Welcome to our website

A period of recession is gearing up or moving down frequently. Along with it, monetization of the market is making the ventures optimistic. The statistics say that this year is crucial for the small businesses and they look up for positive result. We have to wait and see the dramatic changes. Business and finance are two such generic terms on which people searches the maximum contents. Therefore, I am also sharing a cup of hot finance knowledge through my blog.

In the financial year of 2013, stay with me to move ahead.

Monday, 18 November 2013

RBI Tax Implication for the NRI Home Buyers

No matter what part of the world you reside, buying a home in India is a dream for many. The Indian laws over the years have made the acquisition process easier and thus number of NRI show interest in buying property in India.

With the falling price of Indian rupee property market is attracting the NRIs. Yes, NRIs can buy property in India accept agricultural land, plantation lands, farmhouses, etc even cannot acquire property as a gift. Well, there is no restriction in inheriting such property.

Do they need permission from RBI for the purchase? –

No, an NRI does not need permission from the RBI to buy a residential or commercial property in India.

How Do NRIs fund their purchases? –

As there are no upper limits for remittance of the fund, so with the use of regular banking channels, and NRE, NRO or FCNR accounts NRIs can fund their purchases.
They can also opt for interest free loans from the Indian relatives. However, there is an FEMA of $200,000 per financial year under the Liberalized Remittance Scheme, and even NRI are subjected to TDS for purchase over 50 lakh.

Tax Assumptions of NRI Property Buyers in India

Rent received from the property – Rent received is taxable, and for that, NRI has to file a tax return in India in case the rent exceeds the threshold limited with other income. Rent will be taxed in the NRIs country of tax residence. Under the Double Tax Avoidance Agreement (DTAA) NRIs might receive some tax relief if they stay in tax resident countries. This will helps to get credit from the paid taxes in India.

Deductions against the property – Municipal tax, housing loan payments are deductible just like other citizens of India. A standard reduction of 30% on the net rent obtained from repair and maintenance, irrespective of the total expenditure. Other deductions include housing loan principal repayment, stamp duty and on registration under section 80C for overall limit 1 Lakh per year.

Vacant Property – The tax value is NIL for vacant property only deduction available on such property is interest on housing loan up to Rs. 1.5 lakh per annum.

Wealth Tax on NRIs – NRI gets exemption from the wealth tax on a property that is under rent for more than 300 days. The value of second and subsequent vacant properties is subject to wealth tax, at the rate of 1% in excess of Rs. 30 lakh.

Property Sales Related Tax Charges – NRIs fall under capital gain tax in India just like other residents. For properties held for 36 months, they can get long-term capital gains and exception for investing in another’s house or property. Relief is available in the form of credit for taxes paid in India in case they stay in tax resident countries.

Limits and conditions on repatriation – Well the limits and conditions for repatriation differs based on the funds used for buying property in India. If property acquired as per the foreign exchange laws, then the amount of repatriation price will remain restricted to initial purchase cost. Gains made on foreign source funds falls under repatriation of general limit of 10 lakh per financial year.

These are some of the solutions to make property buying easier in India for the NRIs. For exploring more, keep a tab on the Tax Section Rules laid by RBI.

Author's Bio: Moumita Dasgupta, a financial blogger and the owner of bizandfiz, shares her knowledge and expertise of various financial topics. A clear view on market, business, Forex, funds, personal finances etc. are the subjects she perfectly underlines through her articles.  Find Moumita on Google+

Sunday, 17 November 2013

Bank Card Protection Features: Debit and Credit Cards

Both credit cards and debit cards offer several layers of security to protect customers from fraud and wrongful use. If you are someone who likes the convenience of making cashless transactions using a credit or a debit card, it is best to be aware of card security features so you are able to make the most out of your card.

Zero liability

Zero liability protection does not hold the cardholder responsible for unauthorised purchases – both offline and online – made using a credit or debit card. Now a basic feature for almost any credit or debit card, the issuer reimburses stolen funds to the cardholder. There are usually limits to coverage and customers must immediately report any questionable items on their statement within a limited amount of days.

3-Digit Security Code

Usually found at the back of the card, this is a security feature that confirms to the merchant that the card being used for a transaction is in the customer’s physical possesion.

Unique Personal Codes

Major providers have enabled an added layer of security feature for credit cards, wherein customers will be asked by any participating merchant for a unique code during the checkout process. The unique password or code will be known only by the card issuer and the customer.

Virtual account numbers

This identity theft protection feature, available for both debit and credit cards, allows users to generate a temporary card number that could only be used for one transaction. This is especially useful if you want to hide your real credit or debit card number when shopping online.

Identity theft insurance

An optional security feature for credit cards, insurance against identity theft would usually cost the customer a little extra. Coverage typically includes legal fees, lost wages, telephone bills, and other expenses/income loss associated with trying to resolve a credit dispute.

Retail purchase protection

Now also available to debit cards as well as credit cards, retail purchase protection offers customers protection in case goods they purchased using their bank card is stolen or damaged accidentally. Retail purchase protection is limited to up to 90 days after date of purchase.

Extended warranty

 Another popular credit card security feature that is now available for debit cards is extended warranty, wherein the card issuer extends warranty for purchased goods.

Photo security

This optional credit card feature includes the cardholder’s photo printed on the card to discourage the fraudulent use of your credit card at checkout counters. Some debit cards have made this feature available for an extra fee. The key thing to remember is to protect your credit card information as well as you can and only use your debit cards with merchants you can trust.

Generally, credit cards offer an advantage over debit cards as government laws have made it the responsibility of credit card issuers to compensate cardholders should they fall victim to fraud. Debit cards do not enjoy the same level of legal protection. However, as most banks and financial institutions that offer credit cards also offer debit card products, they have made available most credit card security features available to debit cardholders as well.

Author's Bio:

Gilbert Bermudez writes for Compare Hero, Malaysia’s leading bank card comparison website. Loves fishing, swimming and a hobbyist.

Twitter Delicious Facebook Digg Stumbleupon Favorites More

Design by Free WordPress Themes | Bloggerized by Lasantha - Premium Blogger Themes | Free Samples By Mail