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On 23 February 2018, the DEA released an official memorandum dismissing the earlier notification regarding  NRI Public Provident Fund   account. Previously, on 3 October 2017, it was notified that if a resident possesses an existing PPF account, it should be deemed closed on the day the resident acquires the non-resident status. The February 2018 memo offers a temporary relief to NRI’s. The memo keeps its earlier notification in abeyance. Now if you have already invested in a PPF, you are able to continue with the same until any further notice. Read more: Long Term Capital Gain (LTCG) tax for NRIs It is a known fact that an NRI cannot invest in PPF. However, if you have already invested in a PPF, and subsequently changed to the NRI status, your account can still run until its maturity. The PPF is a 15-years long scheme and can be extended by 5-years blocks, indefinitely. However, for you, an extension is out of question unless you get the resident status back b...

The  Long Term Capital Gains (LTCG) Tax   is real. The 2018-19 Union Budget came as a blow to equity   mutual fund investors  and   stock investors   when the Finance Minister Arun Jaitley proposed to levy a tax of 10% on LTCG equity funds beyond Rs 1 Lac and on unlisted non-equity funds. It also levies a 20% (with Indexation) tax on listed non-equity mutual fund units. Before delving deeper into managing your equity portfolio and implementing tax-efficient strategies, it is imperative to learn the facts about this tax. 1.  10% tax without indexation benefit will be levied on the LTCG coming from the sale of equity mutual funds and equity, and those that have been held for over a year 2.  1 lac or less earned in LTCG in a year is tax exempt 3.  Tax is applicable only on sale of equity that happens after March 31, 2018 4.  LTCG that is accumulated till January 31, 2018 is exempt of this tax Investors in retail were acti...

If you are an NRI, your   taxability  depends on NRI status for a particular year. Checkout the 5  income tax rules   that you must know: 1.  You must pay tax on  all incomes  that arise or accrues  within or is received in India.  Therefore, your Indian salary, interests earned from FD’s and savings accounts, rental earnings, capital gains on all assets sold within India, are taxable income. If your earnings are more than the basic exemption limit for the particular year, you must file a return in India. Again, if you intend to claim a tax refund, or carry forward your losses to future years, you must file a return. 2.  If you return permanently to your country after being abroad for few years, your earnings overseas do not become taxable immediately. If you have lived out of the country for nine years or more, you remain an  RNOR (Resident but Not Ordinarily Resident)  for the next two years. It is the transit...