NRI Investment in India and R2I Financial Concerns

[SwamyG]

Yeah, if the match is good. Even after the 10% default plus deferred taxes, it is free money. No denying that.

[Muppalla]

I used to be like that. However, my previous company pays all the bonus as 401K. I got like 12% per annum for six years even if do not add even a penny. I haven't lost in the bloodbaths because I moved them to stable and gauranteed funds during the rakthpaath.

[sampat]

Is there a way to transfer around 10-20 lakh Rupees to Europe? Does anyone know the expense and process involved? This is personal money received as a gift in India.

For others in similar situation.
converting my saving to NRI/NRO account was too much hassle. So we simply did the outward remittance (wire transfer) from our saving account. It was quite cheap and fast process. Cost was around 50 Euros and money was received in 2 days.

[Vipul]

With the proposed move by GOI to impose Wealth Tax of 1% every year on all assets (inlcuding bank deposits) in overseas countries, all Green Card holders who were holding on to their Indian pasports for senti(mental) reasons will have an increased cost to do so.The GOI is desperate and wants more resources to indulge in vote buying and wasteful schemes in the future.

[Neshant]

Yeah, if the match is good. Even after the 10% default plus deferred taxes,

the question is what are the taxes going to be when it comes time to withdraw.

also what will be clawed back iin pensions if they see you have saved money in a 401K. The govt then might well decide you have enough to take care of yourself and someone who blew all their money on vacations, a nice home, joy riding is more deserving of a govt pension.

the whole idea of getting you to put money in plain sight of government is suspicious to me. Certainly the financial & banking class are lobbying for it because they can get a cut of the fees to "manage" your wealth.

[Tanaji]

With the proposed move by GOI to impose Wealth Tax of 1% every year on all assets (inlcuding bank deposits) in overseas countries, all Green Card holders who were holding on to their Indian pasports for senti(mental) reasons will have an increased cost to do so.The GOI is desperate and wants more resources to indulge in vote buying and wasteful schemes in the future.

I am confused, how is this tax going to work? Doesnt India have dual taxation treaties with the likes of UK, US, EU etc? So if income on such deposits is already taxed, how can GoI tax it again? Moreover, how is income earned abroad taxable in India?

I think UK/US does it similarly just trying to understand the rationale behind it...

[brihaspati]

With the proposed move by GOI to impose Wealth Tax of 1% every year on all assets (inlcuding bank deposits) in overseas countries, all Green Card holders who were holding on to their Indian pasports for senti(mental) reasons will have an increased cost to do so.The GOI is desperate and wants more resources to indulge in vote buying and wasteful schemes in the future.

I am confused, how is this tax going to work? Doesnt India have dual taxation treaties with the likes of UK, US, EU etc? So if income on such deposits is already taxed, how can GoI tax it again? Moreover, how is income earned abroad taxable in India?

I think UK/US does it similarly just trying to understand the rationale behind it...

Maybe anything that can be termed asset once you return - and no longer paying tax in the country of income. Dual taxation is not possible on the same asset.

[Neshant]

The only thing this silly tax is going to do is drive away NRI wealth & investments from India.

[Bade]

Maybe, the time is arriving when India will not have to care about NRI investments in the larger picture of things, and hence this proposal. Of course it will rub the NRIs the wrong way, but such is life. When of little use, to be abandoned at will.