Tips on Filing and Saving Income Tax in India for NRIs.!

Yes filing tax returns on Indian taxes have always been confusing, but thanks to the new changes and tax rules that Indian income tax department has brought. They have brought some new tax exemptions for NRIs, some great tax rates on India’s service tax, wealth tax, property tax, gift tax, income tax, capital gains tax, dividend taxes, India taxation on investments, real estate sale taxes, thus making the tax calculation easy for income tax return filing.

Although NRIs are living abroad and away from India, most of them still pay taxes in India. We have put together so tips for you to use on filing Income Tax in India.  The tax in India for each year starts on April 1st and ends on March 31st. You have to add up your income for that year and pay taxes before the end of March every year.  To get your income tax return, you need to file before the end of July every year. Most need to file for their Income Tax return with the form ITR-1.

Recently, the level of difficulty with filing your taxes has gone down a great deal. Some of the rules have changed. There is no tax until you reach 100,000 rupees. With 150,000 rupees, there is only 10 percent tax and for 250,000 there is only 20 percent tax. The rules also show that women do not have to pay taxes with any less than 135,000 rupees and men do not have to pay taxes with any less than 100,000 rupees. Some major tax deductions are from mutual funds, life insurance policies, some bonds, and many other investments. Most donations to institutions are free of tax. If you have invested, you need to send proof to the Income Tax Department. Consider all of the above and then do your taxes.

There are not very many investments that you can make today that will not be taxed. There were a lot more in the past. The investments that have interest free of tax are provident funds, earnings from the stock market, and dividends from mutual funds. To invest in the provident funds, you can do it through the State Bank of India and the Indian post offices. These will be free of tax.

The gains that you earn from the stock market and via mutual funds most likely do not have tax. Although the profits don’t have tax, there is still not guarantee that you will always profit. To earn money via the stock market, you need to study and practice a lot. For help, contact: There are companies and brokers that can help you manage your whole investing portfolio. You can find a lot of them on the internet.

Every citizen of India making money has to file a tax return every year. If you do not have any taxes to file, you need to file zero taxes every year. NRE accounts can be opened in some investment areas. These areas should be invested in be non-India citizens. Every citizen of India, living in India and living abroad, need to obtain a PAN card for tax purposes. PAN stands for Permanent account number or the tax number. It is given by the IT Department. For help with obtaining a PAN card from abroad, visit:

If you are not a Indian citizen and you have some sort of financial business or investments in India, you too need to have a PAN card. When it comes time to file your tax returns, if you are living abroad, you might get extra time depending on the circumstances. You will need to contact them before the deadline if you need extra time. Things have been made easier since they started accepting online tax return forms and allowed NRIs to download the Indian tax application forms, and also the money the government pays back in tax rebates can be directly put into your personal bank account in India. These tips should be helpful when doing your taxes in India.

Though it has made easy to file taxes online by the Indian government, at times still non resident Indians living abroad, especially in countries like USA – United States of America, UAE, Dubai, Qatar, Oman, U.K – United Kingdom, Australia, Canada face some confusion, thus it is advised to take professional help from some certified and registered CAs – Chartered Accountants. One good company offering NRI Tax services is:

How to Get a PAN Card or the PAN Number from India?

PAN stands for Permanent Account Number (PAN) which is a 10 digit alphanumeric number issued by the Income Tax Authority of India in the form of a laminated card. It’s compulsory to quote PAN in all financial & investment related plus tax related transactions carried in India & on return of income. It can be considered as a Indian TAX number, like a SSN in the U.S.A.

Due to the interest rates in India, many Indians that are living in the US and many other countries are investing money into India. The interest rates in India are 5% higher than in the US. Although many Indians are investing in India, there are some things that they must take care of before doing so. The first thing that you will need is a PAN card. PAN stands for Permanent Account Number. It is required, when investing as well as many other things, which all Indians can quote their PAN. I can let you know the procedure for obtaining a PAN card in this article itself.

You do not need to be in India to apply for a PAN card, you can do it just as easily from abroad. A PAN card is necessary for a lot of different things, but can also just be used as a form of Identification. A PAN card is necessary for NRIs, OCIs, and PIOs. Even foreign citizens with Indian origin can have a PAN card. To apply for a PAN card, you will need the application filled out, two passport size photos, address proof, the fees to submit your PAN card, and a passport copy. Bank statements are the easiest proof of address. Any other address proof should be apostilled of attested by the Indian embassy. The application for a PAN card is made very simple so that you can quickly fill it out.

There a many brokers who are appointed by the IT Department to submit your PAN card forms on behalf of you. Websites such as: and are brokers willing to help you obtain a PAN from abroad. This will require you to mail or courier these documents to them. A courier is recommended because then you can track your important documents. Usually an applicant will receive their PAN cards by a speedy post mailed by the PAN department. This takes about 15 business days.

Again, a PAN card is used for a variety of things.

·Shopping for high priced items

·Filing for your income tax returns

·Investing in India – To trade shares, buy mutual funds, insurance, apply for loans, open demat account, etc.

·Real estate and the buying and selling of property in India

·And many more things

It is always better to obtain your PAN card sooner than later because the process for obtaining them might get more and more difficult or more expensive. It can be a very simple process, just contact one of the brokers I have mentioned above and get started. These brokers and extremely friendly, prompt with their responses, and get the job done in a very timely manner.

How to do Futures Trading in India & what is a future contract?

Let’s begin with understanding the futures contract. A futures contract is a kind of contract in which two different sides agree on the price of a commodity that will be given in the future. If you purchase a futures contract, you are agreeing to buy something that is not available at the time, but is available in the future. When investing your money into a futures contract, it is made pretty simple; you do not have many responsibilities. Most investors chose to invest in futures because it hedges the risk. Futures are mainly looked at as just a financial tool, but they are much bigger than that and it is always advised to learn how to trade futures before getting into futures trading.

Futures contracts were created to make it easier for buyers and sellers and to have a way for investors to manage their risk. The futures market takes a lot of studying to understand how it truly works. Keep in mind that investing in anything can have great risk; even futures come with a risk. Trading futures is just like trading anything else, you need to have a strategy to make it work for you and you need a lot of practice before you can expect to be good at it. Futures contracts have made it easy for people to pay for things across the world with no problem. The technology today has made it very easy for anyone to invest in anything. You don’t even have to leave your house.

When you buy something like internet for your house, you are given a price that you will have to pay every month for the time that you have the internet. You are in a contract that says that you will pay a certain amount of money at a given time and receive internet every month in return. Futures contracts are very similar to that. This contract is that you will pay a certain amount at a certain time; it doesn’t matter if the price value goes up or down, you will still have to pay that price. By getting into a contract like this, you have lowered the risk of having to pay more money, but you have increase you risk of having to pay more if the price decreases.
FYI: Please be advised that Indian taxes on such financial instruments could be a little different, so it is always advised to contact an expert tax consultant.

In a nut shell, this is how a futures contract works, only not with setting up internet in your home, many other things are involved. So anything that you get into and sign a futures contract for will have a set price and a set time in the future. The price and time will not change, no matter what. It is the futures contract that is purchased and sold in a futures market.

The futures contract has to sides, the side that agrees to sell a commodity at a given price on a given date, and the side that agrees to buy a commodity at a given price on a given date. There can not be a futures contract without both sides. The price, the date, the commodity, and the quality of the commodity are all written into the futures contract. The contract is very specific. The price is of course negotiated and agreed upon between the two sides.

A great emerging market to trade such kind of derivative product is the Indian financial markets. Reason being the recent upsurge in the demand of capital and economic growth, and besides that many analysts believe that the future of India is very bright.

One of the top websites to trade derivates in India, including futures and options & get Indian futures charts, live news and real time quotes on trading online is

Indian Stock Market – A Strong Emerging Market in Asia.!

The Indian stock market has always been a wonderful avenue for all those investors who wish to reap exponential growth and returns on their stock portfolio. India has recently been a solid emerging market, and the future of India definitely looks strong. With this view, we thought of brining you an article that depicts about what India’ stock market is all about. So all those beginners who wish to invest money in India, may treat this article as a tutorial about Indian stock market, to hone their investment knowledge.

To begin: The Indian stock market has many stock exchanges, but prominently the 2 big ones are:
1. National Stock Exchange – Also known as NSE.
Bombay Stock Exchange – Also known as BSE, located at the Dalal Street in Mumbai.

The Bombay stock exchange (BSE):

This stock exchange is located in Bombay, India. It is the largest and the oldest Indian stock exchange. Seventy percent of India’s trading is done at this exchange. SENSEX is the index that was made for the Bombay stock exchange. Its job is to reflect when the stocks go up and down for India and abroad. SENSEX is now very important to the Indian market. SENSEX and The Bombay stock exchange are the reasons for the Indian market growing so rapidly.

The National stock exchange (NSE):

This stock exchange is located in Delhi, India (the nation’s capital). It is the oldest market dealing with bonds. They deal with many different types of bonds, but mainly bonds and governmental bonds. Like SENSEX was the index made for the BSE, Nifty is the index that was made for the National stock exchange. Nifty takes care of around fifty percent of all the bond trades that happen at the NSE. The NSE is trying hard to make equal opportunities for the people not in India to trade. The NSE differs from the other stock exchanges in India because it pays taxes.

What is Sensex and Nifty indexes?

Because SENSEX is the index for the BSE, if the SEXSEX gets higher, that means that the shares of the companies in BSE have gotten higher. It is the same concept if the Sensex gets lower, which means that the shares of the companies in BSE have gotten lower. Nifty does the same thing for the National stock exchange.

There are many different stock exchanges in India, but these two are the most popular ones. Within these two stock exchanges, the majority of the trading is done. This means that the most trading is done within SENSEX and Nifty, making them the most popular indexes in India.

Investing in India made easy for NRIs & Foreign nationals/citizens.

You can invest in many different assets including: Stocks, Bonds, Equity, Currency, Commodities, Real Estate, etc. Gold is so much more pricy than we are used to. Investing in equity is becoming the best idea for investment. You would need to have a zero percent interest rate.

Why Indians living abroad should invest in
India: The Benefits & Advantages:

There are many reasons why you should invest in India; here is a list of the major ones mentioning how India is NOT affected by this recession.

·India is doing surprisingly better than anyone else during this recession. This is because they have a lot of savings unlike the United States and United Kingdom.

·India’s population of young adults is outstanding. While other countries are ageing, India will have the majority of young people. This means that a very large percent of India will speak English, the world wide language.

·India has high GDP and low imports and exports, which is another reason why the recession is not hitting them hard.

·The recession has caused car companies all over the United States to shut down and file for bankruptcy, yet the car companies in India are doing really good. This means that people in India have the money to purchase cars during the recession.

The future of the Indian stock market:

Any true trader/investor will tell you that the higher the risk, the higher the reward. The Indian stock market future is very risky as well as any other market. Obviously, there will be times when the market is up and when the market is down. The Indian market is growing faster than many other markets across the world. This portrays an image of a very bright future for the Indian stock market.

Tips to Investing in the Stock Markets of

Here is the biggest tip for you if you would like to start investing in India.

  • Never let your emotions get to you when you are investing. You need to keep your focus and always pay attention to your losses. Keep them small. Never lose control. You always need to have complete control over when you buy and sell as share. Try your best to never let the losses get to you, try to shrug them off. The main key is to keep your losses small and your winnings big.
  • When you invest your money, only invest the amount you can afford to lose. If you decide to invest a bigger amount than you can afford, you emotions will kick in and it is very hard to concentrate and come out with profit at that point. Try your hardest possible to keep your emotions away for trading/investing.

If you are interested, there are websites that can provide you with more tips, education, Indians stock quotes, free financial news, help you with opening demat accounts, trading for NRIs, investment advising that can be very helpful to you, such as: