file an income tax in India if you don't have any income generated in India. Even if you have income in India, you can file Income tax returns but you are also eligible for basic exemption limit which is currently 2.5 lakh in India, which means probably no need to pay any tax, but yes, paying tax and filing income tax returns are two different thing. You may be required to file income tax return even if you don't need to pay any tax, for example if you want refund for the TDS deducted on fixed deposit and various other sources. 

Can You break FCNR Fixed Deposit before Maturity? [Answered]

Due to high interest rate offered by Indian banks for NRI customer there is a lot of interest on FCNR and NRE Fixed deposits and I am receiving query like can I break my FCNR deposit before maturity almost everyday now. 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 it's 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 a premature withdrawal penalty before opening an FCNR fixed deposit.

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 to as SWIFT transfer is an electronic transfer of money from one financial institution to another 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 funds from one bank or credit union account to another.

How NRIs can Invest in NRO Tax Saver Fixed Deposit for Tax Saving under 80C

If you are an NRI and have income in India like rental income and your annual income is more than 2.5 lakh, the basic exemption limit then you can reduce your taxable income by investing in an NRO tax saver fixed deposit. NRO tax saver Fixed Deposit has 5 year lock-in period and it will be eligible for tax deduction under Section 80C of Income Tax Act, 1961. Investment in NRO tax saver FD also given NRIs an opportunity to diversify their investments in addition to other investments permitted in Section 80C like ELSS, PPF(Public Provident Fund), NSC (National Savings Certificate), or NPS (National Pension Scheme). 

4 Benefits of Investing on Tax Saving Equity Mutual Fund

Hello guys, if you are looking for a long-term, tax-saving option to put your hard-earned income then you have come to the right place. While there are a lot of tax-saving options available to NRIs and Indians in India there is none that can beat inflation and give you handsome returns. I am not talking about crazy returns many people got on investing in Bitcoin and Ethereum, they are not for everybody but a more modest but realistic and safer 10 to 15% return in the long term. If you think that makes sense then learning about the Equity Tax saving fund can help you.