Non-residents of India (NRIs) often talk to their financial advisor or legal consultant on how to save money. Taxes take away the major part of the income, which is a true pain. It seems like a horror story that never ends.
After reading this blog, they can get to by far the easiest ways to save tax money for investment. So, here we go. 1. Equity linked Saving Schemes (ELSS) ELSS shines through the pain that tax oftentimes take along with. The shortest yet mandatory lock-in period is a silver lining that attracts superior returns. That’s why the experts call it one of the best investment tips. However, they won’t get privileges, as the resident folks get under Section 80C of the Income Tax Act. For instance, PPF account or making a new investment in NSC is what the natives have as an exclusive plan for making and saving money. On the flip side, non-residents cannot make it to a new plan. Rather, they have to stick to the old PPF account, if one has it before immigration. Talking about the benefits, emigrants can put their currency in this scheme to draw interest around 11 percent per annum, which is way far than mere 6 to 7 percent of NRE or NRO or FCNR deposits. This percentage can touch up to 19.35 percent if the currency is parked there for 5 years. Whatever interest they get, it also attracts tax. On other plans, it could be a little over 30 percent on the interest rate of other deposits. Capital gains on these schemes are available on long term plans, i.e. for 3 years at least. And, the deposits can be started from INR 1 lakh to desirable limit, which levies just 10 percent tax. One can open it through a simple KYC procedure at first, which is also available online. Submit address proof or the country where you live together with legal documents like VISA and passport. If you cannot make it to your personal presence, you have In-person verification (IPV) alternative to verify your identity on call. Even, you can send those documents via courier to complete the KYC. 2. Unit Linked Insurance Plans (ULIPs) Like ELSSs, the emigrants with Indian passport are free to get an insurance policy, which later saves on taxes being paid. However, the experts take it as an investment offer instead of a tax saving plan. 3. Mutual Funds (MFs) These involve risk tolerance factor, as its profitability quickly scrolls up and down. It means there is a big uncertainty of getting some fruitful interest. Now with some stringent FATCA & Securities Exchange Commission Regulation policies in place, investment in securities won’t be feasible. However, there are UTI AMC, PPFAS, Sundaram AMC, DHFL and a lot more that are in the flow of accepting investments from Indian diaspora in Canada and the USA. If you want to figure out what you’re likely to get from, S2NRI has the best NRI investment tips. You can get to know about what is exclusive and advanced.
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