Sbi trading account closure form


Will I-Sec send related communications to the joint holders for investment held with them jointly? Incase of an unfortunate event of demise of any of the Joint Holders, what formalities have to be completed by the surviving Joint Holders? A Mutual Fund is a body corporate that pools the savings of a number of investors and invests the same in a variety of different financial instruments, or securities.

The income earned through these investments and the capital appreciation realised by the scheme are shared by its unit holders in proportion to the number of units owned by them. Mutual funds can thus be considered as financial intermediaries in the investment business who collect funds from the public and invest on behalf of the investors.

The losses and gains accrue to the investors only. The Investment objectives outlined by a Mutual Fund in its prospectus are binding on the Mutual Fund scheme. The investment objectives specify the class of securities a Mutual Fund can invest in.

Mutual Funds invest in various asset classes like equity, bonds, debentures, commercial paper and government securities. An Asset Management Company AMC is a highly regulated organisation that pools money from investors and invests the same in a portfolio. They charge a small management fee, which is normally 1. NAV or Net Asset Value of the fund is the cumulative market value of the assets of the fund net of its liabilities.

NAV per unit is simply the net value of assets divided by the number of units outstanding. Buying and selling into funds is done on the basis of NAV-related prices. NAV is calculated as follows: The NAV of a scheme has to be declared at least once a week. However, NAV of a close-ended scheme targeted to a specific segment or any monthly income scheme which are not mandatorily required to be listed on a stock exchange may be published at monthly or quarterly intervals.

Qualified and experienced professionals manage Mutual Funds. Generally, investors, by themselves, may have reasonable capability, but to assess a financial instrument a professional analytical approach is required in addition to access to research and information and time and methodology to make sound investment decisions and keep monitoring them.

Since Mutual Funds make investments in a number of stocks, the resultant diversification reduces risk. They provide the small investors with an opportunity to invest in a larger basket of securities. The investor is spared the time and effort of tracking investments, collecting income, etc. It is possible to invest in small amounts as and when the investor has surplus funds to invest.

Mutual Funds do not provide assured returns. Their returns are linked to their performance. They invest in shares, debentures and deposits. All these investments involve an element of risk. Besides this, the government may come up with new regulation which may affect a particular industry or class of industries. All these factors influence the performance of Mutual Funds. They carry the principal objective of capital appreciation of the investment over the medium to long-term.

The returns in such funds are volatile since they are directly linked to the stock markets. They are best suited for investors who are seeking capital appreciation. There are different types of equity funds such as Diversified funds, Sector specific funds and Index based funds. Diversified funds These funds invest in companies spread across sectors. These funds are generally meant for risk-taking investors who are not bullish about any particular sector.

Sector funds These funds invest primarily in equity shares of companies in a particular business sector or industry. These funds are targeted at investors who are extremely bullish about a particular sector. The value of the index fund varies in proportion to the benchmark index.

They are best suited for investors seeking tax concessions. They are best suited for the medium to long-term investors who are averse to risk and seek capital preservation. They provide regular income and safety to the investor.

The period of investment could be as short as a day. They provide easy liquidity. They have emerged as an alternative for savings and short-term fixed deposit accounts with comparatively higher returns. These funds are ideal for Corporates, institutional investors and business houses who invest their funds for very short periods.

Since they are Government backed bonds they give a secured return and also ensure safety of the principal amount. They are best suited for the medium to long-term investors who are averse to risk. Balanced Funds These funds invest both in equity shares and fixed-income-bearing instruments debt in some proportion. They provide a steady return and reduce the volatility of the fund while providing some upside for capital appreciation. They are ideal for medium- to long-term investors willing to take moderate risks.

Hedge Funds These funds adopt highly speculative trading strategies. They hedge risks in order to increase the value of the portfolio. Generally they are open for subscription and redemption throughout the year.

Their prices are linked to the daily net asset value NAV. From the investors' perspective, they are much more liquid than closed-ended funds. Investors are permitted to join or withdraw from the fund after an initial lock-in period.

These funds have a fixed date of redemption. One of the characteristics of the close-ended schemes is that they are generally traded at a discount to NAV; but the discount narrows as maturity nears. These funds are open for subscription only once and can be redeemed only on the fixed date of redemption. The units of these funds are listed with certain exceptions , are tradable and the subscribers to the fund would be able to exit from the fund at any time through the secondary market.

Interval funds These funds combine the features of both open-ended and close-ended funds wherein the fund is close-ended for the first couple of years and open-ended thereafter.

Some funds allow fresh subscriptions and redemption at fixed times every year say every six months in order to reduce the administrative aspects of daily entry or exit, yet providing reasonable liquidity. Offshore Funds These funds facilitate cross border fund flow. They invest in securities of foreign companies.

They attract foreign capital for investment. Is there is any tax applicable on the redemption of mutual funds? The tax applicable is called as STT i.

Security transaction tax which is 0. STT is applicable only in case of redemption of equity linked schemes. Growth Plan and Dividend Plan A growth plan is a plan under a scheme wherein the returns from investments are reinvested and very few income distributions, if any, are made.

The investor thus only realises capital appreciation on the investment. This plan appeals to investors in the high income bracket. Under the dividend plan, income is distributed from time to time. This plan is ideal to those investors requiring regular income. Dividend Reinvestment Plan Dividend plans of schemes carry an additional option for reinvestment of income distribution. This is referred to as the dividend reinvestment plan. Under this plan, dividends declared by a fund are reinvested on behalf of the investor, thus increasing the number of units held by the investors.

AIP allows the investors to plan their savings through a structured regular monthly savings program. Redemption price is the price received on selling units of open-ended scheme. If the fund does not levy an exit load, the redemption price will be same as the NAV. The redemption price will be lower than the NAV in case the fund levies an exit load. Repurchase price is the price at which a close-ended scheme repurchases its units. Repurchase can either be at NAV or can have an exit load.

Some Mutual Funds provide the investor with an option to shift his investment from one scheme to another within that fund. For this option the fund may levy a switching fee. Switching allows the Investor to alter the allocation of their investment among the schemes in order to meet their changed investment needs, risk profiles or changing circumstances during their lifetime.

Further, the Shut-Out period will also help in expeditious processing and despatch of dividend warrants. The Shut-Out period applies to new investors in the Scheme as well as to Unitholders making additional purchases of Units into an existing folio. The Trustee reserves the right to change the Shut-Out period and prescribe new Shut- Out period, from time to time.

There is no lock-in period in the case of open-ended funds. However in the case of tax saving funds a minimum lock-in period is applicable.

The lock-in period for different tax saving schemes are as follows: Unit Trust of India was the first mutual fund which began operations in The performances of Mutual funds are influenced by the performance of the stock market as well as the economy as a whole.

Equity Funds are influenced to a large extent by the stock market. The stock market in turn is influenced by the performance of the companies as well as the economy as a whole. The performance of the sector funds depends to a large extent on the companies within that sector. Bond-funds are influenced by interest rates and credit quality. As interest rates rise, bond prices fall, and vice versa. Similarly, bond funds with higher credit ratings are less influenced by changes in the economy.

Choice of any scheme would depend to a large extent on the investor preferences. For an investor willing to undertake risks, equity funds would be the most suitable as they offer the maximum returns. Debt funds are suited for those investors who prefer regular income and safety. Gilt funds are best suited for the medium to long-term investors who are averse to risk. Balanced funds are ideal for medium- to long-term investors willing to take moderate risks.

Liquid funds are ideal for Corporates, institutional investors and business houses who invest their funds for very short periods. Tax Saving Funds are ideal for those investors who want to avail tax benefits.

An important aspect while selecting a particular scheme is the duration of the investment. Depending on your time horizon you can select a particular scheme. Besides all this, factors like promoter's image, objective of the fund and returns given by the funds on different schemes should also be taken into account while selecting a particular scheme. Receive Unit certificates or statements of accounts confirming your title within 6 weeks from the date your request for a unit certificate is received by the Mutual Fund.

Receive information about the investment policies, investment objectives, financial position and general affairs of the scheme; 3. Receive dividend within 42 days of their declaration and receive the redemption or repurchase proceeds within 10 days from the date of redemption or repurchase 4. The trustees shall be bound to make such disclosures to the unit holders as are essential in order to keep them informed about any information which may have an adverse bearing on their investments.

An investor can send complaints to SEBI, who will take up the matter with the concerned Mutual Funds and follow up with them till they are resolved. However a fund's performance should be evaluated on the basis of a comparison with the relevant indices and alternative instruments.

The NAV varies from fund to fund. Therefore this argument is not entirely true. The order book reflects details of all the orders placed by you. Prior to the implementation of the SEBI guideline, an entry load of 2.

As per the new guidelines issued by SEBI, with effect from August 1, , entry load will not be charged on purchases in existing mutual fund schemes or on schemes launched thereafter.

However, any investment made by you in an NFO which was launched prior to August 1, will continue to attract entry load and other charges as specified in the offer document. Exit Load varies for different schemes and is generally charged as a percentage of NAV. The Exit load normally varies between 0. Some mutual funds however do not charge any exit load. Such mutual funds are referred to as 'No Load Funds'.

SEBI Guidelines stipulate that with effect from August 1, ,there shall be no entry load for any Mutual Fund scheme whether existing or new. SEBI Guidelines further stipulate that investors will be required to pay upfront commission directly to distributors. This means that earlier if you invested Rs. However, while you will not be charged any entry load, you will have to pay 'Transaction charges' directly to your distributor as per the applicable fee structure.

Click here for more information on the I-Sec Fee structure. Effective Purchase Price is the sum of the NAV, transaction charges and service charges divided by the number of units purchased. Let's say you purchased 1, MF units for Rs. If the transaction and service charges applicable are Rs.

It is the price which you actually pay to purchase a single unit of a Mutual Fund Scheme. Entry load has been abolished only with effect from August 1, Any investment made by you in an NFO which was launched prior to August 1, will continue to attract Entry Load and other charges as specified in the offer document.

Yes, just as in the secondary market, you will need to allocate funds for the purpose of investing in Mutual Funds. Under the Modify Allocation option you would have a separate section for allocating money for Mutual Funds. Also the funds which are allocated for investments in Mutual Fund will not be allowed for transactions in the secondary market.

Yes, while placing any mutual fund order, modify or cancel option would be available to you till the final confirmation of the order is placed by you. Once you click on Final Confirmation you cannot modify or cancel the order placed by you. As soon as you confirm your order you can view the details of your transaction in the order book.

Also an email will be sent to your email address. Yes, you can transact at any time of the day. However, in order to get the applicable NAV for the current day you would have to transact before the cut-off time of the scheme. If you place any order after the said cut-off time, you would be eligible for applicable NAV of the next day.

As per SEBI guidelines the cutoff time for accepting orders in Non-liquid funds is hrs and in Liquid funds it is hrs. In order to get the applicable NAV for the same day, you can purchase up to the cut-off time of the scheme, after which you will get the next day's applicable NAV.

If the next day is a holiday, then the applicable NAV of the next working day. As decided by the fund, there is a minimum transaction amount indicated against each scheme. You will get to see the minimum transaction amount in the Place Order screen. In order to invest in Mutual Fund, you will need to separately allocate funds for the same. This option is available to you in the Modify Allocation screen.

After your first purchase you will not be permitted to transact for a period of 4 to 7 days depending on the processing time of the Mutual Funds' Registrar. After you place an investment order in any Mutual Fund for the first time a Folio Number is generated for that particular fund. Until the Folio number is generated you will not be allowed to place any further orders for that particular Mutual Fund.

After the Folio Number is generated you can place any number of order in any schemes of the Mutual Fund. Hence the processing time would be for each scheme of the Mutual Fund. Suppose if you place an order for a Liquid Fund, then a folio number is generated for that scheme only and to place an order for the first time in a balanced fund you will have again wait till a new folio number is generated. You can contact any ICICI Centre to open accounts or fill in the application form on the web site and our Customer Service Executive will visit you for opening your e-invest account.

Once the processing of your form is completed, you can start investing in Mutual Funds online. You can transfer in your existing mutual fund units to your ICICIdirect account by filling a Transfer-in request form which is available on the site. However this facility of Transfer-in can be availed only if you're a sole holder in the physical units else your request cannot be processed.

Fill in the existing folio number alloted for that scheme. In case of transfer-in of dividend schemes, the dividend re-investment option will by default be activated and will appear as "Y". In case the dividend re-investment option as per your records is dividend pay-out "N", to change the dividend re-investment option you can use the modify dividend re-investment hyperlink. The units are converted to electronic form within 30 days. You can check the status of your request the TI Book link.

Once the units are converted into electronic form, the same will be updated in the Unit Holdings link. This will take you to all the schemes of the fund. The details of the scheme are indicated against each scheme. You can also select the option for dividend reinvestment through the purchase order screen. In case you are an NRI, first you need to decide is whether you want repatriation benefit or not.

No, you cannot purchase mutual fund units in the PINS account. You can only do so in the Non-Pins account. The details of your transactions will be immediately updated in your order book.

This will display all the scheme units held by you, with details against each scheme. You can either redeem a certain amount or specify the number of units held by you.

There is a minimum transaction amount that is indicated against each scheme. A cut off time is also displayed to get that day's NAV. TDS is not deducted on the sale proceeds for Resident Indians.

You will find the complete details of the redemption including the TDS deducted. Click on the scheme you wish to Switch From. There is a minimum transaction amount indicated against the scheme. Also the scheme you wish to "Switch To" carries a minimum transaction amount.

Therefore the amount which you will be switching will be higher of the two. The details of your transactions will be immediately updated in your order book, an email will be sent showing the "Switch From" and "Switch To" units. Since this does not involve any transfer of funds, your bank account will not be affected. Switch Out is treated as redemption. The gross amount after deducting the TDS will be used for switch in Transaction i. Select the fund name and the scheme. A screen will appear with the details of that scheme similar to that in the Purchase screen.

In addition to these details you will have to fill up the frequency with which the investments will be made and the start date. From the date specified a fixed amount will be debited to your bank account. You can however enter into only one plan per scheme. In case you do not have sufficient funds in your account in any specific month, the SIP would be rejected for that particular month. Select the option for "Systematic Withdrawal Plan".

A screen will appear with the details of that scheme similar to that in the Redemption screen. In addition to these details you will have to fill up the frequency with which the withdrawals will be made and the start date. From the date specified a fixed amount will be credited to your bank account.

You will also receive an e-mail indicating that the plan has been scrapped. Yes, You can place your request even on a holiday. However, the request would be processed on the next business day and respective NAV would be applicable as per the Mutual Fund's offer document. All the co-holders should sign this letter. Please ensure that the requested details should be updated in KRA before submitting this request.

Please send the filled in form at the below address:. The Turn Around Time TAT for change in details is 15 working days from the date of receipt of documents at the corporate office. ICICI Securities Ltd I-Sec will process the request on best effort basis within a reasonable time and I-Sec cannot be held responsible for any loss of documents or delay in processing of the request.

For placing online request visit www. C Ind Area, M. Nomination details of your linked bank or demat account are not considered for your online mutual fund purchases. Hence, you would be required to make a separate nomination request for your mutual fund folios. You can cancel your existing nomination at any time before you redeem your mutual fund units. If your legal heir is different from your nominee, your legal heir cannot dispute this action as transfer by the respective AMC s in favour of a Nominee acts as valid discharge by the AMC s against the legal heir of the deceased holder.

Investors in the Category of "Individuals" are permitted to make a nomination for their mutual fund units. Non-individuals including society, trust, body corporate, partnership firm, Karta of Hindu Undivided Family and a holder of Power of Attorney are not allowed to nominate. You can nominate any individual as your nominee. However, you cannot nominate the following as your nominee with regard to your mutual fund units:.

A non-resident Indian can be a nominee subject to the exchange controls in force, from time to time. You are permitted to nominate a minor. However, if you nominate a minor, do provide the name and address of the minor's guardian in the nomination request.

You can nominate only one person while placing purchase order in new Folio. However you may later give physical request letter for adding nominee. Maximum 3 nominees can be updated in a single folio.

Once the nominee is updated in AMC records, it shall reflect in your mutual fund unit holdings page on the next working day based the report provided by the Mutual Fund Registrar. In case your request is rejected, the reason s for such rejection will also be updated. As you have moved to India, you are not allowed to have NRE account. Also, the interest on NRE account becomes taxable from the date on return to India i. I came some queries with regards to my tax residency status.

Based on the above data, can you please establish my tax residency status for USA and India. Since I was only for 2. Would it would classify me as a non-resident status for tax purposes? Can I be a non-resident at both the locations as per the above data points? For , tax year, as you have stayed outside India for days, you would be an NRI. This is a delicate situation for next 1. From January, you would be a resident of USA.

Only if you are an Ordinary Resident under Income tax, you are required to include all your foreign income and assets in your Indian tax return. I am a account holder in Axis. I just want to know is there any facility to self certify online or we only have to download , fill and send the form? Please contact Axis bank or the relationship manager and he will guide you. While bank may have an online system, others may not. We file returns in both countries declaring all our global income even before FATCA was put in place.

For tax purposes, holding OCI card means we are Indian residential status and citizens right? Am I understanding this right? IRS will match the numbers with the that you have filed and as both of them will match, you would be okay. I have a few questions. Does one have to declare foreign assets outside India every year?

Foreign assets need to be declared every year as the assets as on year end March 31 is declared. A resident also needs to include the income from the foreign assets as well. The return can not be revised if filed after due date. Also the return can only be revised if there is change in income. You may not be able to revise the return just to add foreign assets. You have to change the income even Rs. We dont have any foreign income eventough we have 2 submit fatca self declaration.

Can we send the self declaration by courier to the mentioned address. Yes, you can send the self declaration by courier. However, please confirm with the organization that sent your the form. I received mail to submit my self declaration form with in 7 days from the time I receive the mail.

How should I submit my self declaration form. Do I need to mention anything specific about funds. You are an Indian Resident for tax purpose. Money received for Church activity is not related to your income assuming nothing kept but that of the Church activity so I would assume that Church would be reporting these information under Foreign Contribution. Dear Sir, Thanks for the informative blog. My wife is an Indian citizen and has relinquished her Green Card.

On the form there is a question I am having trouble with: Country of Tax Residency. There is no field for citizenship, etc. Can you kindly expand on this? Thanks in advance, Sincerely, Neel. If you have paid tax in India, you would get credit but you may still be required to file tax returns and forms. As per recent Income Tax notification, if the relevant information is not provided by 30th April , else your account will get blocked and no further transactions shall be allowed.

I am an Indian resident and I was working in India only. So do I need to reply to this message? You may reply with the information that you are an Indian resident and are not resident of any country other than India. You would also give the information as requested. However, I would not give the info via sms but would file a form officially with the mutual fund company or update records electronically on the CAMS website.

I have a savings account with approx. I would be obliged if you help me how to fill the form. I would like to know what I should write in the column for Citizenship and also in the column for Residence for Tax Purposes.

I would appreciate your assistance. As you live in UK, your resident country is also UK. Please also check whether you are also considered a citizen or resident of Fiji due to birth. I have submitted the same for my Mutual Fund investments. Also, this is not for your foreign accounts or assets but is to find out if you are a tax resident of any foreign country. If you are not, then made the declaration accordingly.

Since I pay my taxes in India and I have moved my residence here. I do not have any other source of income except for my job in Mumbai and I have never paid my taxes in Italy because I never worked there. In February , I started a life insurance with Kotak. They issued the policy with WRONG nationality in spite of the fact that I addressed the mistake at the time the proposal was sent. So, the policy states that I am Indian but I have always been Italian! Why should I declare something which is not correct, if I am a resident in Mumbai since ?

Do they have the right to ask me to fill a form that does not relate to me? Thank you very much and regards. You would just tell them that. I am sure they will understand as there are many foreign nationals living in India. I hold an overseas bank account with me which hardly has any assets now. If I am moving to UK again do I need to close all my resident accounts in India immediately or after 6 months?

So, you will be required to complete the form. However, as you are an Indian resident and can not be termed as resident of UK, you would declare as such.

NO need to worry. If you are moving to UK, you would inform the bank and mutual funds of the change of status either from resident to NRI or on becoming UK resident. Number of month would depend on the purpose of leaving India and residential status rules of India as well as UK. However, I would think after months would be okay.

The data will be shared as agreed i. USA — from July and other countries form January However, the actual sharing will happen form end Two years given to setup system and gather data. I surrendered both policies after 5 years of premium payments.

Like many ignorant NRIs, I have not reported these in my US taxes though I was up to speed on my bank account reporting requirements so all my bank accounts are being reported every year from In dollar terms, the gain is not much if I factor in the premium payment each year at then exchange rates. However, I suggest you to contact your CPA. I have been living in Australia for last 6 months and almost 2 years before I had invested in equity which I am still holding.

Though I have sold some shares, but I have not done any new purchases of any shares. You can do all formalities in Australia and no physical presence is required. You may have to go to the Indian Embassy but not required to visit India. Please complete the form as soon as possible as it is now a requirement. Please also note that your assets and accounts will be shared with the Australian tax department.

Patel — I was looking for some guidance and after going through your blog, I feel certain that you are very qualified and would provide an apt suggestion to my query listed below. Are they specifically looking for accounts from July — to August ? I hold an Indian passport. I was residing in Macau there working for a large Hotel Organization.

Our taxes were deducted directly before we received a salary. The US govt doesnot pay my taxes and provide no benefit other than the money wired every month. So — my question to you is — — As an Indian passport holder located in Macau am I eligible to pay tax for this additional income?

Is this a punishable offence? Also note that I had provided my, PAN, passport copy, a copy of the visa, a copy of the contract with the hotel in Macau when I opened the account. Thank you for your prompt guidance.

As you are an NRI, any income outside India is not taxable so no need to pay tax in India assuming income is received outside India. If the American company is paying directly to your NRE account, it is a grey area. I would recommend opening a bank account outside India and then remit the funds to India to save any complications. However, as you were a Macau resident, if such income is taxable in Macau, you would pay tax as per laws of China.

If no tax is paid, it may be tax evasion or black money or anything else. If the US company deducts tax before making payment to you, it may be okay.

Else, it may be considered as tax evasion. Hello Sir, From Oct to till date i am working in Indonesia. Last year i tried lot of times to open NRI account in sbi but as my working visa was not valid due to date was finished i cannot open. I got new working visa processing form, i showed that then also i was unable to open nri account. Now for my parents and wife salary gets credit in normal joint saving account every month.

My company is paying tax amount in indonesia. I have tax receipt and tax card also. I have 2 account in india: Salary do credit here every month. It may be considered as a black money or the income that has escaped assessment. I had few questions but I read through everyones questions above and your detailed answers for each questions. I got my answers from them.

I just wanted to thank you first for this useful blog article. Also Is there a threshold of a certain amount post which I have to declare or do I have to declare it anywhich ways? Also I hold a LIC and a few mutual funds back in india?

How do I handle those? The requirement, compliance and threshold is different for different countries. Unfortunately, we may not be as well informed about Canadian requirement. I was looking for some guidance and after going through your blog, I feel certain that you have very qualified and would provide an apt suggestion to my query listed below.

I was residing in Macau then working for a large Hotel Organization. Now I am relocating to Philippines with another company and will continue to hold the 'virtual assistant' job. The address would be in the form. I found your website looking for information regarding CRS. Reading your site — I feel that you can help me. I have a tax number and I am a taxpayer in Thailand. The interest I earn here is Tax free in India since 7 years.

I have to inform them that Thailand is my resident country and not The Netherlands. I do not have any income of any sort or assets in The Netherlands.

I still hold a Dutch passport. I am still obliged to fill out the tax return in The Netherlands. Which is showing no income since It is okay to have a residence in more than 1 country.

You first need to decide whether you are also considered as a resident of Netherlands for tax purposes. If yes, include both Thailand and Netherlands as your countries of residence. If no, include only Thailand. Based on your declaration, your information will be updated in the system and reported to the respective or both countries. The bank would rely on your declaration.

There is no need to worry. If Yes, what will be Country of tax residence as per section 6 of the Income-tax Act, out of these 3 below a Any other country b India and any other country c Only India Please help me to clarify on above queries. So, you are only a resident of USA a Any other country.

Some years ago I lived in the US as an Indian citizen on a work visa and had made investments in the US from my salary income there. When I returned to India, I did not liquidate these investments and I continue to hold them. My investments are now in i money held in a savings account in a US bank, and ii a retirement account which was funded directly through my company similar to the provident fund system in India.

I am liable to pay some amount of tax in the US on the income earned from these investments, which I do so every year. Additionally, are these investments being automatically reported to the Indian tax authorities through CRS?

As you are an Ordinary Resident, you need to declare your foreign assets in your tax return including your bank accounts, k or any other account. You also need to declare all your US income in your Indian tax return. Please note that while certain income is not taxable in USA k dividend , it may be taxable in India.

FYI, I am reporting my k balance and income in my Indian tax return as foreign assets and income respectively. I do not pay any tax in UAE since this is a tax exempt country. The letter is addressed to my spouse and no account number is mentioned on the letter. I have join NRE ac and also ordinary account with sbi. The transactions are very basic in both accounts and less than 1 lakh rupees in ordinary ac and less than 10k in nre ac.

My question is - what should I write as I have no PAN nr for my spouse as she is not working and never filed tax in india. Should I provide details of this account in CRS? CRS does not ask for any foreign bank account but only the information of its account holders to verify that the money in one account is declared income and after-tax money. You would need to contact your bank and follow its procedures for converting your bank account.

In your case, as you hold the account as NRO or NRE, it is obvious that your resident country is different from India, you are getting the letter sooner. Hello sir, I am RD Patel. I am really appreciated by seeing your good advice and your support.

Needs your advice before 20th FEB. If you are only an India resident, you would mention the same in the form. Just provide the information about your self as required in the form — occupation, income, political affiliation, etc. I have been living here since my childhood and now work here since the last 25 years. Kuwait does no impose taxes on anything. Do I write Kuwait or India? Bank statements in India, most of them dont give account opening date, and during closure there is nothing explicitly saying that account is closed, and bank officials are not very helpful in giving any such letter.

It is a real pain. Some banks clearly state that they cannot give statements more than 4 years old. And you have to follow up again and again to the extent that it feels like begging. What do we do here? In case IRS raises any questions or seeks explanations, the above will become a huge pain factor.

Please contact the bank. Raise the issue to higher authorities and tell them that it is a compliance issue. I am Prathap, residing in Germany. I have come here on a work visa and its been 7 months.

I would like to have your suggestion on this, 1. Is it required for me to submmit this. Is it bec I am traansferring money to my Indian acc to be used by my parents. I am paying my taxes here, so do I also need to pay the Tax in India. What are all the documents I need to attach along with this, if at all I need to submit this Annexure. As you are an NRI, your foreign income is not taxed in India. This is mainly for tax laws of your resident country i. If you are required to report your Indian Income in your Germany return, currently there is no mechanism for German Tax Dept to know how much you earned in India.

With exchange of information, your account and income information will be shared between both countries. Sir, I live in Kuwait for about 3 years. I have NRE accounts in India. I never did any trading through DMAT in last 4 years. I have few shares and 10 years Infra bonds which i bought while residing in India Also the resident account is idle. I am aware that I should not have both NRE and resident accounts together.

There is no Tax in Kuwait. Currently, RBI is not penalizing but is after increasing compliance with laws. I think you would be a resident of only Kuwait. She has CD deposits in oriental bank of commerce in India total amount 70 lacks 70, She is a house wife in US and filling joint tax return with my father. I guess they need her Social security number and also her basic information. So what kind of action is appropriate from our end. I really appreciate for your precious time and help thx!!!!

If not, the IRS will know as India will share the information. So, I would recommend that She voluntary disclose the non-compliance, pay tax, interest and penalty and get her investment sorted out. My company pays tax on my Nigeria income and I do not possess any record for it.

I remit money from my UK account to India based on my needs there, pls advise what is the way forward for me as my bank has asked to complete the Fatca CRS form and submit in 7 days as the deadline has expired on 31st Dec You need to first confirm if the income in India and UK is taxed in Nigeria.

All assets are held as shares in demat or Rs. In USA, brokerage accounts combine trading with demat. However, this is not true in India. In India, there is no balance is trading account. It is being used to raise invoice for purchase or balance on sale and is immediately paid or received.

That account was idel for me since last 2 years so, this year I closed those demat and trading account in August So, I told them that I had closed my account and there is no more relationship between me and your firm and I had never did any single transaction. So all accounts needs to be updated, even the closed ones. So, what they are doing as per the requirement and is right. Hello sir, I m jitu chauhan. I really nice to see good advice.

I all really appreciate your support. You may say that you are an Indian resident and not a resident of a country other than India and you are the Ultimate Beneficial Owner UBO of the account. I think the form would have a UBO declaration as well. If question, please contact your relationship manager. We all really appreciate your support. I think you would also need to give your SSN. Your father may give his passport and Indian address.

Our employer deducts it from Salary itself. Tax ID not applicable for Salaried Individuals here. Thanks for this article!! I have been residing in the USA for the last 8 years and am a permanent resident. Till date I have not declared my Indian assets.

I have mutual funds, property, gold sold 2 years ago. The total income made in the last 8 years from these would be less than Rs 3 lakhs. Most of this income is when I sold the gold and a small portion of this income is from dividends. The total value of shares is around Rs 30 lakhs. As per stamp papers the property is worth around RS 8 lakhs. And the gold was around 30 talks this is now sold. I have about 4 lakhs in my joint account which is the money I sent from US.

I plan to declare all this while filing my tax returns in US in a couple of months. Do I need to get in touch with IRS asap before they reach out to me? Yes, you may be. Both — Tax and interest on Income and penalty on assets immovable properties and gold not included.

However, you used cheque to buy gold so the balance in bank would be covered. However, you are encouraged to comply as soon as possible. Please contact your CPA. If i have income in US which is below threshold limit of US taxation or i have no income from US, what i need to select in tax resident in any other country other than india?

I am also assessed to indian income tax and filing my indian income tax return with status of Ordinarily resident in india. Whether you have taxable income or not does not matter. Nationality is the citizenship. Just look at the passport and you would know your nationality. My bank has sent me a mail asking me to submit CRS. It would depend whether you have returned permanently or temporarily.

Whether you have started a job or business in India or whether you plan to go out of India. If you have moved permanently, you may say you are now not a resident of any country other than India. However, you would need to check whether you are considered a resident of Netherlands based on its laws. I would request you to consult someone to understand the laws and requirements. I am a Private employee with Amazon and receive Salary as per company norms including Tax deductions. I have a SBI account and there are no Foreign transactions made.

May I have the detailed info on this as I need to submit it before 18th Dec and I do not know which form to look at. Helping me with the Form link or is it necessary for me as I do not have any Foreign account.

I would assume that you are an employee of Amazon India. If you are not a resident of any other country, you would declare as such and sign. You do not have anything to worry. I would recommend to complete the same. You would only include the relevant details regarding place of birth, nationality, occupation, income, political person etc. You may also have to provide a copy of your passport or any other document as required to the bank.

Dear Sir, I have a quick question for you. Will it be yes or no. Do we have to give her Social security number in the form. Can you suggest please. As your mother lives in India, she is an Indian resident and is not allowed to maintain an NRE account and the interest on NRE account would be taxable for her.

Thanks for this great post and your prompt replies to all of these queries. I have one question myself. I am resident of Canada since I have been maintaining saving bank account and few FDs in India. So they are normal accounts still. I have been paying taxes to interest earned to India and have also been declaring that income in Canada and getting tax credit from Canada for tax paid in India. I would recommend you have a documentary evidence email from bank of your communication, just in case.

As you have reported the Indian account in your Canada and reporting the income in Indian in your tax return in Canada, I think you are okay. My account told me since I am tax resident of canada and my income is from Canada I just need to declare that to Canada only and pay taxes to Canada on that. And also told me to declare only interest income in india as it was occurred in India.

This is fine as Only Ordinary Residents of India are required to report global income. Please contact your bank and CA. NRO already deducts 30 or 40 percent tax. If you have invested as a sole proprietor i. However, I would think you would have invested in a personal capacity so I would think SSN would be required to be provided. Bank would report all the accounts. They will report both the balance and the income. Who are the regulatory and monitoring agencies in India to whom I can approach in this regard?

Three of you needs to sit together and find a solution. Every institute has their own internal requirements and procedures.

Dear sir, I am working saudi arabia since In saudi arabia there is no income tax system. This both accounts are using local expenses for my parents and wife. Also very less transaction. This domestic savings account need to be changed to NRO? In your case, you may provide the Iqama number in the CRS declaration. What you have did on it?

As i am not a resident of any country other than india as i work on ships worldwide what details i have to fill in the form about my country of residance other than india? I also got that letter after 2months as the ship was at sea and no mails can be received at sea.

You would inform the bank of the same and that you are not a resident of any other country and explain in the form. No need to worry about the delay. I would suggest you to contact your CA and seek his advice. I would think you would have file your Indian tax returns from as you are only allowed 2 years to file your tax return i.

S citizen but living in Singapore. As a resident of Singapore, CRS will apply to you. At the outset, thanks so much for contributing this piece. In light of this, I have a scenario for your analysis:. I run a private limited company in India where we own licenses to several video games.

These video games are used by a telecom player in India on an gaming app to engage their users, for which they pay us. Here is the complex part. They do not pay us directly. All payments flow to us through their platform partner, which a company in the US. Is that the correct position to assume or is there a way to avoid such a high witholding? The withholding rate would depend on the nature of payment.

If there is a withholding, you would be able to take the credit when you file the US tax return and get refund. Else, when you file the Indian tax return, you would be able to claim the same as foreign tax credit in your return. It works in the same way as TDS in India.

Thanks a ton for the information. I am an Indian working in Saudi Arabia since Arpil Does it apply to me as well or only people working in US? Also kindly guide me through the procedure as the Bank did not give proper details. You would need to update bank about change in residential status and provide the tax ID of your country of residence.

I think Saudi Arabia does not have any taxes so you would provide the resident permit number a. As per Qatar Law, resident include permanent home in Qatar, i donot fulfill these requirement. Also i am not covered by any tax law in qatar and Qatar govt will enter into agreement by next year. So what should i fill in the column tax residence country. The definition is to be construed as tax resident and not immigration resident. As you have been living in Qatar, you are a tax resident of Qatar and would need to declare as such.

Mutual Fund Investments in India: Since this a pooled investment vehicle. Is tax payable to IRS even when the mutual fund units are not redeemed on annual NAV appreciation end of the respective calendar year? If this is true, is there a way to legally avoid paying tax on the annual notional gain on Indian mutual funds in US?. I do want to pay actual tax on capital gains when the units are actually sold not on notional annual NAV appreciation.

Investment into individual stocks in India: Is this better than mutual funds. Does tax liability arise only on sale of the stocks instead of notional gain as in the case of mutual funds? You have few options how you want to treat your MF investment in India. Paying tax on unrealized gain is the most beneficial. Capital gain is on sale for Shares investment.

I would think 7 years including current year. I would keep 10 years just in case. I am a Canadian Citizen of Indian origin. I am not sure why they would require my Canadian Social Security Number. I have no income in India and the only income is some dividends from shares of a public sector company in India. The taxes from these dividends are deducted at source.

I am not sure if I should provide the SSN as it is very sensitive information that could easily lead to identity theft. You Tax ID would be required. If not, you would need to give the same to the bank.

I regularly send money to my parent in India by transferring funds from NRE account. The funds transferred from Australia are from my savings here. I did earn small amount of interest on NRE account below 1 lakh.

Do i need to declare the interest in my tax return in Australia? I filed as resident for US taxation for with minimum 31 days in in USA and counting following years days with days at least. My doubt is — for India taxes — I am resident for as well as resident for US in I am resident in both countries but finally which country I will be called resident as for this common period?

If you move on Nov 1, for the first time, I am not sure how you calculcate days in preceding years as you have not stayed in USA in or or unless you moved as a greencard holder. You are an Ordinary Resident for Indian tax purpose so you would need to include your US salary in your Indian tax return. Ofcourse, if you have paid tax in USA, you would be able claim the same as a Tax relief in your Indian tax return 3. If no greencard, I think you would not be a resident of USA.

You would need to do pay tax as well as report all foreign accounts in your Indian tax return. I am an NRI. However, I find the paperwork and procedures so cumbersome and time consuming that I just gave up.

Wish government has simplified the process. My question is — what is the expected penalty for non conversion of Resident Demat account to PIS account. I am thinking I should just pay the penalty rather than going thru all the hassles so long as paying the penalty amount itself is not a hassle in itself.

Please advise as to what are the consequences and quantum of monetary penalty Thanks Mysore. There have been some bank account which have not been reported over the last few years , but with very small amounts. For example rupees of yearly interest tax 11 to 12 dollars at 25 percent.

And in another account case an yearly income of 50 rupees with tax liability less than a dollar. But what if the tax liability would still be zero, even if the above said unreported income is included? Will the IRS allow to amend the tax returns in a case like above even if for years more than 3 years back? Infact for returns belonging to years 5 to 7 years back? Instead, you may also want to close those account. Thank you for sharing the article. With no connection to any Foreign country or income.

If you have no foreign connection — not a resident of any country, it would be very quick and easy. Now he stays more in India due to mother and files return in India. He is retired at the age of 54 and now he is He goes to US twice a year to maintain his green card since he finally wants to settle there. He has a salary account in US when he was working which has some funds when he left the job and maintained it for his expense when he visits US.

He has no income other than interest on his savings. What is your advise on his account in US. He is a resident of India for income tax purposes and need to report his worldwide income in India.

He is allowed to maintain his accounts and investments in USA; however, he would report his foreign assets in his Indian tax return. Also, he is not allowed to maintain NRE account in India. He will get the credit for taxes paid in one country in the other country. Inadvertently he forgot to include a new bank account in FBAR as well as , and also did include the interest income from the account in the tax returns.

But even if the said rupees is added to the respective years tax returns, the tax payable will still be zero. Also note the additional fact that for the same year, the interest income for one of the declared savings account was overstated by 20, rupees i. How will the IRS look at this scenario while some income has not bee reported, there is no underpayment of taxes even if you add the under reported income?

Will the IRS allow to amend the tax returns of a past year, in this kind of scenario? Unless tax return is amended with correct amount, IRS would not know there is over reporting of income in one account. As mentioned, contact your CPA 1. I would think amendment of tax return is allowed.

It is very informative. Is it correct to calculate the net worth by: You may just give your annual income. No need to give correct networth. However, please see 1 above. I have already filed income tax returns for in US.

I have not submitted FBAR for and form Should i file a amended return and file FBAR and form I have axis bank account in india, wherein total credit was around 13,00, INR from Jan to December How should i deal with this? I made LIC retirement plan premium payments till Sept Only one payment through US source of income , but after that could not do the same, because of the financial issues.

Dumped all the indian shares total worth of INR 85, Lost arount 20, INR. Please let me know what should i submit under Country of tax residency: Yes, I would think you need to file your tax return and any other forms that you have not filed.

I would recommend you to consult your CPA for the same. For Indian tax return, you would need to file tax return only if your income in India is more than , Currently, you are a tax resident of USA. You are not a resident of India.

I would not recommend lying as it can be evident from your passport that you are a US resident for tax purpose. You may close the account as you only have Rs. I forgot about this as I was working with a family business about 10 years ago when I created the account as I was a foreigner and was able to transfer money overseas easier. I am ready to transfer the funds back to my family members who the money belongs in the first place. As Ive never filed an FBAR and have no other accounts overseas , would closing the bank account now in cause more problems than leaving it?

I dont think Ive received a W-9 yet either. Thanks in advance for the advice. If you have not reported the account and do not intend to amend your return or file FBAR, you may not want to be the owner of the account. I am not paying any tax in Kuwait. I have a demat account with Sharekhan which is started in when I was working in India.

I am still trading the shares through this account. I have only the income from my salary in Kuwait. I have been in US on L1 visa for less than 3 months in I will be filing returns as resident. I am an Indian, was in India till 5th August , recently moved to Kuwait for work purpose. So in my case please suggest what would be my country of tax residence.

Technically, your country of tax residence would still be India. Only after 6 months of stay in Kuwait, your country of tax residence would be Kuwait. Found this while looking for information to assist her with her current situation.

I had a couple of questions: She filed her F-Bar yesterday — 23rd August which is well past the last date of filing — 30th June Would she have to pay any penalties due to this delay? Would that cause her to do any reporting? Not know for sure. Only India and other countries will start reporting from June 30, No if he is not a US resident.

Technically, she need to report to IRS the gift amount. It is not her money anymore as she has already gifted. Thank you so much for your time on answering these questions.

My cousin is very grateful. We both wanted a clarification on the last question —. Gift tax is on giver as per US tax laws and not on receiver. Any foreign gift is not taxable in USA so she would not have to pay any gift tax for gift from non-US resident Indian father.

However, IRS needs to be informed. There is no gift tax limit for receiving gift. However I have invested some amount in stock market with the money that my husband gives me. USA address or India address? In the criteria of whether Tax resident of any country other than India, Should my answer be yes or no? I am not paying any tax in USA as I am not working here.

You can give both addresses. Thn I opened trading account for shares in India under nro. If you do not plan to leave India and you have moved back with an intention to stay permanently, you are an Indian resident under FEMA. The question is not whether you are an NRI in India, the question is whether you can be claimed as a resident of any country other than India as per their tax residency requirements.

If you are considered also as a resident of China, you would be both resident of India and resident of China.

I am in US on H1B visa for last 3. I have few deposit in INdia and it is not declrared in US tax filing. Currently am investing small amount of mutual fund SIP through that. Yes only if the income is taxable — No TDS if exempt income i. LTCG on sale of equity mutual fund 3. Here i dont have TIN as iam below the slab line, i used to transfer funds through western union to my SBI domestic account.

It is now part of updated KYC requirement. You are an NRI. I am here in US for less than a year. I have filed the tax return under non-resident category. You can continue investing in SIP. It would depend on the MF house. Thank you for your eye-openers! Pl advise on my predicament. However, you are also a US resident. That is why they declined. I am in US on H1B via for last 3 years. Does that make me a US person? Does that make me a violator? Will my account be closed by my bank after warnings?

The year since when you have been filing and not NR, you are a US resident. Yes, you need to include both interest in your income. While you may not have to pay additional tax as TDS However if you have filed tax return and claim refund, you would have to pay tax in USA.

FBAR requirement would also apply. As you are a resident of USA for tax purpose, you need to report your Indian income in your As you have been filing , you are a US resident and are obligated to report Indian income. Immigration status is not relevant for Income Tax. You need to plan your investments. Please consult your CPA or us. In I was involved in an accident. The fund was deposited in NRE account and any interest accrued was used to pay debts as I was unemployed for two years as a result of the accident.

Later it was invested in MF and Shares. During the investment saw a huge loss and now made a moderate gain after many sell and purchase of shares. Where do I stand? How capital gain is calculated? Now, it is INR How will I be taxed. Need detailed information with dates and amount by year. I am maintaining NRE account since Does this get reported or only the accounts opened after