Month: November 2022

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NRI Services

The Need For Professional NRI Services In India

Need For Professional NRI Services In India

India is the bright spot in the overall gloomy world economies. India is one the fastest growing economies in the world, and therefore no wonder that India is one of the most preferred destinations of the NRIs when it comes to Investing. It is very important that an NRI hires a professional financial company for their various NRI services in India. In the last decade, India has drastically improved its infrastructure facilities, ease of doing business abilities, and various other laws. All these changes will enable India to unlock its growth story. 

India continues to attract massive inflows of Foreign Investments. India is one of the few developing countries receiving a steady flow of Foreign Investments in the last few decades. Therefore it makes absolute sense for an NRI to Invest In India. However, an NRI looking to invest in India must look for a financial services provider company that can provide quality NRI Services in India. A professional financial company can cater to all their requirements of the NRIs from investments to taxation. It would also be able to ensure that the NRI complies with all the relevant rules and regulations of India.

Following are the reasons why an NRI must work with a professional financial services provider company for NRI Services in India:

1) One-Stop Financial Services Provider:

A professional financial company providing NRI Services in India would greatly help the NRIs. It would enable them to track and monitor all their investments in one place. An NRI would also get all its requirements satisfied in one place. A professional financial company would take care of an NRI’s Investment, Insurance, Income Tax, and Banking needs all in one place. It will therefore eliminate the need for the NRIs to have multiple advisors or people for the same task.

2) Quality Service:

An NRI is assured of getting quality NRI services in India with a professional company. Most professional financial services companies tend to have a process-driven approach to keep things simple and efficient. Moreover, professional companies have well-trained and experienced employees that can better cater to the requirements of the NRI. 

3) Taxation Compliance:

A professional financial company will help the NRIs in proper tax compliance as well. A company providing comprehensive NRI services in India would ensure that the NRI is tax complaint in India. NRI Investments are subject to various taxes like Short Term Capital Gain Tax (STCG) or Long Term Capital Gain Taxes (LTCG), etc. It is here that a professional financial company would ensure that the NRI pay the necessary taxes as per Indian rules. A experienced financial company will therefore keep the NRI tax complied as per the Indian rules and regulations.

4) Tax Planning:

Not only does a financial company help an NRI in Tax Compliance, but it also helps an NRI in Tax Planning. Tax Planning is a process through which a financial company reduces the NRI’s tax burden. The NRIs tax burden is reduced while staying within the legal ambit of rules and regulations of the Indian Income Tax Act. A professional financial company would know the various deductions and ways an NRI can reduce its overall tax liability.

5) Experience:

A professional financial company providing NRI Services with years of experience would be better equipped to handle NRI’s needs. An experienced company would be well-versed in the intricacies of an NRI investment and other requirements. A professional financial company would also be aware of various laws and regulations that streamlines the NRI’s investment process.

How We Can Help You?

We at Ashutosh Financial Services Private Limited have been providing NRI services in India for over 20 years. Ashutosh Financial Services Financial Limited is a professional, ISO-certified, One-Stop financial services provider company. Our NRI Services consists of NRI Banking, Investments, Insurance, Income Tax Compliance, Estate Planning, Foreign Tax Compliance, etc. We have dynamic leadership and management backed by a qualified and experienced team. 

Through our years of experience, we have created many custom processes that enable us to serve the NRIs in the most simple and efficient way. Our aim is to make the entire process of Investing for NRIs extremely streamlined and hassle-free. We have in-house dedicated research, tax, and claims settlement departments, which facilitates us to provide all the NRI services. We possess a state-of-the-art physical and digital infrastructure to provide quality NRI services.

At Ashutosh Financial Services Private Limited we keep our entire team updated with the happenings in the world of finance. Our team keeps themselves updated with all the current rules and regulation changes relating to finance. Through our years of experience, we are now excellent tax planners. We specialize in helping the NRIs save taxes while staying within the laid-out rules and regulations. In our 20+ years of providing NRI services we have successfully catered to the needs of over 500+ NRI families spread across 20+ countries. We aim to provide complete and comprehensive NRI services to the NRIs looking to invest in India. 

Categories
NRI Services

What is an NRE Account

Introduction To NRE Account:

An NRE (Non-Resident External Account) account is a type of account that lets the NRIs transfer their foreign currency earnings to India. It is a rupee-denominated account with no limits on transferring funds to and from India. NRIs use an NRE account to invest their foreign incomes in India. An NRE account is the preferred choice of NRIs for remittances. NRIs generally do remittances to take care of family responsibilities.

An NRE account is a savings bank account which can also be used to make fixed deposits. Moreover, the interest earned is also wholly tax-free and fully repatriable. An NRI can deposit their current Indian incomes (rent, interest, dividends, etc.) in their NRE account. However, there are restrictions on the deposit of sale proceeds of assets to an NRE bank account. An NRI can manage this account from anywhere in the world through Net Banking. An NRE account is exposed to exchange rate fluctuations. An NRI can open an NRE account individually or jointly (only with an NRI).

People Eligible To Open An NRE Account:

  1. Non-Resident Indian (NRI).
  2. Indian Citizens Studying / Working Abroad.
  3. Person Of Indian Origin (PIO).
  4. Overseas Citizen Of India (OCI).
  5. Indian Citizens Posted Abroad By The Government.

Benefits Of An NRE Account:

  • Remittances: Remittance is one of the key reasons why an NRI uses an NRE account. NRIs can transfer their foreign earnings to the NRE account with ease. An NRI can transfer money to this account in foreign currency from their foreign bank account, which will automatically get converted into Indian Rupee. The NRIs mostly use this account to take care of their responsibilities for their families back in India.

  • Tax-Free: Any interest earned on NRE Savings or Fixed Deposit account is tax-free and fully repatriable. Indian banks offer an attractive rate of interest on NRE Savings & Fixed Deposits accounts, making them an attractive option for the NRIs to invest or park their free funds.

  • Investment: An NRE account is also beneficial to NRIs when it comes to investments. Since there are no limits on the repatriation of the funds back to the foreign bank accounts, it lets the NRIs invest in India to their full potential. NRIs can choose to invest in Indian Stock Markets, Mutual Funds, Portfolio Management Services, Bonds, etc. It can be used to invest directly in the equity markets (Mutual Funds & Stocks) on fulfillment of certain conditions.

  • Repatriation: There are no limits on the repatriation of funds in an NRE account. An NRI can therefore transfer any amount to and from this account to their foreign account without any limitations. In contrast, an NRO account has a $1 million limit on repatriation of the funds.

Documents Needed To Open An NRE Account:

  1. Pan Card
  2. OCI Card
  3. Passport
  4. Bank Statement / Driving License (If OCI Card not available)
  5. Tax Identification Number
  6. Passport Size Photograph

How Can We Help You?

Ashutosh Financial Services Private Limited is a One-Stop Financial Services Provider. We provide NRI Services relating to NRI Banking, Income Tax Compliance, Investments, Insurance, Foreign Tax Compliance, etc. In our 20 years of providing NRI Services we have happily served over 500+ NRI client families spread across 20+ countries. We are a professionally managed ISO-certified company.

We have a dedicated NRI Services Department to focus on the requirements of the NRIs. Our team comprises of well qualified and well-trained people who always stay updated with the rules and regulations of the NRIs. We have a state-of-the-art physical office spread across 4000 sq—feet for our various departments and services. 

An NRI may need to do some transactions in India for multiple reasons ranging from taking care of family responsibilities to investing in India, but before any such transaction, an NRI must have an NRI bank Account. Therefore, we at Ashutosh Financial Services put utmost importance on understanding the needs and requirements of the NRI first before suggesting an NRI bank account.

In our preliminary discussion with the NRIs we explain to them all the advantages and disadvantages of the various type of NRI bank accounts and then help them in choosing the right type of bank account for their banking needs. We also explain to them the tax implications that they need to adhere to for the type of bank account chosen for them.

At Ashutosh Financial Services Private Limited we help the NRIs in opening the bank account by providing them a list of documents needed to open the bank account. Our team will help guide the NRI in choosing the right bank to open the account. To complete the entire process quickly, we also take regular follow-ups with the bank executives to ensure that the bank account opens at the earliest.

Categories
NRI Services

What Is An NRO Account

Introduction To NRO Account:

An NRO (Non-Resident Ordinary Account) account is a type of NRI account that is maintained in Indian Rupee. Through an NRO account, an NRI can manage all their incomes earned from India. An NRI can deposit their rent, dividend, interest, proceeds from the sale of assets, and various other incomes generated from India in their  account. An NRO account is a savings account and it can also be used to make a fixed deposit. An NRO account can be opened jointly with a resident or a non-resident Indian.

Any current income (rent, interest, dividends, etc.) received in an NRO account is fully repatriable after the payment of applicable taxes and completion of the necessary procedure. An NRI can also transfer up to $1 Million per year from their NRO account after paying the applicable taxes over and above the current incomes mentioned above. An NRO Account is immune to exchange rate fluctuations because it is a rupee-denominated account. An NRO account is always useful when it comes to investing in India.

People Eligible To Open An NRO Account:

  1. Non-Resident Indians (NRI).
  2. Person Of Indian Origin (PIO).
  3. Overseas Citizen Of India (OCI).
  4. Students Studying Abroad.
  5. Foreign Students Studying In India.
  6. Tourists On A Short Visit To India.

Benefits Of An NRO Account:

  • Manage Indian Income: An NRO account helps the NRI in collecting and manage his Indian income. An NRI could have various types of incomes like Rent, Interest, and Dividends from their various investments in India. An NRI could also deposit the proceeds from the sale of Indian assets in this account. An NRO account lets an NRI deposit these incomes in their own NRO account in Indian Rupee denomination only.
  • Immune To Currency Fluctuations: Most of the time the NRIs are at risk of losing money due to exchange rate fluctuations between the Dollar & Indian Rupee. An NRO account is immune to exchange rate fluctuations unlike an NRE account because it is a rupee-denominated account. Moreover, the repatriation of funds can also take place at the NRI’s discretion.
  • Repatriation: An NRO account also allows the NRI to repatriate their Indian income to the country of their residence. It is important to note that an NRI can only transfer up to $1 Million in a financial year and that too after paying the applicable taxes on the gains made over and above the incomes like rent, interest, and dividends earned. This enables the NRI to keep receiving income from their investments in India in a streamlined manner.
  • Investment: An NRO account also helps NRIs in investing in India. NRIs tend to invest in Indian stocks, mutual funds, and bonds for better returns. Since the NRO account is a rupee-denominated account, the NRIs can invest directly in the financial instrument of their choice without the need for conversion of currencies. 

  • Better Returns: It is also common knowledge among the NRIs that since is a developing country, it offers better interest on saving accounts and fixed deposits. An NRI can therefore either park their surplus funds in fixed deposits or let it be idle in the savings account and earn interest. The interest earned however is taxable subject to TDS deduction as well. The interest amount is wholly repatriable only after paying the appropriate taxes.

Documents Needed To Open An NRO Account:

  1. Pan Card
  2. OCI Card
  3. Passport
  4. Bank Statement / Driving License (If OCI Card not available)
  5. Tax Identification Number 
  6. Passport Size Photograph

How Can We Help You?

Ashutosh Financial Services Private Limited is a Rajkot-based company that has been serving the needs and requirements of NRIs. We provide NRI Services relating to Investments, Insurance, Income Tax Compliance, Foreign Tax Compliance, FEMA Regulations, Estate Planning, & NRI Banking. We have been providing all these NRI Services for over 20 years now. At Ashutosh Financial Services Private Limited we have a team of qualified and experienced individuals who have years of experience when it comes to dealing with the needs and requirements of the NRIs.

Any NRI willing to do a transaction to or from India needs to have an NRI Bank Account. It is very important to note here that a lot of NRIs would not have any idea about the banking regulations that they need to follow for opening an NRI Bank account or the types of bank accounts that an NRI can open. Since it is a very crucial part of the overall NRI Banking we at Ashutosh Financial Services have a process-driven approach that has been custom created to address the various needs of an NRI.

There are multiple types of NRI bank accounts that an NRI can open, we explain and outline all the advantages and disadvantages of these types of accounts. However, it is through detailed discussion that we identify and address the banking needs of an NRI and help the NRI in choosing the right type of bank account as per their need. We also help the NRIs in selecting a bank for opening their bank account. We not only guide the NRIs in the process of opening the bank account but also take regular follow-ups from the bank executives (if need be). Our aim is to provide the NRIs with a hassle-free experience while opening a bank account in India.

Categories
NRI Services

NRI Banking

Introduction To NRI Banking

A bank account for any NRI can be opened by an NRI or a Person Of Indian Origin (PIO) or an Overseas Citizen Of India (OCI), with an Indian bank to avail banking services in India. An NRI Bank Account is a unique type of bank account that can be opened in any Indian Bank by citizens who currently do not reside in India. An NRI could be having income in different foreign currencies like dollars, pounds, euros, etc. but in order to invest in India, an NRI would need an NRI bank account that can convert his foreign currency into Indian Rupee. For an NRI having income in India, it is also important to have an NRI account in India so that his earnings can be deposited in the said NRI account and then can be repatriated back to him post-conversion.

Types of NRI Accounts:

There are three types of bank accounts that an NRI can open to meet his banking needs in India:

1) Non-Resident Ordinary (NRO) Account:

An NRO account is an account held by NRIs primarily for managing their incomes earned or arising from India. An NRI can deposit any amount in Indian rupees in NRO Account. An NRO account also lets you receive funds in foreign currency from any foreign country.

An NRO account is mainly opened by NRIs to manage their deposits and interest incomes like dividends, interest, and rent. NRIs can only withdraw Indian Rupee from NRO Account as this account is maintained in Indian Currency.

The Interest earned on the deposits of an NRO account is subject to TDS (Tax Deducted At Source). Moreover, funds from an NRO account cannot be freely repatriated into any foreign account.

2) Non-Resident External (NRE) Account:

An NRE account is an account held by NRIs primarily to park their foreign earnings in Indian currency. Any currency (dollar, euro, pound) deposited into an NRE account will be converted to the Indian rupee.

The key benefit of an NRE account is that it is exempt from tax. The principal amount as well as the interest earned from the principal amount is both tax-free. Moreover, there are no limits on the repatriation of funds from an NRE account to any foreign account.

NRE accounts are generally used for personal or business purposes. NRE accounts are the preferred choice of accounts for NRIs looking to make direct investments in India. An NRE account is however prone to exchange rate fluctuation risk due to conversion into INR from foreign currency and vice versa.

3) Foreign Currency Non-Resident (FCNR) Account:

A foreign currency non-resident account is a type of account that lets NRIs create term deposits in foreign currencies in India. An FCNR account is like a fixed deposit to a resident Indian but only in foreign currency. Since the deposits are made in foreign currencies there is no risk of exchange rate fluctuations.

The Reserve Bank Of India (RBI) has allowed the NRIs to hold FCNR accounts in the following currencies only – US Dollars (USD), Great Britain Pound Sterling (GBP), Euro (EUR), Singapore Dollar (SGD), Hong Kong Dollar (HKD), Australian Dollar (AUD), Canadian Dollar (CAD), and Japanese Yen (JPN). 

The key point to note in an FCNR account is that both the principal and the interest earned on the principal amount are tax-free and fully repatriable without any restrictions. Moreover, since an FCNR account is basically a term deposit, the NRIs can earn risk-free fixed returns without exchange rate fluctuations or taxation.

A Brief Comparison Between NRO, NRE & FCNR Accounts:

How Can We Help You?

Ashutosh Financial Services is a professional financial company that has been assisting the NRIs in their various banking and financial requirements for over 20 years now. Through our years of experience, we have created a custom process through which we can satisfy the needs of the NRIs in the best way possible.

When it comes to NRI Banking requirements it is critical to understand and know the objective of the NRI before opening any bank account. We have a thorough discussion with the NRIs to determine their goals and objectives before suggesting them any NRI bank accounts. Once the goals are outlined we suggest an NRI the type of account that best suits their needs as well as satisfies all their requirements.

We also suggest the banks that an NRI should prefer for opening an NRI account. We also help the NRIs by informing them of the various documents and proofs that they will need to open an NRI bank account. Moreover, we also take regular follow-ups with the bank executives to ensure that the NRI bank account is opened at the earliest. We also assist and guide the NRIs in case of any problem arising in the process of NRI bank account opening. 

We also inform the NRIs about all the taxation and compliance matters relating to the NRI accounts opened by them. We are an end-to-end one-stop NRI service provider. We provide all kinds of services from NRI banking, Investments, Insurance, Estate Planning, Income Tax Compliance, and Foreign Tax Compliance. We are a professionally managed and ISO-certified company with a qualified and professional team.