Types of Investment Opportunities in India for investors.

Having one of the most vibrant stock markets in Asia, ways to invest in India are what most investors the world over are looking for. But before you take the decision to plough your funds into India, you need to check out the laws that are prevailing in your country and the investment regulations in India. Over the years, after the reform process took up pace, liberalization made the country come to terms with the world and globalization.

Types of investors

If you want to trade in stocks in India you need to open a demat account and home in to a broker with one of the two of the principal stock exchanges. Your broker should be a member of registered directly with the Security and Exchange Board of India of either the Indian stock exchange’s like the NSE (National Stock Exchange) or the Bombay Stock Exchange (BSE). If they are direct members, you can also open a direct bank demat account with them.

Usually, investors in any of the world’s stock markets are either individual or institutional. If you are investing on your own, you would be known as an individual investor while an institutional investor is a mutual fund or a company that is entrusted with the money of others. It could be domestic or foreign and as an individual, you could be a resident of India or a non-resident.

You could be in the business of managing other people’s money, a mutual fund or a pension fund. People may have entrusted their money with you for making it grow. That makes up four distinct types of investors in the stock market of any country and when they invest; they participate in as four different entities. If you compare India to the US or any other western country where restrictions are less and there is more freedom for investors, you could be a bit worried.

No need to worry

But, there is no need to worry as India has opened up in the last two decades and it is more easier and safer to invest in various Indian investment opportunities than in any other South Asian country. The economy is on reform mode and lots of new products, ideas and services are coming up with increasing regularity. As an emerging economy India has her share of rules and regulations, but when you look at the broader picture, the situation is more conducive to investment and laws are being tailored to make it more investor friendly.

If you are a resident of India, you have fewer restrictions and can invest directly and carry on trades in the stock market. You have considerable freedom although restrictions of SEBI and BSE/NSE would be applicable to you like they do for any other participant in the stock market. For insider trading you would be subject to the prevailing regulations by the bodies concerned. Mutual funds and financial companies can also invest in the stock market and buy stocks. If they wish, they can do it themselves if they are in conformity with the SEBI guidelines and regulations.

In the next category, falls the non resident Indians (NRI) and the FII or the foreign institutional investors. They could be individual NRI”s or they may manage and operate institutions that would be investing in stocks in India. If you are an NRI, you can directly buy and sell stocks through a stock exchange in India and stay invested. If you are not a citizen of India and have no ancestral ties with India, you would not be able to directly invest through the Indian stock exchanges.

But you can take a circuitous route by investing through ADR or American Depository Receipts or floated mutual funds by foreigners. As a FII or a foreign institutional investor, you can invest but you need to follow the regulations of the Reserve Bank of India and the SEBI.

A great investment broker from India is: NriInvestIndia.com

Know PAN – Find PAN Number without any PAN Proof in India.

There are many people who are having a hard time remembering their old pan numbers, especially if they have lost their pan card or do not remember the old pan number. Finding out the correct pan is not only a difficult task but also very tedious if one doesn’t have any proof of the pan allotted to him. The good news is that there are a few brokers who can assist you to help you know your pan, if you have no pan proof at all.

Are you asking any of the below questions to yourself:

What is my pan number?

I want to know my pan?

How to find my old pan number online?

How to know my pan number?

Well if any of the above questions is coming to your head, then let us tell you that you have come to the right article where you will know the way to find your permanent account number.

The Income Tax Department has made it possible for users to find out the old pan number which was allotted to them, especially if the pan holder says that I do not remember my pan card number.

Are you ready?

Yes I want to know my pan:

http://www.nripan.com/know.html

On the above link you can go and put in your pan questions or inquiry, and they will get back to you with your pan number, which for some reason you are unable to retrieve online.

In a case where you are frustrated in knowing the pan number, you may go to the link above and find your pan details. Once you have those details you can take a print out and then apply for a replacement/duplicate pan card online. Best option is to go directly to the government to apply for such a tax number from India or you can take help of a broker like: www.PanCardOnline.com

You would have to provide such a pan proof that you have fetched/retrieved online, and along with this proof you can attach a passport copy as an ID (identity) proof along with an address proof. If you are a NRI or a foreign passport holder (OCI or PIO) then also you can apply for such a duplicate pan card even though you do not have any address proof in India, meaning you can still acquire and update your existing pan card without having any Indian address proof.

Do not worry if you cannot find pan no or a way to locate your pan, as now you can go ahead and find your pan by address, pan with address, pan with date of birth, etc.

Enjoy yourself and happy applying.

India’s Taxation – a Story of Indian Tax Rates and Rules:

Many foreign investors have reservations about the Indian Tax System as they feel it is too complicated and hard on them. But in reality, things have been streamlined in recent years to provide lucrative opportunities for direct inflow of investments. Globalization and need to get more money from abroad up and running has made the tax structure and system more investment friendly than in the past.

Clearly demarcated tax structure

Among the countries in South Asia you are looking for investing, India is the best bet as it has a highly organized and developed tax structure. The amount that needs to be paid is clearly separated and managed by the state, central and the local authorities. All taxes on income are levied by the central government including excise and custom duties, tax on services, but the state governments are only empowered to tax income from agriculture.

Tax administration and rationalization has been going on in India for the last 10 years leading to better simplification, compliance and enforcement. The Indian Income tax department has got most of the tax return filing online, making it simpler for the tax payers. Excise duties, professional tax, value added tax, land revenue and stamp duty on real estate buying fall under the purview of the states while taxes on properties, water and other utilities are levied by local authorities. Even though things are better nowadays on the tax front, the process of streamlining them as well as making them easy to follow is very much on.

If you are planning to start a company in India, taxes are levied on all incomes earned from global and domestic operations.  Those companies that are non-resident, are taxed on the basis of their incomes earned form their operations in India. Companies are termed resident when their offices and managed are based in India. Indian companies or corporations pay 35% tax and a surcharge of 2.5% while those based abroad require paying 40% and a surcharge of 2.5%. You have to pay a surcharge of 2% on your tax payables known as a cess on education.

Every budget has lucrative benefits

There are always something lucrative and new that comes out with each year’s budget much to the delight of investors wanting to park their funds in India. For those corporations that have taxable incomes of Rs.1 crore or less need not pay the surcharge anymore. Investors usually delight in the new incentives that are liberally showered to get more investments flowing in from abroad. You can also benefit from tax holidays in some areas in India that could extend for five years. But the rate of dividend tax has been raised by 2.5% while the mutual fund companies have to pay nearly 25%.

As the government is gearing up for developing education among the backward classes of India, educational cess and charges are levied on investors and companies. Capital gains taxes are charged both for the short term and long term. Long term capital gains tax becomes applicable for assets that are with you for three years or more, but for shares and mutual finds the period is for one year.

But the sale of equities and mutual funds are exempt from tax while for other capital gains that are long term, the rate is a basic 20%. Normal rate for corporate taxes apply for short term gains while for equities and mutual funds the rate is 10%.

For individual income tax, the slabs change with every budget taking into consideration the utmost needs of taxpayers in that given year. There are lots of relief options for assesses in every given year to take advantage of several tax saving schemes that are always available and they are very much a part of the Indian tax system.

Please remember that this article just gives you some basic outline as to how the tax in India works, however in order to have in-depth knowledge on various taxes like service tax, wealth tax, India income tax you need to consult a professional legal consultant also known as chartered accountants (CAs). Also be advised that for you to file taxes in India one needs to have a PAN card (permanent account number) or TAN number.

>> Email me – if you want to File TAX OR have Questions.!!