Nrk Sandesh Sep 2013

8/13/2019 Nrk Sandesh Sep 2013

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Recent developments

NRK Sandesham

Wherever you go we are thereA monthly news letter from,

NRI Services, State Bank of India,

Local Head Office, Trivandrum

: [email protected]

: 0471 2336383, 6549966

: + 91 9447778606 Volume: III Issue No. : 6 September 2013

. . .

Chief economic advisor Raghuram G Rajan, a former

International Monetary Fund (IMF) chief economist and

Chicago University professor famed for his perceptive

warnings about the global financial crisis of 2008, willbecome one of the youngest governors of the Reserve Bank

of India (RBI), when he takes charge on

5thSeptember 2013.

Deregulation of Interest Rates

In a bid to attract foreign currency, the Reserve Bank

deregulated interest rates on NRI fixed deposit schemes

(FCNR, NRE) and exempted such term deposits from CRR

and SLR requirement. These instructions will be valid up to

November 30, 2013, subject to review.

SBI expects Rs 4,000 crore in capital infusion

After the finance ministry announced it intended to

complete the state-run banks' recapitalisation effort by

September, State Bank chairman Pratip Chaudhuri has said

he expects Rs 4,000 crore infusion.

Government looking at allowing unlisted Cos to launch

IPOs overseasFaced with the sliding rupee, the government is considering

allowing unlisted companies to launch public offers in

overseas markets and raise funds in foreign currency.

Under the current norms, only those companies that are

listed on the domestic stock exchanges are permitted to list

on bourses overseas. The move is expected to help the

companies meet theirforeign exchange requirements and at

the same time ease pressure on the domestic currency

which has beentouching new lows over the past couple omonths. The proposal will also help companies gain access

to othermarkets at a time when the domestic stock market is

witnessing massive sell-offs.

The government reduced the import tariff value of gold to$458 per 10 grams due to fall in its global prices. It also cutthe import tariff value of silver to $783 per kg.Earlier, tariff value - the base price on which the customsduty is determined to prevent under-invoicingof gold andsilver stood at $461 per 10 grams and $803 per kgrespectively

RBI relaxes PIS for NRIsIn order to attract inflow of foreign currency, the RBI on

Tuesday simplified rules governing investments by nonresident Indians (NRIs) portfolio investments like equitiesand debt. RBI has now dispensed with the unique code for

branches and said banks shall be "free to permit itsbranches to administer the PIS scheme for NRI. Thedesignated branch of the bank will grant one time

permission to the NRI applicant for purchase and sale oshares or convertible debentures of an Indian companyRBI said in a notification. Shares or debentures purchasedwill be held and registered in the name of the NRI.

List of Newly opened SBI Branches in Kerala

No. Branch Name District email id

1 PBB Ottapalam Palaghat [email protected].

2 Chingavanam Kottayam [email protected].

3 Ponkunnam Kottayam [email protected].

4 Puthiyakavu Kollam [email protected].

5 YMCA Junction Ernakulam [email protected].

6 NRI Kottakkal Malappuram [email protected].

7 Thykoodam Ernakulam [email protected].

Team Leader:Shri. Akella.V.Prasad, DGM (PBBU & NRI)Our Editorial Team:Shri. GeorgeJohn- Chief ManagerShri Lalson Jacob - Assistant Vice President

SBI have opened 15,000thBranch in Sooranam (TN) on 17 thAugust 2013 by Shri P. Chidambaram, Hon ble UnionFinance Minister. SBI has also opened a new Branch inSeoul thereby making 189 foreign offices in 35 countries.
http://economictimes.indiatimes.com/definition/marketshttp://economictimes.indiatimes.com/topic/foreign-exchangehttp://economictimes.indiatimes.com/topic/foreign-exchangehttp://economictimes.indiatimes.com/definition/markets


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NRI AND TAXATIONTAXABLE INCOME:

A person who is non resident is liable to tax on that income, only which is earned by him in India. i.e Income is directly

or indirectly earned in India or construed to be earned in India. Non resident,having annual taxable income in Indiamore than Rs 2,00,000should pay tax. The return can be filed in the ITR applicable for the purpose. NRIs must also

obtain Income Tax PAN number not only for filing Income Tax Returns, but for many other purposes also.

For taxation purposes of NRIs , there is no differentiation between Senior Citizen and normal individual, irrespective of their

ages NRIs basic tax exemption limit is Rs 2,00,000

TAX EXEMPTION:

Income from the following investments made by NRIs/PIOs out of convertible foreign exchange is totally exempt from

Tax:

Deposits in NRE account and Foreign Currency Non Resident (Bank) account (FCNR account). In this context itshould be noted that the tax exemptions relating to NRE bank deposits will cease immediately upon the NRI/PIO

becoming a resident in India whereas the interest on FCNR Bank deposits will continue to be tax free as long as the

NRI maintains the status of Resident but not Ordinarily Resident or until Maturity.

Units of specified Mutual funds, other specific securities, bonds and savings certificates. Dividend declared by Indian Company. Long term capital gains arising from transfer of equity shares in a company and for equity oriented schemes o

Mutual funds, which are subject to Securities Transaction Tax.Long term capital gain on sale of bonds, mutuafund schemes other than equity will be taxed at % with indexation benefits and 10 % without indexation

benefits. Short term capital gains will be added to the total income and tax needs to be paid at the applicable tax

slab which the NRI belongs.

TAX DEDUCTION AT SOURCE:

TDS will be deducted only on those incomes of Non Resident Indians

(NRIs) which are liable to tax in India. If the income is tax free in India like

long term capital gains from equity shares, there would be no TDS.

1. Bank Deposits

The interest earned only on NRO deposits (SB, FD and RDaccounts) is taxable at source at a flat 30 percent plus cess

irrespective of the interest amount. Unlike Resident Indians, NRIs

cannot submit the Form 15H and 15G for getting exemption from

TDS. NRIs can only avail the benefit of lower TDS rate under the respective DTAA (Double Taxation Avoidance

Agreement) by submitting the declaration form and Tax Residency Certificate to the banker within the specified

time limit of the respective financial year.

2. Interest on all other investmentsInterest earned on all other investments like corporate deposits and

bonds will be subject to TDS at 20% . In all these cases, the company

or party making the payment will deduct this tax.

3. Capital gains on securitiesShort term capital gains, that is, profits on sale within one year of

date of purchase, will besubject to a TDS of 15 per cent.

4. Debt mutual funds, corporate debenturesLong term capital gains from debt mutual funds and corporate

debentures (when sold in the secondary market) will be subject to

TDS at 10 per cent. Short term capital gains will be subject to a TDS

of 30 %

5. Capital gains on other assets like house property, goldLong term and short term capital gains will be subject to TDS of 20% and 30 % respectively.

6. Rental Income:Rental income earned in India is subject to TDS at 30 percent plus applicable tax.

NRI Meet, Pathanamthitta ( 10thAugust 2013)

Onam Celebration at NRI Trivandrum Branch


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TAX EXEMPTION CERTIFICATE:

The rate prescribed for TDS from NRIs income is the maximum rate of tax at which the relevant income is taxable

in India. However in majority of the cases, the actual tax liability will be less than this. In order to assist such a

situation, the Income Tax Act has prescribed a procedure under Section 197, whereby a NRI can apply to the

Income tax Assessing officer to issue a Tax Exemption Certificate , authorizing the payer of the income to deduct

tax at a lower rate or nil rate as the case may be. Any NRI who has obtained Income tax Exemption certificate needs

to submit it to the payer of the income who will follow the certificate and not deduct tax or may deduct at a lower

rate as given in the certificate.

DEEMED RENTAL INCOME:

NRIs who have more than one property in India , only one property in India is considered to be self occupied and

the remaining property even if it is not let out is considered to be rented out and tax is to be paid on the calculated

rent amount for such properties.

TAX TREATMENT OF OVERSEAS FINANCIAL ASSETS:

Foreign Exchange and overseas assets held/acquired/owned by NRI while he was abroad can be continued to be

so held and owned even after the NRI returns to India for permanent settlement. Such foreign exchange and

overseas assets can continue to accumulate or accrue income outside India and the balances can be utilised for

reinvestment or repatriated to India (without attracting Wealth Tax ) at any time within 1 year immediately

preceding the date of his return or later. This exemption period is limited to 7 successive years which immediately

follow the year in which the NRI permanently returns to India.

Property deals

This year's budget has changed the TDS laws relating to property transactions. When a resident Indian purchases a

property valued at over Rs 50 lakh, he has to deduct 1% TDS and deposit it with the government. However, if the

property belongs to an NRI, the TDS is 20% even if the property is worth less than Rs 50 lakh.

FILING OF TAX RETURNS

A NRI should file income tax returns for 2012-2013 if he fulfill either of these conditions:

Taxable income in India during the year 2012-2013 was above the basic exemption limit of Rs 2 lakh OR

If an NRI have earned short-term or long-term capital gains from sale of any investments or assets, even if the gains

are less than the basic exemption limit.

RECENT CHANGES

This year, the income tax department has made two important changes that you must be aware of. These changes

apply to residents as well as non residents.

1. Mandatory efile if taxable income over Rs 5 lakh

If you had taxable income in India that exceeded Rs 5 lakh in 2012-13, you must efile your tax returns. You can

either do it yourself using online efiling portals or take the help of assisted tax preparers.

2: Match your tax credits

From this year, the Income Tax department has introduced a system by way of which you can match your income

tax credits with your actual tax return. The tax credit statement is available in the form of Form 26AS.

NRI Meet Palakkad 3rdAugust 2013


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Lateral thinking - No. 7Try to figure out sensible letters and words, which cryptically represent a word, phrase,

or saying from the following

Answers of these ribuz puzzles will be published in the next issue

Answers of Lateral thinking No. 5 from July 2013 issue

1. Six feet underground 2. Glance back 3. Tricycle 4. Reading between the lines 5. Crossroads

RATES OF INTEREST ON NON RESIDENT DEPOSITS*

NRE Term Deposits-Retail and Bulk Deposits(w.e.f. 01/03/2013 (% p.a.))

Duration Interest rates (%) p.a.

1year -10 years 8.75

FOREIGN CURRENCY NON-RESIDENT DEPOSITS (FCNR(B)) (% P.A.) w.e.f 01/09/2013

CURRENCY USD GBP EURO CAD AUD JPY CHF DKK NZD SEK

1 year to less than2 years 2.67 2.87 2.48 3.37 4.51 2.41 2.24 2.67 4.93 3.40

2 years to lessthan 3 years

2.57 2.84 2.64 3.56 4.76 2.27 2.23 2.89 5.45 3.69


3.95 4.13 3.87 4.83 6.07 3.31 3.39 4.11 6.86 4.97


4.38 4.45 4.13 5.11 6.39 3.36 3.60 4.41 7.15 5.21

5 years 4.77 4.73 4.36 5.34 6.63 3.45 3.82 4.67 7.39 5.40

Non Resident Ordinary (NRO) deposit interest rates (%) (w.e.f. 31/08/2013 (% p.a.))

Deposit below Rs.1 Crore Deposit of Rs.1 Crore and above

7 days to 60 days 6.50 9.00

61 days to 1 year 6.50 8.25

1 year to 10 years 8.75 8.75


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For more details scan the QR Code

below;

RESIDENT FOREIGN CURRENCY A/C. (RFC)(%P.A.)

w.e.f 01/09/2013

PERIOD USD GBP EURO

1 year and above but less than 2 years 2.67 2.87 2.48

2 years and above but less than 3 years 2.57 2.84 2.64

3 years only 3.95 4.13 3.87

Note : - Minimum Amount USD 1000 or equivalent for RFC deposits

All these interest rates are subject to change, without notice .The revised interest rates are applicable only on fresh deposits and renewal of maturing deposits.

*Subject to change. Visit our websitewww.onlinesbi.com/nri for latest interest rates.

NRI Housing loan interest rates

Assumed Housing Loan Amount Rs. 30 Lacs

Period

EMI at the otherBank (AssumedInterest rate

10.75%)

EMI at SBI(Interest rate9.95%)

Savingsper

month

Savings due toreduction in EMIover total tenure

Interest income onaccount of deposit of thedifference in EMI as RD

Total Gain onaccount of

switchover to

SBI Home Loan

25 yrs 28,863 27,155 1,708 5,12,400 12,45,469 17,57,869

20 yrs 30,457 28,851 1,606 3,85,440 6,21,053 10,06,493

15 yrs 33,629 32,146 1,483 2,66,940 2,70,497 5,37,437

Interested send an email to us. We will be reaching you.

For New NRI Car Loans

0.75% above B.R. i.e 10.45% p.a. (for all periods)

EMI per lakh = Rs.1683/- only, for a 7 year loan.

(Base Rate, B.R 9.70%)

Loan Amount

Linkage with Base Rate overthe tenure of the loan(Current B.R9.70%) Effective rate

EMI per lac(For 30 yr loan)

UptoRs 30 lacs 0.25% above Base Rate 9.95% Rs.874/-

Above Rs 30 lacs 0.40% above Base Rate 10.10% Rs.885/-

S I nri Car Loans

Savings Bank deposit

interest rate (NRO &

NRE)4.00%
http://www.onlinesbi.com/nrihttp://www.onlinesbi.com/nri


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NRI Palakkad Branch

Dear Sir/Madam,Palakkad is the gateway to Gods own country Kerala, situated at the foot hills of the western ghats, and State Bank of India the banker to every Indian is proud and privileged to have its NRI branch in this district

with excellent ambience, state of the art facilities and adequate car parking facilities.

NRI branch Palakkad is functioning at Robinson Road, Palakkad since November '2010 and is catering to allthe needs of NRIs as a financial supermarket, right from extending loans, locker facilities, Foreign Currencydeposits and to investments related advises in mutual funds, Sbi Life Insurances etc.

The branch is also provided with a dedicated Relationship Manager(NRI Services) extending personalizedservices to our valuable NRI clients, and the experienced staffs who are exclusively hand picked for this

branch believes in building relationships and ensures a very pleasant banking experience of international

standards to one and all.

Our contact details : email:[email protected] Branch Palakkad, Opp to Robinson Memorial Church, Robinson road, Palakkad-678014.

Relationship Manager (NRI): Ms. Sandhya Devi P M, Mob: +91-9497718955, +91-491-2501242

Ramesh Kumar. N

Branch Manager

Mob: 9447588511

NRIPalakkad Branch
mailto:[email protected]:[email protected]


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In the coming issues . . .

Investment Services Health tips Cross words NRI Quiz

Your Feedback is important to usWe cordially invite your suggestions and views to improve our products andquality of services. Please write toShri. GeorgeJohnNRI Nodal Officer, [email protected] . Please also visit exclusive portal of our Bank for NRIs atwww.onlinesbi.com/nrifor more information on our products and services.

Disclaimer:

This Newsletter has been brought out with the sole intention of disseminatinguseful information to NRIs and does not purport to be a legal document or asolicitation. In case of any variation between what has been stated herein andthe relevant Acts, Rules & Regulations, Policy Statement, Banksinstructions. etc, the latter shall prevail.

,
mailto:[email protected]://www.onlinesbi.com/nrihttp://www.onlinesbi.com/nrimailto:[email protected]

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Nrk Sandesh Sep 2013