Category: Uncategorized
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Understanding Traditional and Roth IRA in USA
Traditional & Roth IRA are amongst the most popular self-funded investment options in USA after the 401k which is an employer provided plan. I have already written earlier about 401K (Understanding 401K Plans) and today, I am sharing my knowledge and learning about broad features of Traditional and Roth IRA. Features of Traditional IRA Contribution…
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How NRI can save tax on interest income from fixed deposits in India
Recently, I received a query from Ramesh (name changed), an Indian citizen shortly moving to UK for a long term assignment. He has till now invested some good amount fixed deposits in India from which he is earning regular interest income of say Rs. 5 lacs every year. Now, his query was First steps while…
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Som Datt [ITAT]: Onus is on assessee to prove that distribution from an offshore trust is not taxable in India
Many HNIs create offshore discretionary private trusts with an aim to achieve succession planning goals and escape tax liability in India. However, there is a lack of clarity on taxability of distributions received from these trusts. In this light, there has been an interesting decision given by ITAT Kolkata bench in case of Som Datt…
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How NRIs can manage currency risk in their investment portfolio
In the past few weeks, we’ve seen China devaluing its currency, US Federal Reserve not increasing its rates and a steady depreciation of INR against USD. As a fall out and knee jerk reaction to such events, there has been a sharp increase in NRI remittances to India to benefit from a weaker rupee (news…
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Understanding IRS Passive Foreign Investment Company (PFIC) Rules & Implications
Many US NRIs have plans of returning back to India and thus wish to invest a good chunk of their money in Indian mutual funds. There might also be a case where a resident Indian who has invested a good part of his portfolio in India actually goes to USA on say an H1B and…
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Understanding 401K Plans in USA
Today lets discuss about the 401k Plans which are very popular in USA and found in the investment portfolio of most of the returning NRIs coming from USA. In the USA, there are two types of employer-based retirement plans available: defined benefit (where the money that you get on retirement is defined) or defined contribution…
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How NRIs can invest in Indian equity markets
India’s growth story is compelling especially when seen in comparison to other emerging economies and developed markets. So, if you’re a returning NRI and wish to be part of the growth story, one of the ways to invest in Indian economy is to invest in equity shares. Though I am hugely in favour of investing…
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Capital and Current Account Transaction as per FEMA
Lot of times, there is confusion whether a particular transaction is allowed as per FEMA regulations or not. And it is here that that it is important to first establish whether the account is a capital account transaction or a current account transaction under FEMA. In FEMA, each transaction has to be classified as either…
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How NRIs can create Emergency Fund
An emergency first is the first layer of defence in anyone’s financial portfolio against sudden financial requirements like medical emergencies, job loss, sudden payments etc. Though I had some years back written a post on emergency fund Link, when it comes to NRI, the situation is slightly different. As an investment adviser, in course of…