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.