Faq's

Tax planning is the process of analyzing your financial situation to minimize tax liabilities legally. It involves using available tax-saving instruments, deductions, and exemptions to optimize your tax outflow while aligning with your financial goals

Tax planning helps you:

• Reduce your taxable income and save money.
• Ensure compliance with tax regulations, avoiding penalties.
• Align your investments and financial decisions with long-term goals.
• Improve cash flow management by optimizing tax payments.

Tax-saving tools include:

• Investments under Section 80C (e.g., ELSS, PPF, Life Insurance).
• Deductions for health insurance premiums under Section 80D.
• Tax benefits on home loans under Sections 24(b) and 80EE.
• Contributions to the National Pension System (NPS).
• Exemptions like HRA and Leave Travel Allowance (LTA).

Yes, tax planning supports wealth creation by encouraging disciplined investments in tax-saving instruments that also offer growth potential. For example, Equity-Linked Savings Schemes (ELSS) combine tax benefits with equity market returns, and contributions to NPS build a retirement corpus.

NRI (Non-Resident Indian) Services refer to specialized financial, investment, and legal solutions designed to cater to the unique needs of Indians living abroad. These services include assistance with bank accounts, tax planning, investments, property management, repatriation of funds, and compliance with Indian regulations.

NRIs can open the following types of accounts in India:

• NRE (Non-Resident External) Account: Allows income earned abroad to be deposited in India in Indian Rupees. The principal and interest are fully repatriable.
• NRO (Non-Resident Ordinary) Account: Used for managing income earned in India, such as rent or dividends. Repatriation is subject to limits.
• FCNR (Foreign Currency Non-Resident) Account: Maintained in foreign currency, protecting against exchange rate fluctuations.

Yes, NRIs can invest in various financial products, including:

• Mutual Funds through NRE or NRO accounts.
• Equity and Stock Markets under the Portfolio Investment Scheme (PIS).
• Real Estate, such as residential or commercial properties.
• Fixed Deposits in NRE/NRO/FCNR accounts.
• Government bonds and National Pension System (NPS).

NRIs are taxed only on income earned or accrued in India. Common taxable sources include:

• Rental income from properties.
• Capital gains from the sale of assets.
• Interest earned on NRO accounts.

Certain incomes, like interest on NRE and FCNR accounts, are tax-exempt in specific cases.

An FPI is an investor or investment fund registered outside India that invests in Indian financial markets, such as equities, bonds, or other securities. FPIs typically aim to benefit from India’s economic growth and market potential while adhering to regulatory guidelines set by the Securities and Exchange Board of India (SEBI).

To register as an FPI in India, foreign investors must:

• Apply through a Designated Depository Participant (DDP) approved by SEBI.
• Fulfill eligibility criteria, such as domicile, net worth requirements, and fit-and-proper norms.
• Provide necessary documents, including identity proofs, declarations, and compliance with anti-money laundering (AML) regulations.

FPIs can invest in:

• Equities: Listed shares, equity derivatives, and initial public offerings (IPOs).
• Debt Instruments: Government securities, corporate bonds, and infrastructure debt funds.
• Mutual Funds: Units of domestic mutual funds in equities or debt schemes.
• Alternative Investment Funds (AIFs): Participation in private equity or venture capital funds.

FPIs are subject to tax on income earned in India, which includes:

• Capital Gains: Taxed differently based on the type and duration of investment (e.g., short-term or long-term capital gains on equities and debt).
• Interest Income: Taxable on debt instruments, often at concessional rates under Double Taxation Avoidance Agreements (DTAAs).
• Dividends: Taxed at a flat rate, with the possibility of DTAA relief.
• FPIs must comply with Indian tax regulations, and professional advisory services are often required to navigate complexities.

A Will is a legal document that specifies how an individual’s assets and estate will be distributed after their demise. It is important because:

• It ensures that your assets are distributed as per your wishes.
• It minimizes disputes among heirs and beneficiaries.
• It simplifies the legal process for your family and ensures smooth estate transfer.

To be legally valid, a Will must:

• Be written and signed by the person creating it (the testator).
• Include details of the assets and their intended beneficiaries.
• Be signed in the presence of at least two witnesses, who must also sign the Will.
• Clearly mention the date and the name of an executor (optional but recommended).

Yes, a Will can be changed or revoked at any time during the testator's lifetime. This can be done by:

• Drafting a new Will that explicitly states the revocation of previous Wills.
• Adding a Codicil, which is a legal document to amend specific parts of an existing Will.
• Revocation is also automatic if the testator destroys the original Will with the intention to revoke it.

While a lawyer is not mandatory to draft a Will, professional assistance ensures:

• The Will complies with legal requirements and avoids future disputes.
• The document is free of ambiguities and clearly communicates your intentions.
• Proper advice is provided on complex matters such as estate taxes, asset division, or appointing guardians for minors.