Sandesh. Issue: December Monthly Newsletter for NRI patrons. Inside this issue

Transcription

1 Monthly Newsletter for NRI patrons Issue: December 2018 Sandesh Page I II III Inside this issue Content NRE, NRO & FCNR deposit rates Retail Loans Interest Rates Latest Financial News for NRIs For any Suggestions/Queries/Grievances us: nricell@corpbank.co.in Or Contact us on: / I

2 Interest Rates on NRE Deposit Rates (w. e. f ) Maturity Bands Less than Rs.1.00 Crore < Rs.10 Cr 1 year to 443 days days only days to 554 days days only days to 665 days days days to less than 3 years years & Above ) Interest Rates on NRO Deposit Rates (w. e. f ) Rs.5 Cr Less than Maturity Bands < Rs.5 < Rs.10 Cr 7 to 14 days to 45 days to 60 days to 90 days to120 days to 180 days to 270 days days to less than 1 Year year only > 1 year to 443 days days only days to 554 days days only days to 665 days days days to less than 3 years years & Above ) Interest Rates are subject to change. Kindly contact the branch for prevailing interest rate OR visit our website No interest will be paid if any NRE Term Deposit is prematurely closed within a period of 12 months. Penalty for premature withdrawal at 0.50% p.a. will be charged on deposits above Rs crore accepted/ renewed on or after Interest rate on NRE SB is at 3.5% p.a upto 50lakhs & 4% for above 50 lakhs. II

3 The Interest rate on FCNR (B) deposits w.e.f. 1 st December 2018 Period of deposit Interest Rates (per annum) USD GBP EUR AUD CAD 1 year to less than 2 years years to less than 3 years years to less than 4 years years to less than 5 years years Interest rate on RFC SB (denominated in USD, GBP and EUR) accounts is 0.50% p.a. Interest Rates are subject to change. Kindly contact the branch for prevailing interest rates OR visit our website For other terms and conditions, please contact your branch. The prevailing Interest Rates on Housing and Car Loans (MCLR based rates w.e.f valid till ) CORP HOME [Home Loans under floating rate] CORP HOME [Home Loans under fixed rate] Corp Vehicle [Personal vehicle loans under One Year MCLR (%) 8.95 % SCHEMES ROI % Processing Fees w.e.f Up to 2 Crore 8.95* Above 2 Crore 9.30 Up to 25 Lakh Above 25 Lakh Up to Rs 50 lakh 9.60 floating rate] *valid during festival offer with concession of 0.10% For more information please visit our website No processing charges during Festival Offer retail loan campaign, valid till % of loan amount (Max Rs.50,000/ ) No processing charges during Festival Offer retail loan campaign, valid till III

4 NEWS FROM INDIA NRI taxation: Residential status needs to be fixed afresh every FY Residential status is dynamic and needs fresh determination for each financial year. Residential status in India is determined based on physical presence in India in the current financial year (FY) and the preceding 10 FYs. If the individual satisfies any of the basic conditions mentioned below, the individual would qualify as a resident; otherwise he or she would qualify as a non-resident. Basic conditions: (a) Physical presence in India during the relevant FY is 182 days or more; or (b) Physical presence in India during the relevant FY is 60 days or more and 365 days or more in the preceding 4 FYs. The period of 60 days is substituted by 182 days in the following circumstances: (i) For a citizen of India, who leaves India in the relevant FY for the purpose of employment outside India or as a member of the crew of an Indian ship; or (ii) For a citizen of India or a person of Indian origin, who being outside India, comes on a visit to India during the relevant FY. A resident may either qualify as an ordinarily resident or not ordinarily resident. If both the additional conditions mentioned below are met, then the individual would qualify as an ordinarily resident; if not, such a person would qualify as a not ordinarily resident. Additional conditions: (a) Resident in India (as per the basic conditions mentioned above) in any two out of the 10 FYs preceding the relevant FY and (b) Physical presence in India is 730 days or more in the seven FYs preceding the relevant FY. An individual qualifying as ordinarily resident is taxable on his worldwide income in India and is required to report assets held outside India in the Indian tax return. IV

5 However, an individual qualifying as not ordinarily resident or a non-resident is taxable only on the following conditions: (a) Income received in India or deemed to be received in India and (b) Income accruing or arising in India or deemed to accrue or arise in India. (Source : MINT Tue, Sep ) NRIs need not reveal details of foreign bank accounts, assets to Tax Dept, rules ITAT The Income-Tax Appellate Tribunal (ITAT) has said NRIs do not need to reveal the details of their foreign bank accounts and assets to Indian authorities. The tribunal has also ruled that the onus is on the I-T Department to prove that an assessee has parked undeclared income arising from India in foreign bank accounts. The recent judgement was passed in a case involving Japan-based NRI Hemant Mansukhlal Pandya, who has an account with HSBC Bank in Geneva. Pandya, who has been living in Japan since 1990, is a non-resident taxpayer since , and received a Japanese residency certificate in The assessing officer erred in making additions towards deposits found in HSBC Bank, Geneva, under Section 69 of Income Tax Act, said the Mumbai Bench of the ITAT. It further noted that the government has also acknowledged that an NRI foreign bank account is not illegal and that the provisions of the Black Money (undisclosed foreign income and assets) and Imposition of Tax Act,2015, are applicable only to residents. (Source : Business Line Thursday, Nov 29, 2018) Disclaimer clause: The contents of this newsletter are based on information received from various sources and while compiling every effort has been made to ensure that the information is accurate and authentic. Corporation Bank does not accept any responsibility for interpretations of various rules or any errors/ omissions in the newsletter. V