Friday, August 19, 2016

How to open NRE or NRO account from overseas Online - ICICI, HDFC, Kotak, YESBANK

Nowadays, opening an NRE or NRO account from overseas has become quite easy with online application form and free pickup services offered by many Indian public sector and private sector banks. Almost all major banks including public sector banks likes SBI, Bank of Baroda, Union bank of India, Federal Bank and private sector banks like ICICI, HDFC, Axis Bank, Kotak Mahindra Bank, YESBANK, and foreign banks operating in India e.g. DBS, Standard Chartered, and Deutsche bank all allows you to fill the account opening form online and many of  them have free pickup service or local PO box services to collect the completed application form and necessary documents. Some banks even provide complete paperless process for NRI and PIO of certain countries e.g. you can open ICICI NRE bank account completely online if you are living in USA. Similarly, HDFC bank also has collection boxes in many countries e.g. Singapore, USA, UK, Canada, UAE where you can submit the filled application form along with necessary documentation.

Saturday, August 6, 2016

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. As per income tax law, a person can be either Resident and Ordinary Resident (ROR), Resident and Not Ordinarily Resident (RNOR), or Non Resident (NR). If you fall into the first category then YES it is mandatory for you to declare your foreign income and assets because you are not an NRI in that financial year for income tax purpose, but if your residential status is either NR or RNOR then it's not required for you to declare your foreign bank account details in ITR.

Saturday, July 30, 2016

Does a NRI need to file Income tax if no income in India?

The short answer is No, you don't need to file income tax in India if you have no income but it's very rare that you don't have income. You might not have salary income because you are employed overseas but you could have income as interest generated by bank fixed deposit, rental income generates by your flats in India, a royalty paid to you by your book published and sold in India, dividend paid on your stock market investment in India. Though, it's not mandatory for an NRI to file income tax in India there are certain scenarios when NRI has to file income tax even if they don't have any salaried income. In this article, I'll share some important details about Non Resident Income tax, which I think every NRI should know. It's very  basic information but I have seen many Non-resident doesn't know about it, especially the young breed of IT people who has just been on their first trip to the United States or Europe.