How NRIs Can Cut Taxes on Indian Income
Are you an NRI earning from India?
Here’s a smart move: you can reduce or even eliminate taxes on your Indian income — legally and easily!
If you live outside India for 183+ days a year, you qualify as an ‘NRI’. That brings you some powerful benefits:
🔹 NRE/FCNR Interest is 100% Tax-Free – NRE and FCNR are bank accounts in India where your foreign earnings grow without tax. FCNR earns interest in foreign currency — safe from exchange rate changes!
🔹 Lower or Zero Tax on Dividends & Capital Gains — thanks to international tax treaties (called DTAAs).
🔹 Zero Tax on Mutual Fund Gains under certain treaties (like India–Singapore DTAA).
💡 New Smart Move – Section 115F
Sold shares or foreign assets bought with NRE funds? Reinvest that amount in similar assets within 6 months — and your Long-Term Capital Gains can be tax-free! Just hold for 3 years. Do this repeatedly and keep saving.
How to Claim Benefits
- Tax Residency Certificate (TRC): From your country.
- Form 10F: Submit with TRC to Indian tax authorities.
- DTAA Provisions: Match income with applicable DTAA clauses.
- Timely Reinvestment: Crucial for Section 115F benefits.
Even for exempt income, TDS may apply; ensure correct paperwork to avoid excess deductions. Combining DTAA advantages with Section 115F reinvestment allows NRIs to achieve near-zero tax on Indian earnings.
Why pay more when smart planning helps you save?
(Contributed by Aditya Bhola, Financial Planner, Team Sukhoi, Hum Fauji Initiatives)
Is Your Retirement Corpus Battle-Ready for Your Financial Goals?
Retirement isn’t the end—it’s your next mission. And like every mission, it needs planning, preparation, and the right gear. With increasing life expectancy and rising living costs, your retirement savings must be strong enough to support you for 25 to 30 years or more.
Before Retirement: Build Your Base
In your working years, you balance EMIs, children’s needs, and lifestyle costs. But don’t lose sight of the future.
Want ₹75,000/month after 60? You’ll need around ₹2.5–₹3 crore, depending on inflation.
Start early. Small SIPs (Systematic Investment Plans) in mutual funds grow big over time.
After Retirement: Income Must Continue
For Armed Forces personnel, pension is a strong foundation. But is it enough? Medical costs, inflation, and unforeseen needs demand more. Strengthen your income with Tax-efficient Mutual Fund SWPs – Create a second monthly income with inflation protection.
Inflation is the Silent Enemy
Your monthly expenses of ₹50,000 today = ₹1.3 lakh in 20 years.
If your plan isn’t inflation-proof, even a big fund may fall short.
The Winning Strategy
Pension + steady income + smart investing = stress-free retirement.
Save regularly, invest wisely, review often, and mix growth with safety. That’s how you make your retirement corpus battle-ready.
(Contributed by Riya Bhandari, Relationship Manager, Team Arjun, Hum Fauji Initiatives)
Gold and Silver Surge: Is It Time to Invest? If so, How?
With global tensions and fears of economic slowdown, gold and silver are making a comeback—and smart investors are paying attention.
Gold & Silver MFs (Mutual Funds) let you invest in these precious metals without buying physical jewellery or coins. They’re simple, secure, and easy to buy or sell anytime.
Why Should You Consider Investing in Gold and Silver MFs?
- Inflation Protection – Precious metals often hold value when prices rise.
- Portfolio Diversification – They don’t always move with stocks, reducing risk.
- Crisis Shield – Tend to do well in market crashes or geopolitical tension.
- No Storage Hassle – Easy to buy/sell like any other mutual funds.
- Affordable Start – Invest with just a few hundred rupees.
But Consider the Flip Side:
- No Regular Income – Unlike FD or bonds, MFs don’t pay interest.
- Price Fluctuation – Prices can fall when global fears ease.
- Not a Standalone Strategy – Over-allocating to metals can hurt long-term growth.
🔁 Ideal Allocation: 5–10% of your portfolio—enough to cushion risk, not derail goals.
Gold and silver won’t make you rich overnight—but they can protect what you’ve worked so hard to build.
(Contributed by Anjali Tomar, Relationship Manager, Team Arjun, Hum Fauji Initiatives)
What did our clients ask us in the last 7 days
Question – I jointly own a house property with my wife, and we plan to sell it this year. Should the sale proceeds be received entirely in my bank account, or should they be split between my and my wife’s bank accounts? Also, how can we both claim the capital gains exemption under Section 54EC if we invest in eligible bonds?
Our Reply –
This is an important aspect of property sale planning. Here’s what you should keep in mind:
- Sale Proceeds – How Should They Be Received?
- If the property is jointly owned (e.g., between spouses) on paper, the sale amount should be split as per ownership in which the price of purchase was contributed by the two owners. Merely mentioning it in the property documents as joint is not the proof of the ratio in which ownership will be counted.
- Each co-owner should receive their share directly into their own bank account, where they are the primary account holder even if the bank account is jointly held.
❌ Avoid transferring the entire amount to one person—it can trigger tax issues or scrutiny.
- Rationally calculate what is a better way for tax planning of Capital gains?
- The seller(s) can either pay the tax at prevailing rates and invest the amount in good investment avenues; Or invest the Capital Gains in specified Capital Gains Bonds (under Tax Section 54EC like NHAI, REC CG Bonds); Or invest in another residential property.
- Suit which method, or a combination of methods is best in your case as per requirements and tax saving purposes.
- The tax exemptions are individual, not joint—each co-owner’s capital gains part needs to be treated separately.
A well-planned sale doesn’t just save tax—it protects your wealth. If you’re unsure about the next steps, we’re here to ensure every rupee works in your favour in such cases.
(Contributed by Team Arjun, Hum Fauji Initiatives)
📞 Need help planning your capital gains strategy on sale of a property or any other asset? Reach out—we’re here to help you in each aspect of your asset sale journey.
