Serpent

Buying life insurance for tax benefits is not the right way either for life insurance or for your tax planning exercise. If you seek to invest for only tax planning, you have a plethora of options available today ranging from bank fixed deposits to equity linked savings schemes. You may opt for any one of these. Buy life insurance only to the extent you need life insurance coverage.

Arvind Rao

dhaval

Hello Mr. Dhaval Patel Pleased to acknowledge your query. You will be glad to know that the Income Tax Structure is based on Residential Status, which is determined on the basis of the number of days of stay in India. Hence, you could send us details of the number of days stay in India of the past four years in excel sheet in order to enable us determine your residential status. Further, you could avail the benefit of Double Tax Avoidance Agreement(DTAA) between India and Australia to claim rebate for taxes paid in Australia. This rebate would depend upon the provisions of the Agreement (treaty). You will appreciate that based on the information provided, appropriate guidelines have been proposed. Please do not hesitate to get in touch with us, for any further requirements. Sanjeev Kamdar

sanjeev kamdar

Nipun

Dear Sir Pleased to acknowledge your query. You will be glad to know that you could mention these investments in your return and claim refund. Ideally refund could be received within four to six months. Further, the proofs for the investments need not be attached as per the new rules. It can be submitted to the Income Tax department as and when called for and if at all called for by the department. You will appreciate that based on the information provided, appropriate guidelines have been proposed. Please do not hesitate to get in touch with us, for any further requirements. Sanjeev Kamdar

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DubaiNri

For your retirement (assumed to be after 10-15 years), you can choose to invest your funds in good equity diversified funds or even select sectoral funds, based on your financial planner's advice. Longer time frame would help you reap the benefits out of these funds. Investment in hot scrips is certainly not the way to go for your retirement planning. Thanks, Arvind Rao

Arvind Rao

Ganesh

As per the Income Tax provisions, rebate on overseas medical premium cannot be claimed. Hence, we regret to inform that you cannot claim any benefit for overseas mediclaim. However, rebate for tax liability on overseas income computed, while filing your income tax return in India, can be claimed as per relevant Double Tax Avoidance Agreement(DTAA) between India and U.S. You will appreciate that based on the information provided, appropriate guidelines have been proposed. Please do not hesitate to get in touch with us, for any further requirements. Sanjeev Kamdar

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Goban

You will be glad to know that taxation in India is based on your residential status. And residential status is based on the number of days stay in India. Hence send us details mentioning your stay in India for the last four years in order to enable us to determine your residential status. Based on that and your plans about future stay in India, we could plan transfer of funds from U.S. to India. You will appreciate that based on the information provided, appropriate guidelines have been proposed. Sanjeev Kamdar

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vidushi

Investment in mutual funds is only as safe as investment into equity shares. It carries the market risk with itself and does not offer any guarantee on the principal amounts. However, mutual funds could be relatively safer than direct investment for the fact that your funds are being managed by professional fund managers, who would enter and exit the shares as per their views. We do have certain mutual funds that are oriented towards capital protection too. Thanks, Arvind Rao

Arvind Rao

vidushi

Investment in gold mutual funds offers convenience over actual gold, in terms that you do not have to keep physical gold at your house or in bank lockers, but at the same time enjoy the appreciation in gold commodity. However, if you wish to use gold for consumption purposes, then you have to buy physical gold. Thanks, Arvind Rao

Arvind Rao

Yogendra

Dear Yogendra You will be glad to know that Income tax liability is determined on total income from all sources for a resident Indian. Hence, in your particular case, irrespective of the work place and location of the property, you may note that, if the property agreement mentions both names i.e. yours and your father's name and if the loan installment is paid from your account, then, you can avail tax benefit in respect of housing interest and principal repayment. Sanjeev Kamdar

sanjeev kamdar

US

Hello Nilesh Ghubade As we understand from your query, you have transferred U.S. tax paid income to India for family maintenance. Thereafter, you are interested in claiming deduction in your Indian Income Tax return for the family maintenance expenses. You may please note that such expenses do not qualify for deduction as per the provisions of the Income Tax act in India. You will appreciate that based on the information provided, attempt has been made to provide clarifications, in case of any further doubts , please do not hesitate to get in touch with us. Sanjeev Kamdar

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hemlata

Vidushi, a very interesting point raised. This is a perfect dilemma faced by common investors and one of the reasons why they invest in insurance plans and not mutual funds. But here, we need to understand two things. Ideally, one should not invest in insurance and secondly, when both insurance and investments are combined, the charges associated with the same are higher than either of the functions when performed individually. So, if you want convenience with regard to investments and insurance, insurance plans fit the role perfectly. Thanks - Arvind Rao

Arvind Rao

hemlata

Most of the insurance plans that offer a money back guarantee or capital guarantee nowadays are unit linked policies, one should therefore check for the different kinds of charges (both for the first premium and the renewal premiums) involved in the policy. The prospective insured should also educate him/ herself about the guarantee offered by the policy, whether it is only for the premiums paid or for the premiums paid plus a guaranteed addition. This will help the policyholder to ascertain the benefits receivable from such a policy. Thanks, Arvind Rao

Arvind Rao

uday

The details provided by you are not sufficient enough to help you plan for your goals. To prepare a plan, other inputs like your time horizon, the value of your goal, your expense details and your available resources also need to be taken into account. With the limited information provided by you, it can only be said that you need to systematically plan and invest with prudence to achieve your aforementioned goals. Arvind Rao

Arvind Rao

Mohammed Naeem

Dear Naeem It is advisable to go in for a PAN card. Here's why: As per the guidelines issued by the Government of India, any person, resident, NRI or a foreign citizen should have a PAN for carrying out financial transactions like : Investment in a Mutual Fund, Opening of a bank account in India, purchase or sale of property etc. The following entities can apply for a PAN card Individual Hindu Undivided Family (HUF ) Private Limited & Public Limited Company Partnership Firm Trusts Artificial Judicial Person Foreign Company Local Authority Association of Person Liaisoning office etc. Here's how you can apply for a PAN: Fill up Form 49A, Attach a proof of identity (as per point 2 below), Attach proof of residence (as per point 2 below), Submit the set to NSDL /UTI. After submission, you'll receive an acknowledged copy which you may use for further follow-up with the department. Here's explaining the above steps (1 to 3) in detail: 1. Form 49A PAN is required to be applied under Form 49A. Instructions for filling Form 49A: Form to be filled in BLOCK LETTERS and in BLACK INK only. Each box, provided for filling the details, should contain only one character. Photograph is required only in case if the applicant is an individual. In case of other applicants, box for photographs to be left blank. Signature/left thumb impression should only be within the box provided. It should not be made across the photograph attached. Thumb impression, if used, should be attested by a Magistrate or Notary or Gazetted officer. Every applicant, other than an Individual, is required to affix a rubber stamp across the signature. 2. Identity proof and Residence Proof Every applicant is required to provide proof of identity and residence. Documents which are considered as identity proof and residence proof are listed below: Category Documents Required Individual For Proof of Identity* (Copy of any one of the following) 1. School Leaving Certificate 2. Degree of Recognized Educational Institution 3. Credit Card 4. Water Bill 5. Property Tax Assessment Order 6. Voter's Identity card 7. Matriculation Certificate 8. Depository Account 9. Bank Account 10. Ration card 11. Passport 12. Driving License For Proof of Residence* (Copy of any one of the following) 1. Utility Bill 2. Depository Account 3. Credit Card 4. Bank Account 5. Ration card 6. Employer Certificate 7. Passport 8. Voter's Identity card 9. Property Tax Assessment Order 10. Driving License 11. Rent Receipt HUF The above mentioned documents in respect of Karta of the HUF Company Copy of certificate of Registration issued by the Registrar of company Firms Copy of certificate of Registration issued by the Registrar of Firms or Copy of Partnership Deed AOP(Trusts) Copy of trust deed or Copy of Certificate of Registration Number issued by Charity commissioner. AOP/BOI/Local authority/Artificial Juridical Person Copy of Agreement or Copy of Certificate of Registration Number issued by Charity commissioners or Registrar of Co-operative Society or any other Competent Authority or any other document originating from any Central or State Government Department establishing identity and address of such person * : If the Applicant is a Foreign Citizen/Non resident Indian, documents for Identity proof and Residence proof are required to get attested by Indian Embassy in the home country of the applicant. You will appreciate that based on the information provided, appropriate guidelines have been suggested. In case you require any further clarifications, do get in touch. Sanjeev Kamdar

sanjeev kamdar

gautam

Hi Gautam, request you to clarify your query, as the information provided seems to be ambigous. Thanks, Arvind Rao

Arvind Rao

Shilendra

Hello Shilendra, your concerns are pretty much appreciated. Apparenly, your funds have lost as much as 25% of their value, which seems more or less in line with the correction in equity markets. If you had invested your long-term money in these funds, the advice for you would be to hold on to your investments. Equity funds have to be given at least 3 years to enjoy the benefits of equity investments. If you continue to be a long term investor, you may still consider investing in some new equity funds at this juncture. But, if you are looking for short term investments, without taking any risk, then do not invest in equities. Thanks, Arvind Rao

Arvind Rao

Shilendra

Hello Shilendra, your concerns are pretty much appreciated. Apparenly, your funds have lost as much as 25% of their value, which seems more or less in line with the correction in equity markets. If you had invested your long-term money in these funds, the advice for you would be to hold on to your investments. Equity funds have to be given at least 3 years to enjoy the benefits of equity investments. If you continue to be a long term investor, you may still consider investing in some new equity funds at this juncture. But, if you are looking for short term investments, without taking any risk, then do not invest in equities. Thanks, Arvind Rao

Arvind Rao

Sudipto

Dear Roy You'll be glad to know that as per the provisions laid down by the Income Tax Act, medical expenses can be re-imbursed only in case there's an employer-employee relationship. Hence, in your case, reimbursement of medical expenses between April '08 upto your last date of service with company A will need to be recovered from company A. Similarly reimbursement of medical expenses with company B will be valid only after date of commencement of employment with company B. Sanjeev Kamdar

sanjeev kamdar

Das

Dear Mr.dass Greetings Pleased to acknowledge your query. You will be glad to know that India has double tax avoidance agreement with USA & accordingly the credit for taxes paid in USA can be claimed in India as per the provissions of DTAA. You will have to produce proof of taxes paid in USA & tax residency certificate of USA for the same in India. You will appreciate that based on information provided, attempt has been made to provide clarity to your queries. In case of any doubts please do not hesitate to get in touch. Kind Regards Sanjeev Kamdar

sanjeev kamdar

nishma

Dear Nishman Nirmal Greetings Pleased to acknowledge your query. Background:Based on your query we understand that you have been an Indian Citizen in the past and have migrated to a foreign country. The property was acquired during your stay in India. This property earns revenue in the form of Rent Income. Our Reply: 1) NRIs can get Pan Card 2) NRIs can open special bank accounts designated for NRIs viz. NRE/NRO for deposit on Rent Income 3) Tax Payment is based on earnings. Generally, the advance payment is done in 4 quarterly instalments. 4) We need to understand your parent's current income to advise further. You will appreciate that based on information provided, attempt has been made to provide clarity to your queries. In case of any doubts please do not hesitate to get in touch. Kind Regards Sanjeev Kamdar

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Sridhar

We understand that you are interested in obtaining a loan from your US client. You may obtain funds from your US client as "advance towards a project". This advance can be adjusted by way of fees every month. Direct loans for individuals are permitted in case of blood relatives abroad under certain restricted conditions. Hence, the best possible manner would be to obtain an 'advance'. Further, in case of security, mortgage can be created in favour of the US client and nullified once the loan is fully paid up. Do feel free to write in if you need any further clarifications. Sanjeev Kamdar

sanjeev kamdar

Ramesh

Hello Mr. Ram, first of all, congragulations for your new born baby. It is an ideal thing to start investing early for your child to enjoy the power of compounding. A post office deposit doesnt double your money in 7 years, you can alternatively invest in a KVP, which doubles money but only in approx. 8.5 years. On maturity, the interest earned on these deposits would be taxable. If you are keen on having a proper plan made for your child's investment, you could write in to us arvind@dreamzinfinite.biz and we could work out some alternatives for you to reach your goal. Thanks, Arvind Rao

Arvind Rao

C S

In case of proprietorship business, transfer of funds from a current account to a savings account will be considered as a withdrawal, which will be reflected in the proprietor's capital account in the firm's balance sheet. This transfer is not taxed. The tax liability will be computed in a manner similar to that of individuals, wherein income (net profit) from proprietorship firm, rent income, other income etc are considered and applicable deductions would be allowed e.g. contribution to insurance premiums, qualified investments etc. Sanjeev Kamdar

sanjeev kamdar

pankaj

Planning for the retirement funds in order to balance between return, security and liquidity is one of tricky aspects in financial planning. In addition to POMIS, you may try the Mutual Fund MIP schemes, Bank FDs or even income schemes of Mutual Funds to generate good income during retirement for your father. It would be advisable to meet a financial planner to chalk out the right strategy for the same. You may contact us at arvind@dreamzinfinite.biz for any further help required. Thanks, Arvind Rao

Arvind Rao

shasanka

You mail indicates that you are a Resident (your stay in India is over 180 days in a year) of India and intend to remit U.S.$ 3000. In my opinion you should transfer these funds from your U.S.bank account to Indian bank account. In case you have any evidence of tax payment/withholding tax, preserve the same and maintain a copy in India. This would be helpful in claiming rebate for tax liability in India. With regards to transfer of funds, normal banking channels would be good enough. For any further clarifications do feel free to write in. Sanjeev Kamdar

sanjeev kamdar

Pradeep

It is advisable to transfer the funds from your U.S. bank account to NRE account in India. Thereafter, the funds could be transfered from NRO account to your wife's account. This mode would ensure a helpful audit trial, if required in the future. Further, this transfer could be treated as a gift from the husband to his wife. The same is permitted under the existing Income Tax provisions in India and are not liable to be taxed. Also, the above methodology would require only bank statments as evidences. For any further clarifications do feel free to write in. Sanjeev Kamdar

sanjeev kamdar

Myvette

For long term investors, there is no right time to buy shares, as any time is good time. With the recent correction, there are many good scrips available at decent valuations, which can be picked up for the long term.

Arvind Rao

vijay

Dear Sir Greetings You will be glad to know that remittance of funds from overseas to India is done under different contexts. It could be a gift from foreign national/ Non Resident Indian to an Indian Resident, Transfer of income received overseas by an Indian Resident, Maintenance of Indian Residents who are dependants of an Overseas Resident, Investment in Securties/Business in India by an overseas resident etc. The limits are specified for each category. Hence, provision of specific details would enable us to answer your concerns comprehensively. You will appreciate that based on information provided, attempt has been made to provide clarity to your queries. In case of any doubts please do not hesitate to get in touch. With regards sanjeev cellular : + 91 9820070845 skype - sanjeevca visit us at : www.kdpaccountants.com --------------------------------------------------------------------------------------------------- From Kamdar Desai & Patel Chartered Accountants Mumbai INDIA Tel 0091 22 24475000 Fax 0091 22 24475001 E Mail : sanjeev@kdpaccountants.com

sanjeev kamdar

Venkatesan

Dear Venkat Greetings You will be glad to know that in case you have not filed the return for the year ended march 2007, then you can still file a return as per the provisions of the Income Tax Act. Also in case your former employers have not deducted tax then the same can be declared in your return and you could pay up the tax along with interest. You will appreciate that based on information provided, attempt has been made to provide clarity to your queries. In case of any doubts please do not hesitate to get in touch. With regards sanjeev cellular : + 91 9820070845 skype - sanjeevca visit us at : www.kdpaccountants.com --------------------------------------------------------------------------------------------------- From Kamdar Desai & Patel Chartered Accountants Mumbai INDIA Tel 0091 22 24475000 Fax 0091 22 24475001 E Mail : sanjeev@kdpaccountants.com

sanjeev kamdar

Amol

Dear Amol Greetings As per the provisions of Income Tax Act, deductions can be claimed for the respective individual's share of owvership.You may also note that in case co-owner's repays loan to an extent greater than his/her share of ownership, then, co-owner becomes entitled to rights of property to the extent of repayment done.. You will appreciate that based on information provided, attempt has been made to provide clarity to your queries. In case of any doubts please do not hesitate to get in touch. With regards sanjeev cellular : + 91 9820070845 skype - sanjeevca visit us at : www.kdpaccountants.com --------------------------------------------------------------------------------------------------- From Kamdar Desai & Patel Chartered Accountants Mumbai INDIA Tel 0091 22 24475000 Fax 0091 22 24475001 E Mail : sanjeev@kdpaccountants.com

sanjeev kamdar

qwert

Dear Mr. Dhaval Greetings To help you further, we need to know your exact date of deaprture from India and your number of days stay in India in last four financial years (april to march). You may note that your salary would be governed by the provisions of Double TAX Avoidance agreement between India and Australia. We can assist further ocne we know the number of days stay in India. You will appreciate that based on information provided, attempt has been made to provide clarity to your queries. In case of any doubts please do not hesitate to get in touch. With regards sanjeev cellular : + 91 9820070845 skype - sanjeevca visit us at : www.kdpaccountants.com --------------------------------------------------------------------------------------------------- From Kamdar Desai & Patel Chartered Accountants Mumbai INDIA Tel 0091 22 24475000 Fax 0091 22 24475001 E Mail : sanjeev@kdpaccountants.com

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