Friday, March 31, 2017

Can you send money from abroad to a normal Indian savings account, will it be taxable?

One of the frequently asked questions by people going abroad is that, whether they can send money to a resident saving account in India or not? Will that be taxable? The answer to this question depends upon whose resident saving account? For example, if you send money from abroad to a normal saving account of your parent, spouse, or children then it will be considered as a gift from Income tax perspective and gift to parent, spouse, and children are not considered as income in India, hence they will not be taxable.   But, if you send them to somebody else’s normal saving account then it will be considered as their income and they are liable to pay income tax on that.

Wednesday, March 1, 2017

Pros and Cons of Public Provident Fund (PPF) Account for Tax Saving

If you are an Indian, I am sure you must have heard about Public Provident Fund or PPF, one of the most popular long-term saving scheme backed by the government of India. If not about PPF, then definitely about EPF, Employee Provident Fund, it's big brother. Since EPF is sort of mandatory and your employer deduct some portion of your salary apart from his contribution, it's not something you worry about. By the way, if you want to check your EPF account balance, you can see it here. PPF investment is a similar product for any citizen of India through NRI can not open PPF account in India, it's only for residents of India. PPF allows you to save some money, reduce your taxable income and grow your investment with safety guarantee from the government on India. It also gives you a decent interest rate of 8.7% per annum, compounded annually.