NRI is any person holding Indian Passport but has immigrated to some other country for the duration of 6 months or more for residence, employment purpose, and vacation circumstances that indicate intention to stay out of India for an indefinite period.

Following people are also considered NRI:

  • If a person’s stay in India is less than 182 days during the preceding financial year, then also the person will be considered NRI.
  • Citizens of India who are working abroad with foreign government agencies like United Nations Organisation (UNO), affiliates, International Monetary Fund (IMF), World Bank etc. on assignment.
  • Officials of Central and State Government and Public Sector undertaking deputed abroad on temporary assignments or posted to their offices, including Indian diplomat missions, abroad.

Non-resident foreign citizens of Indian Origin are treated on par with non-resident Indian citizens.

Retirement Planning

Before discussing Retirement Planning one must have a clear understanding of what retirement is. Retirement is old age life when the person has become free from your personal & professional liability.

After spending your whole life to fulfil the needs of your family. It is the retirement age when you get time to fulfil your dreams and those things do require money. Therefore, it becomes crucial to be independent at that age also. There comes the need of retirement planning.

Thus, retirement planning is done by an individual to earn a regular income after retirement.

Highlights of budget for FY 2017-18

No Cash transaction over INR 3 Lac

As per Budget 2017-18 no cash transaction is permitted for more than INR 3 Lac. This has become a problem for sectors that deal in Cash. Ex Jewellery, Property where major payments are done in cash. If someone is caught making cash payment of more than INR 3 Lac then there is 100% penalty on it.

Income tax slab reduced

Income tax slab reduced from 10% to 5% for people earning between INR 2.5 Lac -5 Lac. This has become a reason for happiness among the salaried class earning up to INR 5 Lac.

10% Surcharge imposed-

Surcharge of 10% has been imposed on individuals earning between INR 50 Lac- 1 Crore. It’s an extra burden for individuals earning between INR 50 Lac- 1 Crore.

Long Term Capital Gain tenure reduced from 3 years to 2years-

Another sense of relief for people who love to invest in Land and buildings as the tenure of Long Term Capital Gain tenure has been reduced from 3 years to 2years. Hence w.e.f. FY 2017-2018 if the Land and building are sold after 2 years then it will come under Long-term Capital Gain. And the person will get the benefit of Indexation.

No change in Long-term Capital and short term Capital gain tax for Equity Investors-

The budget for FY 2017-18 has brought good news for Long-term Capital gainers as there is no change in Long term Capital gain tax for equity investors. This means they can enjoy the benefit from equity market after 1 year i.e. All gains will be considered tax-free.

Corporate tax for MSME companies below 50 Crore turnover is reduced to 25%-

The tax slab has been reduced to 25% for Corporate whose turnover is less than INR 50 Crores. Thus, this would benefit 96% of MSME along with the startups.

Cash Donation limit to political parties reduced-

Earlier we could make a cash donation to political parties for INR 20000. But w.e.f. FY 2017-18 this limit has been reduced to INR 2000 only.

Aadhaar pay is about to be launched soon-

This means that from now onwards shopping has become hassle free. As, you can do shopping with only a thumb impression.

No change in Service tax-

Another good news is the service tax has not been increased which was expected before the budget.

5% TDS on rent more than INR 50000–

W.E. F Budget FY 2017-18, 5% TDS has been imposed if the rent paid is more than INR 50000.