Let me answer the second question first to convince you why a returning NRI would like to find out whether he is a resident or a non-ordinarily reside (RNOR)? Well, there is big tax benefit of filing income tax return in India as RNOR i.e. Resident But Not Ordinarily Resident, unlike ROR (Resident and Ordinarily Resident) whose global incomes in taxed in India e.g. interest earned on foreign currency fixed deposit kept abroad or in FCNR account or in RFC account in India, RNOR is asked to pay tax only on income earned in India.
Friday, December 30, 2016
Thursday, December 22, 2016
Yes, Under the exchange control law, NRIs are allowed to buy property in India except for agricultrual 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.
Tuesday, December 20, 2016
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.
Saturday, December 17, 2016
One positive side-effect of Demonetization 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.
Thursday, December 15, 2016
One of the important question among Indians going abroad or NRIs returning from overseas to India for a good is to check their residential status to see whether they qualify as an NRI, an RNOR or an Ordinary Indian Resident in the current and future financial years. Why it is important to know the residential status? Well, it's quite important from income tax perspective because if you are an NRI or RNOR (Resident but not Ordinarily Resident) then you don't need to pay tax on your global income, which include interest earned on NRE fixed deposits and FCNR fixed deposit. Instead, you only have to pay tax on income earned in India.
Monday, December 12, 2016
The Indian Customs limits on the amount of cash anyone can carry from abroad to India is different for Indian currency (INR) and foreign currency e.g. US Dollars, Pound or Yen. The cash limit for traveling in India is also different for how much you can take to India and how much you can bring from India, also known as i.e. import and export cash limits of India. In this article, we'll take a look at current limits by Indian Customs on the amount of cash both Indian citizen and foreigner can carry to and from India.
Saturday, December 10, 2016
NRI Demonetization FAQ - What NRI/PIOs should know about Demonetization of Rs 500/1000 Notes In India
It's been almost a month since our honorable prime minister Mr. Narendra Modi surprised both India and world with his one of the boldest decision to scrap the Rs 500 and Rs 100 notes and took out almost 86% of currency in circulation. This move has been now the center of discussion from last month and world is divided on whether it's a good move and help the economy or a bad move which put India in a chaotic situation.
Tuesday, December 6, 2016
After Donald trump's victory and historic onRupee demonetization in India, many of my friends working in living me asking the question whether now is the best time to send money to India from the USA? Well, it certainly looks so. The USD/INR exchange rate is at all time high of 68.34 and very likely to go to 70, so it definitely sounds the best time to send money from India to the USA.
Saturday, December 3, 2016
NRIs have finally started sending Rs 500/1000 Notes in Flights with Colleges/Friends due to Demontization
After waiting for almost a month for a better alternative to exchange old Rs 500 and Rs 1000 notes overseas after the announcement of demonetization of Rs 1000 and Rs 500 notes on 8th November 2016, NRIs seems to start accepting their fate and started sending cash with friends and colleagues traveling to India before 30th December.