How do you update your PAN card with your new foreign address?

An NRI is an Indian who is now living abroad but use to live in India. Sometimes they have obtained there Pan card while living in India and use the Indian address. Now that they have moved abroad, there is a question about updating your foreign address. This also gives you a chance to update your NRI status. This also works for an Indian who used to live in India and is now a citizen of another country.

Although it is not required, sometimes it is advised to change your address within the PAN department’s database. When they do this, the address is not printed on your PAN card. There is no address mentioned on the card itself. They use the address in their database for any further correspondence in the future.

The process for changing your address is the same process for applying for the duplicate/replacement PAN card. You will be given that same form. When you update your address, you have to fill up a duplicate PANcard application and the PAN department will update your address as well as send you out a duplicate PAN card. This will be their most recently updated card. You can replace your old PAN card with this new one when you receive it if you wish to.

When updating your address, you will have to provide all of the documents that you provided when applying for a new PAN card the first time. This includes two passport size photos, ID proof, an address proof and a copy of your PAN card. There are other ways of proving you have held a PAN card if you cannot get a copy. There is a place on the internet where you can print off everything you need. You will need to send these documents along with your duplicate or correction PAN card application to India. The government has mentioned their address online. You can send it directly to the government office or, for your convenience; you might want to apply through a broker online. An example of an online Pan Card broker would be www.pancard.co.uk. It generally takes about 3 to 5 business days for your address to be updated with the IT department. They have a tracking system online where you can keep track of everything. Once your application is submitted, then it usually will take around 10 more business days to receive your new PAN card in the mail. The government sends your PAN card via India speed post when you are living in another country.

If you are living in the US, you will find this process a little bit easier because you are allowed to use the address page in your passport as an address proof document. This takes a lot of waiting time away because you do not have to search for an accepted document such as a bank statement or any other document that must be apostilled by the Secretary of State first.

How to open a forex trading account in India?

Forex trading is an exciting venture but one should not take it lightly. May be it’s the easiest legal way to become rich quickly if you can manage your risks. To start forex trading you need to have a forex account through which you can hold and trade foreign currencies.

Opening a forex trading account may seem like a hassle, but it has the least complicated steps and is almost like opening a bank account. If an individual has all the required documents and minimum deposit, one can easily open the account.

The first step towards opening a forex account is to find a forex broker. A forex broker is an intermediate between the individual and the open market that handles funds and trades and provides the forex trading platform. After finding a broker, one can open a demo account before opening typical forex trading account to get to know how to use the account.

You need to establish your identity with your forex broker so they can prove that they know who they have trading with them.

In normal circumstances you just have to fill a set of questionnaire disclosing some of your personal and financial details for regulatory matters. Some of the questions asked in the questionnaire include:

Name

·     Address

·     Email

·     Phone Number

·     Account Currency Type

·     Employment Status

·     Annual Income

·     Net Worth

·     Trading Experience

·     Trading Objectives

·     A password for your trading account

·     Date of Birth

·     Country of Citizenship

·     Social Security Number or Tax ID

As forex trading becomes more regulated, these forms are likely to get longer and require more information.

After providing all the required information you would come across a disclosure that reminds you about your risks involved in trading. The last step includes the verification of address and identity.

Once the information is verified, one can fund the account and begin trading.

Income tax rules for NRIs in India

Handling finances has never been easy and doing it in two countries can sometimes be baffling for NRIs. Here we are to help you understand the how to tackle the different taxation rules and regulations in India. Many a times NRIs find themselves in a fix while filling taxes as the rules for NRIs are different from those that are valid for residents. Here we are having a look, why and in what circumstances an NRI has to file taxes in India.

Rules to file or not to file returns

When an NRI earns income outside India, he/she is not liable to pay taxes in India. You don't have to pay tax on the interest income in a non-resident external account (NRE) or foreign currency non-resident account.(FCNR). Infact you don't have to file income tax return if you don't have any taxable income in India.

However if your taxable income in India during the financial year is above the basic exemption limit of Rs 1.8 lakh you need to file the income tax returns legally.

Circumstances when NRIs are liable to file income tax returns are the following:

·     Trading Income

·     Property/Plot/House Income

·     Salary earned in India for services in overseas

·     Income from any family assets

·     In the form of Interest rates paid by NRI to government, bank

·     Fees under industrial duty

·     Extra Bonus paid by Indian company

However NRI's can save taxes by investing in pension plans, LIC and tax saving mutual funds upto certain limits.

Ways for NRIs to file taxes in India

There are basically three ways to file income tax returns in India. Either you can do-it-yourself online or through assisted services or through the traditional route of a chartered accountant.

Some of the important and practical aspects which should be handled carefully while filing returns include:

Mandatory e-filing

According to the latest notification of the Central Board of Direct Taxes (CBDT) in India, it is mandatory to file your returns electronically if you have annual gross total income (that is, income before any Chapter VI deductions like Sec 80C etc) in excess of Rs 10 lakh.

Interest liability

NRIs should know if they are liable to pay advance tax and if yes it should be paid in time. If not, they would need to calculate the interest for default and deposit the same before filing the tax return. If an individual delays filling returns or pays less advance tax, there are interest implications. The interest is generally 1 percent per month for the default amount and extends till the date of payment.