#nri fd account

[yogeshsalvi]

NRE Fixed Deposit - Explore ICICI Bank's Non-Resident External Fixed Deposit Account for NRI Services

NRE Recurring Deposit Account - The NRE RD account stands out as an excellent option for NRIs seeking substantial savings through modest monthly investments. Easily transfer funds from your NRE Savings Account to capitalize on this opportunity.

[samarthcapital]

What are NRI Investment Options in India?

Imagine this: you've built a successful life abroad, but a piece of your heart remains in India. You yearn to connect with your roots, contribute to the nation's growth, and secure a brighter future for yourself and your loved ones back home. This is where NRI investment in India comes in, offering a bridge between your global journey and your Indian heritage.

As an NRI, navigating the investment landscape in India can seem daunting. But worry not! With the right guidance and a plethora of attractive options, you can embark on a fulfilling investment journey in the land of your origin.

Samarth Capital, your trusted partner for NRI services, is here to illuminate your path. We understand your unique needs and aspirations, and we're committed to providing comprehensive support every step of the way.

Let's explore the diverse avenues for investment in India:

1. Fixed Deposits (FDs): Seeking stability and guaranteed returns? FDs offer a safe haven for your investments. Choose from NRE (Non-Resident External) accounts for foreign earnings or NRO (Non-Resident Ordinary) accounts for Indian income. Both options provide attractive interest rates and tax benefits under certain conditions.

2. Mutual Funds: For those seeking diversification and professional management, mutual funds are an excellent choice. Invest in a variety of equity, debt, or hybrid funds based on your risk appetite and financial goals. Remember, mutual funds involve market risks, so careful research and expert guidance are crucial.

3. Indian Stock Market: Experienced investors with a high-risk tolerance can explore the Indian stock market through the Portfolio Investment Scheme (PIS). Invest directly in shares or opt for Exchange Traded Funds (ETFs) for broader market exposure. Remember, stock market investments are subject to significant volatility, so proceed with caution and a clear understanding of the risks involved.

Unlocking the Potential: How Samarth Capital Can Assist You

If you want to access the Indian stock market, it is crucial to know how to open NRI demat account. Samarth Capital's team can simplify this process, guiding you through the documentation and regulations. We also offer personalized investment advice, portfolio management, and tax planning assistance to ensure your journey is smooth and successful. Remember, investment is not just about financial returns; it's about building a meaningful connection with your homeland. With the right guidance and a trusted partner like Samarth Capital, you can turn your aspirations into reality, bridging the distance and investing in a brighter future for yourself and India.

[digitalbankingindia]

NRE vs FCNR Deposit: Which Is Better?

Fixed Deposits are a secure investment option in India, providing assured returns to investors. This safety makes an FD a preferred and popular choice among individuals who want to grow their money in the long run but have a low-risk appetite. However, FDs are not limited to resident Indians only. Non-resident Indians, too, can choose from various NRI FDs.

These include the Non-Resident External or NRE Deposit, Non-Resident Ordinary or NRO Deposit, and Foreign Currency Non-Resident or FCNR Deposit. NRE and FCNR FDs enable NRIs to save and invest their foreign earnings. However, they are different from each other and serve varied purposes. So, if you have a tough time choosing and are clueless about the differences, the following pointers should help:

What is an NRE FD?

An NRE FD lets NRIs invest and grow their foreign earnings in India. The deposits made in this account in foreign currency are automatically converted into Indian Rupee or INR at the prevailing exchange rates. The investment is maintained in INR during the entire duration and earns interest at competitive NRE FD rates. Some essential features of this FD include the following:

The principal sum and the interest earned on NRE FDs are tax-free in India.

NRIs can freely and fully repatriate the interest and principal amount to their country of residence overseas.

Since the investment is in INR, it is open to risks associated with fluctuating forex rates.

You can open an NRE FD independently or hold it jointly with one or more NRIS. You can also assign a nominee to your NRE FD.

You can choose from flexible tenures lasting from one to 10 years when opening an NRE FD.

What is an FCNR FD?

An FCNR Deposit allows NRIs to invest their overseas earnings in permitted foreign currencies and earn interest during the term of the deposit. Since you can invest in this type of Fixed Deposit in a foreign currency, you do not run the risk of exchange rate fluctuations. Some essential features of this deposit include:

Most banks enable you to make deposits in popular foreign currencies like the US Dollar, Singapore Dollar, Great Britain Pound, etc.

You can choose from tenures ranging from one to five years.

Typically, the deposit amount has no minimum or maximum limits.

The principal sum and interest earned are fully and freely repatriable in an FCNR Account.

The interest earned on an FCNR Account is exempt from Income Tax in India

Which should you choose?

Opening an NRE FD is better for those investors who wish to invest their foreign earnings in India in hopes of using it to manage their expenses in India. An FCNR Deposit Account is a better investment decision when NRIs want to address investment-related issues and expenses outside India.

[lawyer2ca]

OVERVIEW OF THE REVISED LIBERALISED REMITTANCE SCHEME

- Lawyer2CA

Wealthy Indians who have been legitimately keeping their funds outside of the country are facing problems with the revised Liberalised Remittance Scheme (LRS) regulation.

Earlier, an Indian resident was allowed to remit up to US $250,000 or its equivalent per financial without any restrictions but now we see significant changes in the LRS in terms of inserting some restrictions and disincentives.

The revised LRS regulation restricts wealthy Indians from keeping their money parked in offshore bank accounts for more than six months.

Funds remitted under LRS may be kept in bank fixed deposits however such FDs cannot be held beyond 180 days as placing funds in bank deposits will not be considered an “investment” of funds. The income earned on investments abroad should also be invested abroad within 180 days, or these should be remitted back to India.

This is a retrospective amendment and hence applies not only to fresh remittances but also to the existing funds lying abroad which were remitted before 24th August 2022.

A person cannot borrow funds in India and remit them abroad for investments as these have to be made out of a person’s own funds. Borrowing funds even from a non-resident is prohibited although extending loans to non-residents is allowed. Indian residents are allowed to give gifts and loans to NRI/PIO relatives in rupees in their NRO account.

Transactions allowed without any threshold limit include remittances for:

-Emigration expenses

-Medical expenses

-Educational expenses

Investments in gold bonds are not permitted as it amounts to a corporate bond. In fact, buying physical gold or other precious metals outside India is also not permitted under LRS.

Prohibited transactions include remittances from the following:

-Lottery tickets, gambling, banned magazines, etc.

-Countries identified by FATF as non-cooperative countries

-Margin trading (derivatives and options)

-Trading in foreign exchange

Once a person is a non-resident, the funds outside India are not liable to FEMA restrictions. Hence the condition of repatriating the funds within 180 days will not apply.

It is necessary that the investment should be made in the proportion in which the funds are remitted i.e., the ownership ratio in the asset should be commensurate with the ratio in which payment is made.

TCS has been increased from the existing 5% to 20% for remittances made under LRS w.e.f. from 1st July 2023 and the threshold of INR 7,00,000/- has been restricted only to cases where remittance is for the purpose of education or medical treatment.

The concessional rate of 0.5% where remittance is out of education loan remains the same after the amendment.

It appears that the government does not wish to encourage remittances under LRS. Hence it is making remittances costlier. Before making remittances, one should carefully understand the implications and then go ahead with the remittance.

[gwcindia]

DISCOVER THE HIDDEN BENEFITS OF A DEMAT ACCOUNT AND HOW TO GET STARTED TODAY!

Introduction:

Are you a novice investor trying to navigate the complex world of stock trading and investments? If yes, then you have probably heard of a Demat account. A Demat account is an essential tool for buying and selling shares in the stock market. This blog will discuss what a Demat account is, its benefits, and how to open one.

What is a Demat account?

A Demat account (De- materialized Account) is a digital account that holds your securities in electronic format. It is similar to a bank account that has your money in digital form. In a Demat account, you can hold shares, bonds, mutual funds, and other financial instruments in an electronic form.

People often get confused between a Demat and a Trading account. The stocks are purchased in a trading account, while the proofs/ certificates of this purchase are stored in a Demat account.

What is the Use of a Demat account?

The primary use of a Demat account is to facilitate the easy and efficient trading of shares. Instead of holding physical share certificates, which can be easily damaged, lost, or stolen, Demat accounts allow you to keep your securities in electronic format. It also eliminates the need for tedious paperwork and simplifies the trading process. Nowadays, possessing a Demat account is mandatory if you desire to participate in trading or investing activities involving securities in the stock market, specifically on NSE and BSE. Your Demat account number must be provided for the electronic settlement of trades and transactions.

Demat Account Opening Process: 

Choose a Depository Participant (DP) - The first step to opening a Demat account is to select a DP. A DP is an intermediary between you and the depository (where your securities are held). With Goodwill, the Demat account opening procedure becomes easy and free.

Complete the account opening form - After selecting a DP, you must complete an account opening form. The form will ask for personal details, bank details, and other relevant information.

Submit required documents - Along with the account opening form, you must submit some documents like identity proof, address proof, and a PAN card copy.

In-person verification - Once your account opening form and documents are submitted, the DP will conduct an in-person verification (IPV) to verify your identity.

Account activation - After completing the IPV , your Demat account will be activated, and you can start trading.

Types of Demat Accounts

After understanding the definition of a demat account, let's examine its various types. Generally, there are three types:

Normal Demat Account: This is for in-country residents who are citizens of India.

Repatriable Demat Account: For non-resident Indians (NRIs), this type of Demat Account facilitates the transfer of funds overseas. However, an NRE bank account must be connected to this kind of Demat Account.

Non-Repatriable Demat Account: This is also for NRIs. However, it does not allow for international financial transfers. Furthermore, it must be connected to an NRO bank account.

Benefits of a Demat account:

Apart from simplifying the trading process, Demat accounts have many hidden benefits. One of the most significant advantages of a Demat account is that it is a safe and secure way to hold your securities. It eliminates the risk of theft, forgery, and damage associated with physical share certificates.

Another advantage is that Demat accounts allow you to access your securities from anywhere, at any time. You can view your portfolio, track the performance of your investments, and receive dividends directly into your bank account. Like bank FDs, you have the option to add nominees to your Demat account.

Conclusion:

In conclusion, anyone wishing to invest in the stock market needs a Demat account. It simplifies the trading process, eliminates the need for paperwork, and offers a safe and secure way to hold your securities. With the steps outlined above, you can easily open a Demat account in Goodwill with the least brokerage and the best brokerage calculator. Start investing today! Click here to get started.

[propertyexperttips]

Funds Received In NRE Account May Be Taxable - A Must Watch For NRIs

As per the Indian tax laws, an NRI is liable to pay income tax in the country only on that income which has accrued or arisen in India.

Since an NRE account holds only that income that has been earned overseas and not in India; it remains completely tax-free.

This means that both the interest earned on an NRE FD and NRE savings account is not taxable as per the provisions of Section 10(4)(1) of the Income Tax Act 1961.

However, it must be noted that the primary eligibility criteria to maintain an NRE account and to earn tax-free interest income is that the person should qualify as an NRI in the first place under the Foreign Exchange Management Act (FEMA).

[differhome]

How can NRI invest in India/ best ways of investments for NRIs/.... = #differhome #www.differhome.com

#differhome #www.differhome.com

NRI can invest in India in various ways, including the following:

Real Estate: NRIs can purchase residential or commercial properties in India.

Stock Market: NRIs can invest in Indian equities and bonds through a portfolio investment scheme (PIS) account, which is maintained by a designated bank in India.

Fixed Deposits: NRIs can invest in fixed deposits (FDs) with Indian banks.

Mutual Funds: NRIs can invest in Indian mutual funds either through a repatriable or non-repatriable scheme.

Government Bonds: NRIs can invest in government bonds issued by the Indian government.

It's important for NRIs to stay updated with the latest regulations set by the Reserve Bank of India (RBI) and to seek professional advice from financial advisors before making any investment in India. They should also consider factors such as currency fluctuations, tax implications, and repatriation restrictions while making their investment decisions.

More info #differhome

#instagram.com/differhome/

[sbmbankindia]

Are NRE and NRO Deposits Same or Different?

NRIs who want to keep their India-based earnings in India, usually hold either NRO or NRE accounts. These are fairly popular deposit options exclusively available to them, giving them a good rate of return and placing their funds in India. This article will look at what NRE Fixed Deposit and NRO Fixed Deposit accounts are and how they are different from each other.

NRE Account- NRE is an acronym for the Non-Resident Rupee/External account. An NRE Fixed Deposit Account is where the Indian residing overseas makes deposits from there and sends the same in an Indian account. The money after reaching gets converted into Indian currency (Rupees).

NRO Account:- An NRO Savings account is a Non-Resident Ordinary Rupee Account, usually opened by an NRI to manage the income in any form (like rent, pension, or other types of dividends) that is earned in India.

How are NRE and NRO accounts similar/different?

1. Tax Exemption

The interests earned from NRO fixed deposits and credit balances are taxable at a rate that is higher than the domestic FD tax rates. Wealth and gift taxes are also applicable to such interests.

The interests earned from NRE fixed deposits are not taxable; hence, they are completely tax-free.

2. Repatriability or Transferability

Individuals with NRO FDs are not allowed to transfer the principal investment; only the interest earned (net of applicable taxes in the financial year) can be transferred to a foreign account.

NRE fixed deposit allows full repatriation of funds including both principal amounts and earned interests to the foreign accounts.

3. Joint accounts

An NRO account can be opened jointly with an NRI as well as an Indian resident. NRE fixed deposits can be opened jointly with another NRI but not with an Indian resident.

4. Deposits and Withdrawals

An NRI can only deposit funds in an NRO account if they are originating in India, and ultimately in his/her NRO fixed deposit. Hence, transferring funds from abroad for the same is also not allowed.

However, the transfer of funds from the NRE account to the NRO account for the same is allowed.

Although, you cannot open NRE fixed deposits by transferring currency from an NRO account.

Regardless of the deposition, all withdrawals can only be done in Indian currency.

5. Interest Rates

Although the rates of interest may vary for NRE and NRO FD accounts according to the banks, usually, they are offered with maturity between 1–20 years.

6. Proneness to Exchange Rate Fluctuations

The NRE FD Accounts are prone to the risk of conversion loss and exchange rate fluctuations regarding the value of the Rupee against the foreign currency. However, there are no such risks involved with NRO FD accounts.

There is no “better” option when you’re going to choose from these accounts. You can go for an NRE FD or an NRO deposit account as per your need, keeping in mind if you want to park your foreign earnings in an Indian account or park the funds earned from India.

[pancardcanada]

Pan Card Apply Online: How to Apply for PAN Card Online

Pan (Permanent Account Number) is a unique10-digit alphanumeric code gave by the annual expense office through which critical data with respect to a person's assessment of paying capacities and pay status can be tracked.PAN card is substantial for a lifetime and is significantly allocated to those covering charges. The IT office keeps a record of the equivalent and is an indispensable ID Proof that is mandatory to open a ledger, apply for a charge or Mastercard, apply for an advance, open a FD (Fixed Deposit) or an RD (Recurring Deposit), pay for protections and for some other monetary exchange started by the person.

Pan card can likewise be benefited by organizations and association firms and is required for everybody petitioning for annual assessment discounts. Anybody, minors, understudies, NRIs can benefit the PAN card and connection it with their financial balances for its recipient components.

TIN-NSDL (Tax Information Network – National Securities Depository Ltd.) is a named element by the Income Tax Department, Government of India which facilitates the application cycle of PAN Card from the solace of your home. Regardless of whether the solicitation is identified with another utilization of a PAN Card or an application to make revisions in a current PAN Card, TIN-NSDL is consistently at its best to help in helping the general society of India in their administrations.

Various sorts of PAN card

Pan cards can be benefited by any person of all ages and circles, any organization, trust, business firm, so, any substance. In any case, it should be noted here that the variations of Form 49 gave and gave by the public authority are to be utilized for an assortment of purposes. here we can momentarily rattle off the sorts of PAN cards that can be benefited.

Dish card for Individuals

Dish card for Non-Resident Individuals or People of Indian Origin

Pan card for Foreign Companies/Corporates paying duty in India

Pan card for Indian Companies/Corporates

Pan  Card for Overseas Citizens of India (OCE) and Non-Resident Entities (NRE)

Significance of PAN Card

While we as a whole know at this point that it is compulsory to hold a PAN card significantly for documenting charge discounts, let us presently harp on a portion of the other key uses and favorable circumstances of the PAN card.

Recording Tax Returns

Business Registration

Monetary Transactions

Utility Connections

Opening Bank Accounts

Pan  Card Eligibility

As per the segment 139A of the personal assessment act, the accompanying substances are commanded to get allocated a PAN card:

Any person who has or is at risk to pay an assessment to the Income Tax Department.

Any individual doing a business or any expert practice which brings to him a yearly turnover of more than Rs 5 lakh or really during any of the long stretches of appraisal.

Any sorts of beneficent associations, trusts, and affiliations.

According to the Income charge act or some other common law, any merchants and exporters at risk to pay any type of assessment.

The installment can be paid utilizing net banking, portable financial utilizing charge or Visa or by essentially drawing an interest draft towards NSDL – PAN, Mumbai.

Supporting Documents Required according to administer 114(4) of Income Tax Rules, 1962:

To apply for another PAN Card:

For Indian residents (people):

Personality Proof – Photocopy of any of the Government-gave character records like Aadhaar Card, Voter ID, Arm's permit, Pensioner card with the person's photo.

Address Proof – Photocopy of any of the followng: Electricity charges, Landline bills, Broadband bills, Passport, Driving License, Matriculation Certificate, Aadhaar card, Domicile Certificate gave by the Government.

Date of Birth Proof – Photocopy of any of the accompanying records: Birth Certificate gave by the Municipality or any approved position, Matriculation Certificate, Passport, Driving License.

Aadhar Card Copy (If referenced as a proof report)

For Non-Indian Citizens (people):

Personality Proof – Photocopy of the Passport, PIO, OCI Cards gave by the Government of India, other public or citizenship Identification Number properly validated by the 'Apostille' or Indian Embassy or High Court or even the Consulate where the candidate is arranged.

Address Proof – Photocopy of the Passport, PIO, OCI card gave by the Indian Government, NRE financial balance proclamation in India, Registration declaration gave by the FRO, VISA without a doubt, arrangement letter from any Indian organization, ledger articulation of the candidate's private country.

In the event of alterations/revisions:

Dish Card duplicate or a distribution letter

Evidence of the change that has been mentioned – model, the difference in name, change of father's/spouse's name, change of date of birth, and so on

Significant Points to consider while filling the structure:

There are important variables to be mulled over while filling the structure; in any case, the solicitation can be ended by the specialists:

No Abbreviations ought to be utilized in the name (aside from center name)

No prefixes ought to be utilized like Shri, Dr, Col, and so on

In the event of an application for an extraordinary case who is a minor or a mentally powerless individual, RA subtleties – Representative Assessee ought to be joined

Confirmation of Identity, address, and date of birth should convey precisely the same subtleties as indicated in the application structure with no variety.

Steps to apply for a PAN Card Online – utilizing TIN – NSDL:

A PAN card can be applied in two different ways, the helpful and mainstream online technique, and the substitute route for those distant to the web, the disconnected strategy.

We in the following, not many advances will examine the interaction of online utilization of PAN cards.

Stage 1 – Visit the authority site of NSDL – http://www.pancardcanada.com/, and the individual should go to the administration's segment

Stage 2–Fill in the important subtleties on the structure as asked keeping the manual human test code as asked and other pertinent subtleties. At that point click on Submit

Stage 3–The Next Page will request significant data that ought to be kept convenient prior to filling the structure:

Pertinent Documents to apply for a PAN Card (as examined above) utilizing e-KYC or virtual endorsements.

Enter insights about contact subtleties, address, and type of revenue of the candidate

Imperative insights regarding the Assessing Officer (AO) to comprehend the duty ward the candidate meets all requirements for (information found on the actual site)

Transfer character advertisement KYC archives, photo, mark, and snap-on Submit.

Stage 4 – The necessary installment should be paid, and the versatile number should be checked to utilize an OTP.

Stage 5 – A receipt will be given, which conveys the 15-digit affirmation number (which should be noted). The equivalent ought to be presented on the NSDL office by means of post/messenger subsequent to marking it.

How to follow PAN Card Application Status?

The 15-digit affirmation ought to be appropriately noted down as this will help the candidate in following the status of the PAN card through:

The PAN deals with the monetary statuses as well as fills in as a character verification holding the exceptionally summed up and fundamental data like:

Name of the cardholder

Name of the cardholder's dad

Date of birth

Dish number (extraordinary 10-digit alphanumeric mechanized code)

Mark of the cardholder

Photo of the cardholder.

Pan Card is an essential archive that is considered responsible for practically the entirety of the exchanges made by a person. It is required for the citizens to approach a PAN card. By and large like TDS and other assessment-related situations, anybody difficult to reach to a PAN card needs to pay higher rates and pass up the different focal points offered by the association. It additionally falls under the obligation of all dependable residents to have straightforward exchanges and help the public authority from charge fakes.

also read:- apply for pan card Joliet

[nolobankblog-blog]

Best FD rates for NRIs 2020

Choosing the right fixed deposit option that is hassle-free and at the same time increases wealth is of utmost importance for NRIs who are looking for smart investment opportunities to grow their savings. We understand that this process can become confusing, given there are a multitude of options to choose from. Here's a list to simplify the process and help NRIs pick a fixed deposit option with the best interest rate offered by banks.

First, let us begin by understanding what Fixed Deposits essentially are. A Fixed Deposit is a financial instrument that is offered by banks or NBFCs to domestic citizens as well as Non-Resident Indians (NRIs) that provides them a higher rate of interest than a regular savings account, until the given maturity date. In this article, we shall focus on the number of fixed deposit options that NRIs can choose from and their respective interest rates -

There are two major types of Fixed Deposits which are offered by banks to NRIs. They are –

NRE Fixed Deposits – These FDs offer several benefits to the NRE Fixed Deposit Account holder and are one of the most common options to choose from. It gives NRIs an opportunity to convert their foreign earnings into Indian currency denominations, deposit them as savings and earn high rates of interest offered by the bank. Moreover, both the principal and interest earned in this type of FD is tax-free (tax-exempted interest income under section 10(4) of the Income Tax Act) and can get repatriated to the account holder’s country of residence. An NRE Fixed Deposit Account can be opened jointly with other NRIs and offer flexible tenures that may range from 1 year to 10 years. Also, NRE FDs are covered under the DICGC insurance (Deposit Insurance and Credit Guarantee Corporation).

NRO Fixed Deposits – NRO Fixed Deposits are mainly opted by NRIs to manage and invest any earning that is obtained in the form of Indian Currency, be it rent money or interest payments. Unlike NRE FDs, Income tax applies to the interest earned on principal amount in the NRO account and the interest rates of NRO deposits are usually the same as domestic deposits. Moreover, an NRO account can be jointly held with an Indian Resident as well, as long as the Indian Citizen falls under the category of a relative (according to Section 6 of the Companies Act, 1956).

Let us now compare the Fixed Deposit rates offered by different banks –

Bank Name Rate of Return (p.a)

North Loop - 7.50%

ICICI Bank - 6.20%

Kotak Mahindra - 6.20%

Punjab National Bank - 6.30%

State Bank of India - 5.90%

Bank of Baroda - 6%

HDFC - 6.15%

Axis Bank - 6.40%

RBL Bank - 7.20%

Yes Bank - 7.25%

UCO Bank - 6.10%

Canara Bank - 6.15%

HSBC - 5%

Standard Chartered - 6.50%

Indian Bank - 6.10%

Central Bank of India - 6.10%

IDFC First Bank - 7.25%

Indusind Bank - 6.65%

IDBI Bank - 6.30%

It is best to invest in a bank that offers the highest FD rate of return, and NRIs who take this decision wisely can invest their idle savings in a lucrative manner to grow their wealth and also diversify their portfolio.

North Loop

offers an industry highest, 7.50% rate of return on NRI Fixed Deposits along-with the facility of simple online signing up within 5 minutes, ensuring that the banking experience of NRIs is 100% effortless and digital, no matter where they are situated. Moreover, loans can also be obtained on FDs within 24 hours with the

North Loop

digital banking system.

Conclusion 

Investing in Fixed Deposits for Non-Resident Indians can be beneficial in many ways. It is safe, highly secure, offers a high rate of return, and is an ideal option to deposit and save money earned abroad. However, NRIs should be well advised and make rational choices that help them to earn the highest returns.

To grow wealth, increase savings, diversify portfolios and get industry-leading FD rates, you can

Sign up with North Loop

(7.5% rate of return) and access an all-in-one financial hub through your mobile phone. North Loop advocates borderless banking and provides an ultimate digital experience for all banking needs.

[legal-blogs]

The Best Ways to Save Income Tax in India for NRI

Tax planning is one of the most effective ways to reduce taxes you have to pay on income earned during a particular year. Income tax law allows deductions for a variety of investments, savings schemes, and expenditures. Listed below are the major tax deduction schemes in India that can help you save income tax. In accordance with the Income Tax Act, the following options are available for tax savings when you want to go for the NRI tax in India:

Section 80C investments

For NRIs (Non-Resident Indians) and local taxpayers, these are the most popular tax-saving options. The Income Tax Act allows you to deduct up to Rs. 1.5 lakh in a financial year on various investments and expenses.

Investing in 5 year tax-saving FDs can give you a deduction of up to Rs. 1.5 lakh. Fixed deposits, whether domestic or NRO, are taxable in India. Under Section 80C, NRIs can also claim a deduction up to Rs. 1,50,000 on interest earned on NRO fixed deposits. 

An investment in a public provident fund can save you income tax, since it provides a deduction of up to Rs. 1.5 lakh under section 80C. A public provident fund is a government program available at most banks and post offices. PPF accounts generally have a 15-year lock-in period. 

PPF accounts cannot be opened by NRIs, but if you opened the account before becoming an NRI, you can still hold it until maturity.

National Saving Certificate:  The NSC is a fixed income scheme that offers a variety of tax advantages. The current NSC interest rate is 6.8%, compounded yearly. Investments and interest earned under Section 80C are tax deductible. NSC account holders who become NRIs while the account is in operation can continue the account till maturity on a non-repatriable basis.

ELSS Funds: One of the most popular investment options for investors is equity-linked savings schemes (ELSS). An equity-oriented mutual fund invests at least 80% of its assets in equity. ELSS funds can be invested in by both residents and non-residents in India to reduce taxable income. LTCG tax is applied to the returns of such funds at a rate of 10%. The maximum deduction you can claim in a financial year is Rs. 1.5 lakh. NRIs and normal residents alike are eligible for the 80C tax exemption. 

LIC premiums: The premiums for life insurance are tax deductible up to Rs. 1.5 lakh. Deductions are available for ULIP premiums, term insurance premiums, and endowment policy premiums as long as the insurance cover exceeds 10 times the annual premium. 

National Pension System (NPS): NPS is a government-backed retirement fund, and contributions can be deducted up to Rs. 1.5 lakh. Pension contributions can also be made by NRIs.  

Employee provident fund: A contribution to the Employee Provident Fund (EPF) counts towards the Rs. 1.5 lakh limit under Section 80C.

Home loan repayment: Until Rs. 1.5 lakh per year, the principal repayment on a housing loan is tax deductible.

Tax savings schemes other than Section 80C

You can also save on income tax by utilizing various deductions under Section 80 of the IT Act in addition to deductions under Section 80C.

Medical insurance premium: Those who pay premiums for medical insurance under Section 80D can deduct up to Rs. 25,000. Senior citizens can deduct up to Rs. 50,000. Those who pay premiums for themselves as well as their senior citizen parents can claim a combined deduction of up to Rs. 75,000 per year. 

Interest paid on home loan: The interest on a home loan is tax deductible up to Rs. 2 lakh per year under Section 24 of the Income Tax Act. A deduction of up to Rs. 50,000 can also be claimed on home loan interest under Section 80EE. 

Income through NRE account interest: Foreign earnings of NRIs can be deposited in an NRE account in India. NRE savings accounts and fixed deposits earn tax-free interest in India. Non-residents can therefore save on income tax by investing in NRE accounts. 

Charity to notified organizations: Tax deductions are available for charitable donations. Donations to charitable organizations are tax deductible up to a certain amount. You can donate 50% of your donation to NGOs and up to 10% of your adjusted total income to NGOs.  

Thus, you might have now got an idea on the ways to save money when you are paying the NRI tas in India. Ensure you are following the right guidelines and these ways to reduce the tax payment cost. 

FAQs

How is income classified?

There are five main types of income - salary, capital gains, business or self-employment income, residential property income, and other sources.

Is it possible for NRIs to reduce their Indian taxable income?

Residents and NRIs alike can reduce their taxable income in India through a variety of investment schemes:

– Tax-saver NRO FDs

– ELSS Funds

– National Pension System

– NRE accounts

– Home loan repayments

In India, can NRIs invest in mutual funds to save taxes?

Mutual funds in India can reduce NRIs' taxable income in India. Invest in tax-saving mutual funds. There is a tax rebate of up to Rs 1,50,000 available to investors in Equity Linked Savings Schemes (ELSS).

In addition to 80C, what other deductions are allowed?

There are some other provisions that allow tax deductions besides Section 80C:

Section 24: Interest paid on home loans may be deducted up to Rs. 2 lakh.

Sections 54 – 54F: Exemptions from long-term capital gains from property (54), and other assets (54F).

Section 80D: Premiums for self, family members, and dependent parents.

Section 80EE: For first-time homebuyers paying interest on their home loan.

Section 80EEB: For the payment of an electric vehicle loan.

Section 80G: For charitable donations.

Rent deduction under 80GG if HRA is not included in your income.

Section 80TTA: You can deduct up to Rs. 10,000 from your savings accounts or bank deposits.

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Benefits of Investing in Nri Fixed Deposits: 5 Points to Know!

Investments are key to creating capital assets. Whether you are handling a business or aiming to increase your wealth, making timely investments go a long way in maintaining financial stability. Fixed Deposits help non-resident Indians establish a capital source in India for real estate investments. Recently, there has been a spike in NRI investments in India like NRI Fixed Deposit, since FDs provide you with an assurance of earning returns.

It is not a market-linked instrument. However, the same is not the case with stocks where market fluctuations can cause a decline in the investment yield.

Benefits

FDs are considered a smart option thanks to their better performance in providing returns and interest rates. Many NRI investors are using FDs as a means of increasing their capital and then utilising them for the purchase of real estate. Here are its benefits:

Regular cash flow

The NRE FD provides a regular and convenient cash flow to investors. It enables you to maintain a healthy stack of capital in the country without hassles. You can select the desired investment amount and tenure while earning returns in the form of interest payments. However, you cannot prematurely withdraw funds from it.

Higher interest rates

The NRI FD rates are attractive for individuals on the hunt to diversify their investment profiles. Nowadays, banks offer various products to investors, whether resident or NRIs on online platforms. Also, their interest rates are higher than the conventional Saving Accounts.

Risk-free

FDs are risk-free investments. The investors get assured of receiving a healthy return without the risk of a crash or decline of stocks. You attain your financial goals without compromises and lead a secure future. The only point to note is that if the interest is higher, the returns expected are also more, and vice-versa.

No market fluctuations

FDs are not affected by market fluctuations. Some other investments like Mutual Funds are prone to changes according to market trends and create uncertainty and a doubtful atmosphere for the investor. Besides, you can also invest in the NRO FD if you want to store funds in India in Indian Rupees.

Tax exemptions

The NRI FD Account is eligible for tax exemption in India and the returns earned are also tax-free. They provide flexible investment terms for up to five years. The interest on prematurely withdrawn Resident, NRO, NRE, and FCNR Deposits gets paid for the period of holding at the rate prevailing on the date of placement or the contracted rate, whichever is lower, subject to a deduction of a 1% penalty.

Closing thoughts

Opening an FD using the NRO or NRE Bank Accounts by simply putting a request to the concerned authority. These strategies are becoming popular and increasing the scope of real estate in India.

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How to save income tax in India (for NRI and Resident Taxpayers)

One of the most effective ways to save on tax payments on income earned in a given year is to plan your tax payments appropriately. Income tax act allows deductions for a variety of investments, savings schemes, and expenditures. Through these major tax deduction schemes, you can save nri taxation in india.

Getting a lower TDS certificate and saving tax can be accomplished by scheduling a call with an NRI tax expert.

12 simple ways to save income tax in India

Tax savings options available under various sections of the Income Tax Act include:

1.     Investment options under Section 80C 

2.     These are the most popular tax-saving options for both NRIs (Non-Resident Indians) and local taxpayers. An investment or expense can be deducted up to Rs. 1.5 lakh under Section 80C of the Income Tax Act.

3.     Investing in tax-saver FDs allows you to get a deduction of up to 1.5 lakh rupees. It is taxable in India to earn interest on both domestic and NRO fixed deposits. Thus, NRIs who earn interest on NRO fixed deposits can also claim a deduction of up to Rs. 1,50,000. 

4.     The public provident fund (PPF) allows deductions up to Rs. 1.5 lakh u/s 80C, so you can invest in one to save income tax. Public provident funds can be accessed at most banks and post offices. It is common for PPF accounts to have a lock-in period of 15 years. 

5.     PPF accounts are not available to NRIs, but if you opened the account before becoming an NRI, you can continue to hold it until maturity.

6.     Investing in National Savings Certificates (NSC) offers many tax benefits in addition to its fixed income nature. Currently, the NSC offers a compounded interest rate of 6.8%. Tax benefits are available under Section 80C on investment amounts and interest earnings.

7.     When an NSC account holder becomes an NRI during the account's lifetime, the account can continue until maturity without being repatriated.

8.     ELSS Funds are one of the most popular ways for investors to deduct their investments from taxes. Mutual funds focusing on equity investments normally invest at least 80% of their assets in equity. India allows residents as well as foreigners to invest in ELSS funds in order to reduce their taxable income.

9.     In such cases, the returns will be subject to LTCG taxes at 10%. It is possible to claim up to a maximum deduction of Rs. 1.5 lakh per financial year. In addition to NRIs, normal residents are entitled to the tax exemption under section 80C as well. 

10.  Life insurance premiums up to Rs. 1.5 lakhs are tax deductible for the premiums of ULIPs, term insurance, and endowment policies as long as the insurance coverage exceeds 10 times the annual premium. 

11.  NPS (National Pension System): You can deduct contributions toward NPS up to Rs. 1.5 lakh from your income. The National Pension Scheme also accepts contributions from NRIs.  

12.  Contributions to Employee Provident Funds (EPF) count towards Section 80C's limit of Rs. 1.5 lakh. Repayment of housing loans can be deducted from income up to Rs. 1.5 lakh per year.

 Tax savings schemes other than Section 80C

Besides deductions under Section 80C, Section 80 of the IT Act provides a variety of deductions for saving income taxes.

Section 80D allows a deduction of up to 25,000 rupees for premiums paid for medical insurance. For senior citizens, this amount is Rs. 50,000. The deduction can be claimed by a person paying premium for himself and for his senior citizens parents up to Rs. 75,000 a year. 

Tax deduction on home loan interest: A home loan interest payment is tax deductible up to Rs. 2 lakh per annum under Section 24 of the Income Tax Act. As part of the regulations under section 80EE of the Income Tax Act, you can deduct interest on home loans up to Rs. 50,000. 

Earnings from foreign earnings deposited in NRE accounts: NRIs can deposit foreign earnings in their NRE accounts in India and earn interest on them. India taxes interest earned on NRE savings accounts and fixed deposits. Non-residents can therefore save income tax by saving funds in an NRE account. 

Those notified of charitable donations are eligible to deduct their donations. A charitable contribution cannot exceed a certain amount in terms of tax deduction. There is a limit of 50% of your donation to NGOs as well as a maximum of 10% of your adjusted household income for most donations.  

Income tax in India can be saved in a variety of ways, but understanding the tax laws can be challenging, especially for NRIs due to a complicated tax system. There is a possibility that NRIs will miss out on deductions and other benefits. We understand the struggle you are facing at SBNRI. 

The SBNRI App lets you connect with our NRI Tax Experts to learn about new TDS and TCS rules for NRIs. Our team will also assist you with the NRI tax filing process from start to finish. 

Moreover, SBNRI will assist you in obtaining a lower TDS certificate in order to reduce the tax payable. If you have any questions, you can also click the button below. More information is available on our blog and YouTube channel.

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Property management company in Pune | Housewise

For most NRIs, the go-to form of investment is real estate. However, one of the major barriers faced that makes them hesitant in investing in properties is the hassle of managing these properties while staying away from India.

However, at the same time, it is also one of the best times to keep investing in real estate in India as an NRI. The Indian real estate sector has always been an investor’s favorite. Here are a few reasons why you should still consider investing as an NRI.

Falling rupee value: With rupee value at an all-time low, real estate investment has become much more affordable for NRIs.

Resurging market: Ever since the pandemic hit, the economy faced many challenges. However, now the economy is growing with appreciating property values and prices.

Reduced interest in other investment tools: NRIs are also known to invest in gold, FD and equity market. Since these options are subject to market volatility, most people are sticking to real estate investment instead of these.

With all of these reasons and more to invest in real estate, if the only thing stopping you is the hassle of managing these properties from abroad, then the solution is right here.

Housewise is a rental property management company in Pune and other parts of India made exclusively for NRIs. With over 4300 properties being managed in 10 cities and for people in 27 different countries, Housewise has 5640 happy clients staying worry-free away from India while reaping all the benefits of their real estate investment.

Housewise has a detailed step-by-step process for managing your property.

Step 1 is fixing an agreement with Housewise to manage or rent out your property.

Step 2 includes the house owner handing over all relevant documents and keys to the designated team from Housewise who will be taking care of your property.

Step 3 will be the search for the best tenants.

Step 4 includes running a background check on the potential client and getting it approved by you.

Step 5 is the rental agreement preparation online or offline for property management Pune or other parts of India.

Step 6 is the final step where the tenant transfers the deposit and monthly rent directly to your (property owner’s) bank account and Housewise will continue to manage your property till the end of the agreement.

So, get the leading property management experts for advanced solutions and a hassle-free investment.

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How to Open a Fixed Deposit Account? Requirements of Fixed Deposit?

The financial market is flooded with investment options in 2022. As safety and guaranteed returns are the most common priority, investors choose fixed deposits over mutual funds and stocks. Considering the current uncertain economic conditions, you must stay updated about the features and benefits of an FD (Fixed Deposit) to maximize your investment.

An FD offers growth, a reasonable interest rate and guaranteed returns at zero risk. And it is a go-to investment tool for investors who lack the risk appetite. The basic process of fixed deposit is that interest is accumulated on your deposited amount over a fixed tenure. You can withdraw the maturity amount and the accrued interest at the end of your FD tenure.

What is Fixed Deposit Account?

A fixed deposit account is an easiest and safest way to invest lump sum money. The FD account is popular in 2022 because it offers a stable interest rate even if the market crashes. As COVID-19 overturned the stock markets, almost all the investors are moving from uncertain investment options to stable investments like fixed deposits. However, the fixed deposit rates may vary from banks to NBFCs (Non-Banking Financial Companies)

Features of Fixed Deposit

Before opening a fixed deposit account, you must know all the features and details behind a fixed deposit account. Here are a few features that can help you understand how a fixed deposit works.

Safe Investment – All the other investment options are subject to change. Contrarily, FDs are reliable and stable throughout your investment period.

Rate of Interest – The interest rate in a fixed deposit depends on the tenure of the FD, i.e. interest rates are higher for longer tenure FD and lower for the shorter tenure.

Flexible Tenure – You can choose your FD's tenure when opening your FD account. And, you can go up to 10 years depending on the tenure available with the banks or NBFCs.

Tax Deduction – According to the Income Tax Act, 1961, interest earned on your principal amount is subject to tax deductions.

Top 5 Benefits of Fixed Deposit

Fixed deposit offers many benefits to investors in 2022. Below are a few;

Your invested principal amount is safe throughout the tenure. And there is no risk involved.

You can prearrange your interest pay-out, i.e., monthly, quarterly, half-yearly and annually or go with the lump sum amount at the maturity.

The interest rates in your fixed deposit are safe from market fluctuations.

Senior citizens are entitled to an extra interest rate on their fixed deposit accounts.

You can get a loan against your FD if you need funds in an emergency.

Requirement of a Fixed Deposit

There are a few essential requirements you have to abide by to open a fixed deposit account. Basically, every Indian citizen and an NRI (Non-Resident Indian) can book an FD in India.

Proof of Identity:

Voter ID Card

PAN Card

Aadhaar Card

Driving License issued by the Regional Transport Authority

Ration Card

Senior Citizen ID Card

Proof of Communication Address:

Utility Bills (telephone, electricity, post-paid mobile bill, or water bill)

Bank Statement with Cheque

Property Tax Bill

Post-Office Issued Identification Card or Certificate, etc.

How to Open a Fixed Deposit Account?

You can open a fixed deposit account both online and offline.

Online – Fixed Deposit Account Opening

The online process is the simplest and the quickest way to open an FD account with a bank or NBFC. However, before opening an FD account, you must use a  FD calculator to find the exact maturity amount you would get at the end of your tenure. So let’s now see how to open an FD account online.

Step 1: Check out the website of the NBFC or bank where you are interested in opening your fixed deposit account.

Step 2: Login using your existing ID or create a new login ID.

Step 3: Select the option “Open FD Account”

Step 4: Add required details like your principal amount, nominee and tenure.

Step 5: Confirm your details and make the principal payment using net banking.

Step 6: Finally, down the receipt and the FD agreement for future reference.

Offline – Fixed Deposit Account Opening

You can open a fixed deposit account by walking into a bank branch. The process to open an FD account with or without an existing account is the same. All you have to do is fill out the FD application form. Then submit identity and address proof to complete your KYC and open your FD account seamlessly.

Opening an FD account is much simpler than choosing the bank or NBFC to invest your FD. Hence, do your research with various banks and NBFCs by comparing interest rates and flexible tenure. Then, make a decision based on your convenience.

Open a Fixed Deposit Now!

Nowadays, from banks, NBFCs to post offices offer fixed deposit facilities. But the clear winner is an NBFC because it provides India's best-fixed deposit rates. Now that you understand how to open a fixed deposit account book an FD with Shriram and start your investment journey towards success.

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Are deposits made in NRE accounts taxable?

Are deposits made in NRE accounts taxable?

I am a non-resident Indian (NRI) living in the US and have a non-resident external (NRE) account with an Indian bank. What are the tax implications for starting a fixed deposit (FD)? Also, what happens if I return to India and become a resident again? — Name withheld on request For NRIs, interest on deposits made in NRE account are not taxable in India. However, when you decide to return to…