Home > Money > Question
Need Expert Advice?Our Gurus Can Help
Anil

Anil Rego  |340 Answers  |Ask -

Financial Planner - Answered on Apr 06, 2022

Anil Rego is the founder of Right Horizons, a financial and wealth management firm. He has 20 years of experience in the field of personal finance.
He’s an expert in income tax and wealth management.
He has completed his CFA/MBA from the ICFAI Business School.... more
Prem Question by Prem on Apr 06, 2022Hindi
Listen
Money

Shall appreciate your expert advice based on the following facts:

Am 59 years old & came back to India on 6th November ’20 after my stint with an MNC overseas, for 14 years & 9 months. What is going to be my status for the previous financial year viz. 2020-21 as well as current financial year i.e. 2021-22? All my overseas salary up to 5th of November ’20 were transferred to my NRE Rupee or US $ fixed deposits.

I do have some small income in the form of dividend on shares, interest on ordinary rupee FDs, house rent etc. Most probably, I will not be working abroad any more. What will be the tax treatment of my NRE deposits which are going to mature in future or have been renewed after my return to India in November’20? As per my standard instructions to the banks, the same are being auto-renewed on due dates.

I would like to know if there are any specific investment products other than NRE/RFC FDs, for the NRIs whose status has changed in the current fiscal year or is going to change in near future.

Most all my savings are in INR only, but classified under NRE deposits.

Ans: The status of FY2020-21 would be NRI and the status in FY2021-22 would be RNOR (Resident but not ordinarily resident). So you need to convert the NRE to resident account immediately after returning to India. If you fail to convert your NRE account within 3 months of the return, it will be considered as a violation of Foreign Exchange Management Act (FEMA) and attract a penalty.

After you return to India, any interest earned on NRE account will be taxable. You can opt to transfer your funds from NRE account to RFC account upon return

Though there are no specific products for returning NRIs, there are a whole range of investment options available for you apart from Bank Deposits. The most common are mutual funds, bonds, stocks, insurance, etc. You can choose to invest based on factors that suit you including risk, return, liquidity, etc. Options like PPF that are not available for NRIs become available when your status changes to Resident Indian.

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
Money

You may like to see similar questions and answers below

Anil

Anil Rego  |340 Answers  |Ask -

Financial Planner - Answered on Aug 25, 2021

Listen
Money
I was working abroad since June 2009 and returned back to India permanently on October 28, 2020. I changed my NRE bank account status to that of resident saving account in November 2020. Also, the FDs in the NRE account status were changed to resident saving account FDs. The interest accrued on these FDs on December 31, 2020, on quarterly basis and the bank cut TDS on the same. Also, TDS deducted in the March 2021 quarter on FD interest/ matured FDs in this quarter. My questions are: 1. While filing tax for the financial year April 2020 to March 2021, will the interest income on the savings account and the FDs be considered from the date of account status changed from NRE to resident saving account? Or will the interest income be considered from Mar 2020 (ie, for whole year)?
Ans: As per the RBI's master directions, upon returning to India permanently, the existing NRE FD account of the NRI account holder is required to be converted to a resident account, without any changes in the promised rate of interest.

The interest earned from the NRE FD is not taxable. However, after it is converted to a resident FD, the interest earned is taxed as per your income tax slab. TDS will be deducted if applicable.

2. If the answer of the first question is from the date of account status change, then the total income for the year will be less than exempted income. In this case, can I get tax return on deducted TDS on FDs after filing ITR?

Anil Rego Yes. Once you file ITR, you can claim a refund for any extra tax paid.

(more)
Mihir

Mihir Tanna  |799 Answers  |Ask -

Tax Expert - Answered on Nov 25, 2022

Listen
Money
I was a NRE and I am having NRE FDR maturing at different dates. I have come to settle in India. My question is do I need to file IT returns? But the interest is from my NRE FDs.  Please advise me in details considering me as a lay man. 
Ans: Interest earned on NRE FDs is exempt from tax till the time a person is non-resident in India as per provisions of FEMA, 1999. As you have come to settle in India, for the purpose of taxing FD Interest income, you may be treated as a Resident and entire Interest income may be taxed.

Regarding filing income tax return, person is required to file Income tax return in following scenarios:

1. If income is above Rs.2.5 lakh in a Financial Year; or

2. Further following specified persons are also required to file income tax return even if earned income is below Rs.2.5 lakh: 

a. People with Sales turnover of Rs 60 lakh and above from Business

b. Professional income exceeding Rs 10 lakh

c.  TDS or TCS of Rs 25,000 or more (Rs 50,000 or more in case of senior citizen) - even if person don't want to claim refund

d. Deposited at least Rs 50 lakh in one or more savings accounts

e.  Deposited amounts exceeding Rs 1 crore in one or more current accounts

f.   Spending above Rs 2 lakh on a foreign country travel Electricity bill exceeding Rs 1 lakh

g. Where there is an income from foreign sources for resident

h. Return filing is mandatory if you are a Resident individual and have an asset or financial interest in an entity located outside of India

i.   If you are a Resident and a signing authority in a foreign account  

Apart from above, it is also advised to file ITR in following situations, if same is applicable in your case:

  • If TDS is deducted by payer of income, filing income tax return makes you eligible to claim refund with interest @6% p.a. - If person wants to carry forward certain loss to future years, it is advisable to file return
  • Proof of return filing is also asked when a person applies for a loan or a visa. So in future, if you are planning to apply for the same, it is advisable to file income tax return if you have earned reasonable income which makes you eligible for application.
(more)
Latest Questions
Shekhar

Shekhar Kumar  |17 Answers  |Ask -

Leadership, HR Expert - Answered on Apr 14, 2024

Asked by Anonymous - Apr 14, 2024Hindi
Listen
Career
Eventhough you are ready to Grab the oppurtunity and behave in flexible manner When you are not working currwntly it becomes nightmare to join a job once again HR dept, Interview panel Sr Mgmt dont look for Solutions to their Requirements posted online whether it is Naukri or Indeed or Linkedin Getting selected but not finalising Putting Selected candidates on hold for 2 to 3 / Even 3 to 6 months shows worst economy In india especially post covid scenario Not able to recover in career to bring myself back on track after innumerable attempts Location constraints Language constraints Relavang exp / Relavant ind constraints Age constraints Slow Decision making from Corp Mgmt and BUSINESS HEAD / MD / CEO Facing rejection with cool attitude
Ans: Thank you for sharing it to me. It sounds like you're facing a challenging situation, and I understand how frustrating it can be to navigate the job market, especially in the current economic climate. Here are some insights and strategies to help you cope with these challenges:

Despite facing setbacks and rejections, it's essential to remain persistent and resilient in your job search. Keep applying to relevant positions, refining your resume and cover letter, and reach out your professionals network in your industry and consider broadening your job search criteria to include a wider range of industries, roles, and locations to help yourself. Invest your time in continuous learning and skill development to enhance your qualifications and make yourself more competitive in the job market by pursuing certifications, online courses, or workshops relevant to your field to stay updated with industry trends and requirements. Try to attend industry events, join professional associations, and leverage online networking platforms like LinkedIn to expand your professional network and access potential job leads. Despite the challenges you're facing, try to maintain a positive mindset and focus on the aspects of your job search that you can control. Keep practicing self-care, stay motivated, and celebrate small victories along the way to stay resilient in the face of adversity.

Always remember that setbacks and challenges are a natural part of the growth process, and it's essential to persevere and adapt your approach based on your experiences. Stay proactive, keep learning and searching better jobs, and trust that your efforts will eventually lead to success. Best of luck! Feel free to contact me on Rediff Gurus if you need further assistance or help.
(more)
Shekhar

Shekhar Kumar  |17 Answers  |Ask -

Leadership, HR Expert - Answered on Apr 14, 2024

Asked by Anonymous - Apr 13, 2024Hindi
Listen
Career
Sir, I am 27 year old. Single . Working in a psu as a manager. I hate my job. I am not that great at study. I really want to earn a lot of money, travel and retire at the age of 45-50. But I don’t know how ? Should I do mba ? At this age ? I am middle class ! UPSC ? Learn coding? Stop dreaming?
Ans: It's reasonable to feel dissatisfied with your current job and to aspire for more. Considering your age, career stage, and goals, here are some considerations and potential paths you could explore:

Pursuing an MBA can be a valuable option if you're seeking to advance your career, switch industries, or develop managerial and business skills. Many MBA programs welcome candidates from diverse backgrounds, including those with experience in public sector organizations. If you're interested in a career in civil services and have a passion for public administration, policy-making, and governance, preparing for the UPSC exam could be a viable option. Keep in mind that UPSC preparation requires dedication, perseverance, and thorough understanding of current affairs and the Indian administrative system. Learning coding and acquiring technical skills can open up opportunities in the rapidly growing field of technology as well. If you have innovative ideas and a strong desire to create your own path, entrepreneurship could be worth exploring. Starting your own business or venture allows you to pursue your passions, take control of your career, and potentially achieve financial independence. However, entrepreneurship also involves risks and uncertainties, so it's crucial to conduct thorough market research, develop a solid business plan, and be prepared for challenges along the way. Regardless of your career path, prioritizing financial planning and investments can help you work towards your goal of retiring early. Consider consulting with a financial advisor to create a personalized financial plan, explore investment opportunities, and establish a savings strategy that aligns with your income, expenses, and retirement goals. Finally, focus on personal development and self-discovery to clarify your values, interests, and priorities. Reflect on what truly motivates and fulfills you, and explore ways to incorporate those elements into your career and lifestyle choices.

Ultimately, there's no one-size-fits-all answer, and the best path for you will depend on your unique circumstances, strengths, and aspirations. Take the time to explore your options, gather information, and make informed decisions that align with your goals and aspirations. Remember that it's never too late to pursue your dreams and create the life you desire. Best of Luck! Feel free to contact me on Rediff Gurus if you need further assistance or help.
(more)
Shekhar

Shekhar Kumar  |17 Answers  |Ask -

Leadership, HR Expert - Answered on Apr 14, 2024

Asked by Anonymous - Apr 12, 2024Hindi
Listen
Career
I have recently completed my Masters in Zoology; specialisation in Cell Biology & Cytogenetics. Also, I hold a degree of Bachelor in Science as well as Bachelor in Education. Right now, I'm in that stage of life where you see a lot of options in your career; though confused which one to pursue as in the developing scenario, I want something that gives good money as well as requires my knowledge. Need experts advice.
Ans: Given your educational background and specialization in Cell Biology & Cytogenetics, as well as your dual degree in Science and Education, you have a diverse range of career options to explore. Here are some potential career paths that align with your qualifications and interests:

You can pursue a career as a research scientist in academic institutions, government agencies, or private research organizations, work in the biotechnology industry in roles such as research associate, laboratory technician, or quality control specialist or work as a clinical laboratory scientist or medical technologist in hospitals, diagnostic laboratories, or healthcare facilities or work as genetic counselor to assess risk of inherited genetic disorders and provide information and support regarding genetic testing, diagnosis, and treatment options, or work as biology teacher, college lecturer, or educational consultant or work as a science writer or editor, writing articles, blogs, or educational materials on topics related to cell biology, genetics, and cytogenetics or work as a regulatory affairs specialist, ensuring compliance with regulatory requirements and guidelines for the development and approval of drugs, biologics, and medical devices.

Consider your interests, career goals, and desired work environment when exploring these options. You may also benefit from networking with professionals in your field, seeking informational interviews, or gaining hands-on experience through internships or volunteer opportunities to help you make an informed decision about your career path. Feel free to contact me on Rediff Gurus if you need further help or assistance.
(more)
Shekhar

Shekhar Kumar  |17 Answers  |Ask -

Leadership, HR Expert - Answered on Apr 14, 2024

Listen
Career
Hallo Sir, Myself Sanjay Agarwal. My daughter pursued her M.Sc. (physics) from Delhi University in 2010–11. But could not clear it and got back papers in two subjects. She joined the service as a teacher (TGT) in a reputed 10+2 school and, after that, got married. As she is also teaching the 11 and 12 standards (supposed to be taught by PGT) and the results of her students are extremely good, now she wants to complete her PG in Physics so that she may be allotted the class as PGT. Her school is also suggesting this to her, and they are ready to provide the necessary permissions for that. Please suggest that after 10–12 years of back papers in DU, is it possible to clear those back papers now? Or may you suggest alternatives so that she may complete her M.Sc. in Physics?
Ans: Thank you for getting in touch with me on Rediff Gurus. It's commendable that your daughter is considering furthering her education to advance her career. While clearing back papers after a significant gap may pose challenges, it's not impossible. She should reach out to the concerned department or administrative office at Delhi University to inquire about their policies and procedures for clearing back papers after a long gap. They can provide guidance on the possibility and process involved. If clearing the back papers is possible, she can start preparing for the exams by going through her study materials, seeking guidance from professors, and practicing past exam papers. She can also consider private universities and institutions as an alternative which are offering PG courses in Physics that may have more flexible admission and examination policies, if clearing back papers at Delhi University seems challenging. Kindly encourage your daughter to assess these options carefully, with determination and perseverance to achieve her educational and professional aspirations. Feel free to contact me on Rediff Gurus if you need further assistance or help.
(more)
Shekhar

Shekhar Kumar  |17 Answers  |Ask -

Leadership, HR Expert - Answered on Apr 13, 2024

Listen
Career
Hii, I am BCA passout student in year 2021, and currently I am pursuing LLB degree so at that time I am still confused to choose a career, so plz tell me what are the pros and cons of both degree and which degree makes money earlier and great future provide to me
Ans: Thank you for getting in touch with me. Choosing between a Bachelor of Computer Applications (BCA) and a Bachelor of Laws (LLB) degree can be a significant decision that depends on various factors including your interests, skills, career goals, and personal preferences. Here are some pros and cons of both degrees to help you make an informed decision:

Pros of BCA: Lucrative Job Opportunities, High Demand and Competitive Salaries,
Cons of BCA: Rapid Technological Changes, Job Competition and Work-Life Balance
Pros of LLB: Prestigious Career, Diverse Practice Areas, Stable Income, Advocacy and Social Impact
Cons of LLB: Lengthy Education and Training, High Competition, Work-Life Balance

When considering which degree may provide better financial prospects and a great future, it's essential to weigh your interests, strengths, career goals, and personal preferences. Both BCA and LLB offer promising career paths with opportunities for growth, success, and fulfillment, but the right choice ultimately depends on your individual aspirations and aspirations. Additionally, exploring potential career paths, networking with professionals in each field, and mentors can help you make an informed decision that aligns with your long-term goals and aspirations. Good luck! Feel free to contact me on Rediff Gurus if you need further help or assistance.
(more)
Shekhar

Shekhar Kumar  |17 Answers  |Ask -

Leadership, HR Expert - Answered on Apr 13, 2024

Asked by Anonymous - Dec 29, 2023Hindi
Listen
Career
How to apply for internship in Rosell techsys pvt ltd
Ans: Happy to hear from you! To apply for an internship at Rosell Techsys, you can follow these instructions mentioned below:

First visit the official website of Rosell Techsys Pvt Ltd. You can also search for any internship openings on job portals as well such as Freshersworld, Shine, Indeed, Naukri.com or LinkedIn. Then look for internship opportunities that match your skills, interests, and career goals by paying attention to the job descriptions, requirements, and application deadlines mentioned on the website. Prepare your resume/CV highlighting your relevant skills, qualifications, academic achievements, and any previous internship or work experience and write a compelling cover letter expressing your interest in the internship position and explaining why you are a suitable candidate. You should customize your cover letter for each application to make it more personalized and impactful then submit your application through the company's official website or the job portal where the internship opening is posted. Please follow the application instructions carefully and ensure that you attach all required documents, such as your resume/CV and cover letter. After submitting your application, be patient and wait for a response from Rosell Techsys. If your application is shortlisted, you may be contacted for further rounds of interviews or assessments. Prepare for interviews by researching the company, understanding its products/services, and familiarizing yourself with the internship role and responsibilities. Be confident, articulate, and enthusiastic during the interview process. If you are selected for the internship, review the terms and conditions of the internship offer carefully, including the duration, stipend (if any), and expectations and respond to the offer promptly and confirm your acceptance of the internship position.

By following these instructions and presenting yourself as a qualified candidate, you can increase your chances of securing an internship opportunity at Rosell Techsys Pvt Ltd. Good luck! Feel free to contact me on Rediff Gurus if you need further guidance or assistance.
(more)
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x