Quick Summary of Compliance Relaxation Measures announced by Finance Minister Union Finance Minister Nirmala Sitharaman today announced various statutory and regulatory compliance relief measures amid a complete shutdown almost all over the country to control the spread of the coronavirus. FM has extended compliance deadlines and provided various relief measures in Income […]
Union Budget (No 2) 2019 takes us a step closer to achieving short term goal of becoming a $5 trillion economy by 2024. The biggest theme of the budget was Connectivity. In addition, it also addressed liquidity issues, relaxed investment criteria and introduced key initiatives in R&D and education to pave way for […]
The Income Tax Department has been sending emails to all the tax payers with subject as “e-Filing Vault Options” and additionally to NRIs with subject as “Kind Attention of Non-Resident Taxpayer”. These emails have unnecessarily created confusion among tax payers, especially NRIs. This blog explains the emails, what it means, reasons, […]
Finally, the Central Board of Direct Taxes (CBDT) issues Notification no. 93/2015 dated December 16, 2015 that is both reasonable and practical for anyone making payment to a non-resident or an NRI remitting money outside India or transferring from NRO to NRE account. The important changes under the revised Rules are: […]
Recently, due to volatile rupee and favorable currency exchange rates, Banks have been aggressively marketing to NRIs for investments in the FCNR deposits with Forward cover highlighting a limited time opportunity comparing the yields with NRE Fixed Deposits. Banks have been selling the idea as an Arbitrage (Risk Free) opportunity between […]
Since the Foreign Account Tax Compliance Act (FATCA) came out in 2010, US Government has already signed Bilateral Agreements with 9 countries until June 2013. The November 8, 2012 Press Release mentioned that the US is engaged with more than 50 countries (including India) to implement FATCA. After analyzing all 9 […]
Individual Mutual Fund Investors, who completed KYC prior to Jan. 1, 2012, are required to submit ‘missing/not available’ KYC (Know Your Customer) information and complete the IPV (In Person Verification) for investing in a new mutual fund after Nov. 30, 2012. SEBI (Securities and Exchange Board of India) vide circular MIRSD/SE/Cir-21/2011 […]
FBAR Requirement: In simple terms, US Citizens and resident aliens (i.e. anyone filing Form 1040) are required to report Foreign Financial Accounts in FBAR form if Value of their Foreign Financial Accounts (FFA) (including bank, FD, shares, securities, mutual fund, cash value of life insurance, etc.) exceed $10,000 at any time […]
No. Foreign Financial Accounts ^ Reported in FBAR?^ Example* 1 Financial (deposit & custodial) accounts held at foreign financial institutions Yes Account with Indian Bank e.g. Kotak in India 2 Financial account held at a foreign branch of a U.S. financial institution Yes Account with US Bank e.g. Citi Bank in […]
Steps for FBAR Compliance: 1. List investments made in foreign countries and money in foreign accounts/investments 2. Determine which foreign financial accounts to be included for respective filing (FBAR 2) 3. Verify if FBAR is applicable based on filing status and reporting threshold (# 5, 6, 7) 4. Gather information required […]