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Mihir

Mihir Tanna  |790 Answers  |Ask -

Tax Expert - Answered on Mar 02, 2023

Mihir Tanna has more than 10 years of experience in direct taxation, including filing income tax returns.
He regularly represents clients before the income tax authorities including the commissioner of income tax (appeal).... more
Anil Question by Anil on Feb 28, 2023Translate
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My brother is an NRI & has been investing in Insurance policies since they offer tax free returns which can be taken to the country they reside in. I hv been hearing, since budget that after 1April, all new investments in insurance policies by NRIs will be taxable & the returns will be given in future after deduction of tds @30%. Is this true & how this can be dealt with?

Ans: It is proposed to tax income from insurance policies issued after 1.4.2023 (other than ULIP for which provisions already exists) having premium or aggregate of premium above Rs.5,00,000 in a year. In case policy is already taken, proposed amendment will not be applicable.
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.
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Anil

Anil Rego  |330 Answers  |Ask -

Financial Planner - Answered on Apr 06, 2022

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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.

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Hello Sir, Don't disclose my name, I am working in boarding school from last 2 year's, last year principal changed and he is giving lot of work (harassing staff ) so around 50% of staff left the school. he is not appointing new staff also. hardly 2-3 staff he has appointed. In my department 3 staff ware there now I am alone, he is not appointing any one, so I am alone handling all the classes. he has increased the work also. So I decided to leave the work and I got the work also. I have sent my resignation letter through mail. In my appointment letter they have mentioned “During the probation period your service may be terminated by ONE MONTH NOTICE on “either side or Salary in lieu of notice” and The relieving date in all circumstances will not be earlier than the last day of the academic year unless the school terminates. if you are working on any assignment when you tender your resignation such assignment must be completed to the satisfaction of the school before your services will be released. As allocation of subject teaching is a duty allocated for the academic year the reliving date will not be earlier than the last date of the academic year in which the resignation is tender. The school does not encourage mid term session dis continuation of services. School academic year will ends in April. At the time of appointment they have taken all my original certificates. But when I sent my resignation with one month notice period they replied as per your request, you will be relived after the completion of required formalities and work as per service rules. But, yet they are not mentioning what are the work to complete. After one month notice period immediately I have to join my new job. otherwise i will miss my opportunity. orally simply they are extending my date. At present they have extended 15 days after my last day of my notice period. kindly guide me how to solve the problem, get back my originals and join my new job smoothly. Regards
Ans: Please consult a lawyer
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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.

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