Nre On Quotes

A real relationship doesn't properly begin until the NRE burns away. That's when you have to start dealing with this person as an all-around human being, replete with irritating little habits. When disillusion sets in, love can begin.

DE PROFUNDIS (...) De-acuma chiar de m-as zvarli Intr-o vultoare, De mine moarte va fugi Cu coasa-nre picioare. Caci isi va zice-n gandul ei: "Mor toti, - flamandul si satulul... Dar asta are obicei Sa-mi traga chiulul!

Marriage is a technology. And some technologies amplify human abilities, while other technologies restrict them. A lever is a technology that amplifies, while a lock is one that restricts. And all I want to do is turn marriage from a lock into a lever. I want it to enable me to occasionally experience that romantic NRE rush without feeling like a failed spouse.

The five major sources of income which are exempt for NRIs are: Proceeds from Life Insurance Policy - provided the policy complies with the exemption criteria/conditions Dividend from a domestic company or mutual fund scheme - provided the company or mutual fund scheme has paid the Dividend Distribution Tax (DDT), if applicable Interest on an NRE account – provided the NRE account is maintained as per the FEMA rules Interest on FCNR or RFC accounts – provided the account owner is a non-resident or RBNOR under the Income Tax Act Long Term Capital Gain on equity and equity based mutual fund – provided the Security Transaction Tax (STT) has been paid

Mr. Bhagwat, an NRI from France, bought a residential property in 2009-10 for Rs. 10,000,000 out of NRE account. If he sells the property in 2013-14 for Rs. 17,500,000, he is allowed to credit Rs. 10,000,000 to an NRE account up to a maximum of 2 properties. The gain amount of Rs. 7,500,000 will be credited to the NRO account and only after payment of the long term capital gain tax he may remit the funds abroad or transfer it to an NRE account.

Mr. Vishal, an NRI from Malaysia, booked a residential property in India. However, he decided to cancel the booking for any reasons, such as he found another property,  he is not satisfied with the construction progress, decided not to invest in India or for any other reason. If he has paid for the booking amount and any installments from his NRE account, he can credit the refund amount to the NRE account.

While interest on an NRE deposit is exempt from tax, the interest on an NRO deposit is taxable and TDS @ 30% will be deducted. Investment

If you want to invest $10,000, you do not need an advisor. If you want to invest $100,000, you may need an advisor. However, if you want to invest $1,000,000, you definitely need an advisor even for investment in NRE bank deposits. An

Now, if the same SBI bank’s 5 year FD in INR in NRE account yields 9% p.a., it is due to the currency risk only. It

Recommendations: If investment horizon < 1 year and funds in NRE; invest in liquid fund. If investment horizon > 1 year and funds in NRE; invest in NRE FD. If investment horizon > 3 years and funds in NRO; invest in FMP or Liquid Funds. If investment horizon < 1 year and funds in NRO; invest in liquid fund (higher return, same tax). If investment horizon 1 - 3 years and funds in NRO; invest in NRO FD or liquid fund based on NRO FD rates, interest rate environment and other factors. If you are not sure about the investment horizon; invest in liquid fund.

Interest on NRE and FCNR deposits are exempt from income tax in India. However, while explanation 2 of section 10 (15)(iv) mentions that “interest” includes hedging transaction charges on account of currency fluctuation, taxation of gain due to entering into forward contract may not be straight forward.

Deposits with firms and companies Proprietorship or partnership firms and Indian companies are allowed to accept deposits from NRIs on a non-repatriable basis. This means, while deposits can be made out of NRE,

NRE, FCNR, NRO or inward remittances, the amount can only be credited to the NRO account. The company may accept deposits under a private arrangement or public deposit scheme. A non-banking finance company (NBFC) is required to get registered with RBI and follow the RBI guidelines. Any firm or company accepting deposits are not allowed to use the funds for agricultural/plantation activities, real estate business or investing in other concerns engaged in these activities. Also, the funds cannot be used for re-lending (except NBFC) or repatriated outside India.

Loans NRIs can give loans to resident Indians on a repatriable or non-repatriable basis. NRIs can also receive loans from residents. Loan from NRIs in foreign currency or on a repatriable basis A resident Indian can borrow up to US dollars 250,000 from NRI close relatives on a repatriation basis i.e. on repayment, the NRI can credit the funds in an NRE account and take this money back without any restrictions. The NRI should be a close relative of the borrower. Please check ‘Who is your relative’ for details. The amount of loan should be received by an inward remittance or by debit to the NRE/FCNR account. The loan should be a minimum of 1 year and without any interest. The funds cannot be used for agricultural/plantation/real estate business or for relending. Income: As the loan should be interest-free, no income can be generated. Taxability: As there is no income, there is no tax. Loan from NRIs in Indian rupees or on a non-repatriable basis A resident, not being a company incorporated in India, may borrow in rupees from an NRI on a non- repatriation basis. The period of loan should be 3 years or less and the rate of interest should not exceed 2% over the prevailing bank rate at the time of the loan. The loan has to be utilized for meeting the borrower’s personal requirement or for his business purposes. The funds cannot be used for agricultural/plantation/real estate business or for relending or for investment in shares, securities or immovable property. For example, Ms. Isumati has given an unsecured loan to her father’s firm earning 15% interest. If she goes to the UK for further studies and becomes an NRI, while she may continue with the loan, RBI rules would apply. The funds cannot be used for real estate business and if the bank rate is 10%, she cannot be paid more than 12% interest on her loan. Her father would also need to deduct TDS @ 30.9% on the interest. Income: Income from loans given to residents is interest. Taxability: The interest income on loans given is taxable for NRIs. Loans to NRIs NRIs are allowed to borrow from a bank/authorized

For example, if Mr. Ashwin from Hong Kong transfers $100,000 to India and credits his NRE bank account in India, he has remitted the funds. Later, if he transfers the same funds back to Hong Kong, he is said to have repatriated the funds.

For transferring funds out of an NRE account, there is no limit, conditions or restrictions and the transfer can be completed very easily by submitting a request form.

If you still have NRO deposits, inquire why your advisor or the bank relationship manager did not tell you about the transfer to NRE account, seek proper guidance and immediately initiate the steps to transfer funds from NRO to NRE.