February 2018

Tax Benefits for NRIs in India through PPF & NSC Investment

February 27, 2018 Manoj Sodhani Comments 1 comment

Smart people move ahead while securing their future. The digitization and email marketing have given a break to the monopoly of the highly educated bank and corporate officials. Now, the investment policies and plans are vulnerable to the commoners as well.

Haven’t you noticed the email prompts from the banks and financial institutions?

I’m dead sure that you’d have glimpsed it. It’s an open invitation through the frequent prompts to invest specific amount. Whether you would be a permanent resident or an NRI (non-resident Indian), the volley of these messages tend to ping on your mobile phone. Even, the inbox seems filled with half a dozen of the lucrative investment plans.

Why do people save money in the PPF account?

Do you know why people tend to chop off a good share of their hard earned money in the PPF (Public Provident Fund) account? Why do corporates die to get a National Saving certificate?

It’s a traditional instrument of securing funds for long term for the salaried employees. They tend to enjoy the privilege of tax deduction. Of course, nobody likes to deduct a good share of his hard-earned money as tax. Hence, they like to invest in the PPF account. This is a government approved privilege that assures save on the tax.

There is one more provision of serving the same purpose. It’s based on the National Saving Certificate (NSC).

What’s the NSC?

It’s basically related to the small savings. The government offers savings bonds in its form. The Indian Postal Service (IPS) is the competent authority that issues it. This is a good alternative to choose for a small NRI investment and saving tax.

What’re the benefits of PPF (Public Provident Fund) and NSC (National Saving Certificate)?

Risk free long term investment:

Since these are the offerings of the Indian government, any NRI or permanent citizen can invest. The government takes guarantee to credit the licit and prevailing interest rate on them. The chances of money laundering and fraud will be negligible.

Interest income from PPF a/c & the NSC exempt:

As per the Section 80 C of the Income Tax Act, 1961, the eligible investors can take leverage in the tax up to INR 1.5 lakh. Those who have the NSC can also have the same privilege of tax deduction.

However, these schemes are subject matter of the government affair. Therefore, it is the only competent body that can make the changes in it.

Perks from government in Tax:

The government offers 7.6% per annum interest rate over PPF & NSC. It was around 8 percent during the previous financial year, i.e. January-March 2018. This rate of interest is altered quarterly.
As foretold, the government is a decision maker that defines the applicability of these schemes over the NRIs. Recently, it pushed them out of these schemes’ benefits. Their benefits are meant for only residents now.
If its holder would qualify for an NRI status, the PPF fund or the NSC account would be terminated. The accumulated money in these accounts would draw the minimum interest that would be equal to a Post Office Savings Account (POSA). Currently, it’s around 4%.

Tax deduction applicability:

Section 80C of the Income Tax Act would be identically applicable over the residents and non-resident Indians. Therefore, the NRIs would be able to enjoy the privilege of tax deductibility under this Act.
The residency would be no issue under the tax laws and the foreign exchange regulations. It would define the non-residents on the basis of the physical presentism in India. There are a few contradictions since the Foreign Exchange Management Act (FEMA) distinguishes the NRIs as the ones living in the foreign. So, this clause needs more clarifications.
If the non-residents want to invest in the other NRI services, like the EPF (Employees Provident Fund) in India, the other international treaty as the India-Singapore Comprehensive Economic Cooperation Agreement (CECA) would not be impacted.

Correct Way of Filing Single Status Affidavit in India to Wed

February 21, 2018 Manoj Sodhani Comments 0 Comment

Are you confused over how to file for the single status affidavit in India?

Alas, solemnizing marriage in the foreign country would be as simple as falling in love! It can be your story as well. The foreign land is not as liberal as India. You need to present a document in support of your single status. It’s licit as per the foreign law.

How would you get it?

What documents do you need to support your bachelorhood application?

Do you need to fill any application form? Or, do you need to have an affidavit?

These questions would be drilling into your head. It’s obvious.

Let I put off your curiosity through these tips. I would briefly mention the name of the documents required and its application procedure. The most important aspect is filing the single status affidavit in the court.

How can you get it?

Your dilemma is valid as India has no competent authority for addressing this problem. Hundreds of emigrants with an Indian passport stay in the USA, UK, Malaysia and other nations. While giving their career a long flight, they take a route to abroad. In the interim, many of them settle with the foreigner as a life-partner.

Only the court can let you sail through this problem. What all you need to do is:

Visit the court.
Meet the oath commissioner or the notary magistrate. Both hold the authority to put a stamp of approval on the affidavit of single status. This certificate can be known as No Record of Marriage, Certificate of Freedom to Marry, Certificate of No Impediment for Marriage, Certificate of No Record – Marriage, Affidavit of Marriageability and
Certificate of No Public Record.
Fill the affidavit form.
Get it attested from the magistrate.
Get it apostilled from the MEA (Ministry of External Affairs).
Later, let it be attested by the embassy of the foreign country.

Which documents do you require to support your CENOMAR application?

ID proof (Aadhaar Card/ Voter Id/Driving Licence)
Address proof (Utility Bill/ Bank Passbook)
Birth proof (Birth certificate/Non-Availability of Birth Certificate/10^th class Mark Sheet )
Parent’s affidavit
Decree Absolute (if you’re a divorcee)
Death certificate of the deceased spouse (if your spouse is no more)

What is the correct way of filing the single status affidavit in India?

The foreign law varies as per the country. Let’s say, the USCIS authority of the USA asks for the parental affidavit along your same document. In that case, you need to apply for two affidavits. One would represent you while the other one would echo the consent of your parents.

You must keep the bird’s eye on these points that they are written subtly. These points are commonly introduced in the sworn documents of yours and your parent’s:

Name of the Affiant (fill the name of the would-be spouse and the parents’ name in two different affidavit forms).
Residential address and country (of the would-be spouse and the parents separately)
Birth date (of the affiant and the parents)
Country name (of the affiant and the parents in the separate affidavit)
Passport number (of the affiant and the parents in the separate affidavit)
Marital status (of the affiant)
Name of the would-be spouse
Country of the would-be spouse
Signature (of the affiant and the parents at the bottom)
Date (when it is filed)
Statement (of no marriage by the affiant and the parents)
Date of divorce (of the affiant if he/she is the divorcee)

If you don’t want to file for it in the court, you can still withdraw it. You need to do it on the non-judicial stamp paper. Get it notarized by a local notary.

With all these tips, you can get your certificate of no impediment or CENOMAR or bachelorhood certificate without any hitch.

Class 1 Officer Attestation Not Must for Tatkal Passport

February 20, 2018 Manoj Sodhani Comments 0 Comment

Are you willing to get a passport?

You can apply for it for whatsoever reason. Before that, you must go through the recent amendment that the ruling government has introduced. It’s about the so called Tatkal Passport. It’s basically issued to meet the emergency need to fly across the border.

Do you know which colored passport you’re going to have? Does it sound absurd?

Let’s catch on a few facts about its classification in the next section.

How many types of passport are there?

The passport authority has classified the applicants under three categories. You can identify them with its jacket colour or cover. Firstly, let me introduce the three categories which are:

Government officers
Diplomats
Laymen

The government officers would be issued a white-colour passport. This colour is changed to red for the diplomats. The rest ones, like you and me, cover laymen who would be given a blue-colour passport. The government executed this colour scheme for the passport jacket.

The MEA and the ministry of women and child development (WCD), earlier, decided to issue orange passport to the ones who have not yet passed 10 class exams. However, the recent amendment is called off since it drew a lot of flak. So for now, there would be no orange coloured passport issued to the needy of the emigration clearance check. Albeit, the last page, that reads the personal particulars of its holder, is printed in the same orange colour.

The police and immigration authority use these personal particulars to verify its bearer’s identity and nationality.

Who does come under Class 1 officer?

It is to drill into your head that the stamp from a Gazette officer or class 1 officer over supporting documents used to be essential. It was the tale of yesterday. Today, it’s changed. Now, you don’t need the attestation service of the class 1 officer.

The class 1 officers are the Gazette officers. They are the government servants who are designated at the level of deputy secretary or above in the state or center. The district collector, superintendent of police, assistant commissioner and tehsildars collectively define the category of the Gazette officer or Class 1 officers.

What the Ministry of External Affairs (MEA) has amended?

The recent amendment applies to the issuance of the Tatkal passport. Now, the seal of verification from the class 1 officers is no more a must to have for this passport service. It’s a gift of convenience to the laymen who’re going to be an NRI.

The government has assessed the dilemma of the laymen. It found that everyone has no reach to the class 1 officers. So, it was a Herculean task to get their documents attested from the Grade 1 government officers. The findings revealed that usage of the discretionary power is a norm. Only influential people enjoy this privilege. Therefore, the government has abandoned that barrier. It’s the impact of higher level of trust in the common man.

Which documents are required to apply for tatkal passport?

The altered provision stated these documents to be attached in support of your passport application:

Aadhaar Card
PAN Card
Election Card

A year ago, the birth certificate or birth proof was a mandatory document to submit. Now, the aforementioned documents are required only.

How many days does it take to process?

The Passport Seva Kendra (PSK) takes just two to three days for processing this kind of application. Most of the expats find it an outstanding NRI service to get it in a short fragment of time. But, it won’t be dispatched unless the paperwork is completed and submitted to the competent authority.

Eventually, the applicant receives it via postal service.

Aadhaar Card Can Be Your Birth Proof For Driving Licence

February 14, 2018 Manoj Sodhani Comments 0 Comment

Birth Proof Not Necessary for Driving Licence:

On February 9, 2018, the government brought a ‘Eurekha’ moment for the driving licence seekers. Yes! It’s true. Finally, the ruling government came with an amendment. The proposed rule states that the birth proof is no more confined to the birth certificate. The licence applicant can replace it with Aadhaar card.

Since it contains both age & address proof, the legislators have weighed it equal to the birth certificate. Therefore, no more hassles would let you to tussle for presenting only the birth certificate.

Earlier, the passport and visa authority approves the documents of the applicants with the birth certificate.

Amendment in Licence Law:

A draft notification is submitted to the law ministry for legal vetting in this regard. It carries the modified rule of Aadhaar’s inclusion in the document requisite for verification. The proposed notification carried the draft of the refined licence application form for the driving licence. The change in the legislation will reflect in the amendment of the Central Motor Vehicle Rules, 1989.

What changes will reflect in the driving licence application form online?

The application form of the driving licence is revamped. Its previous blueprint did not show Aadhaar amongst other age and address proofs. The applicant had to select, scan and enclose the age proofs shortlisted in the drop down list of the requisite documents.

The Law & IT Minister Ravi Shankar Prasad stated, “Aadhaar would reflect in the incorporated list of the documents required for the licence. It would be an addition to the list of the address and age proofs.”

What more documents can you incorporate if you don’t have an Aadhaar Card?

Don’t you have Aadhaar? It’s ok. You can go for some other alternatives. These include:

Passport
Birth Certificate
Life Insurance Policy etc.

Is it secure to use Aadhaar for the licence?

On being asked if it’s not secure to upload the Aadhaar card, the Law Minister clarified firmly. This is a core competency of Unique Identification Authority of India (UIDAI). It has combated the threats to its security. It has put adequate legal, organizational and technological measures in place to keep it invulnerable.

The UIDAI keeps all sensitive information of every Aadhaar card bearer confidentially. However, breaking in the biometric details that contain the scanned iris and fingerprints is a hard nut to crack. But to create more robust security confinement, it has encrypted the data file of every card holder. And the encrypted files are stockpiled at UIDAI’s Central Identities Data Repository.

Now, it would be next to impossible to decrypt those sensitive files without its key.

What provisions would be there if you’ve neither birth certificate nor any other birth proof?

This is the biggest lag that can terminate your wish to get the driving licence. But, you can get out of this hot water.

You can visit the nearby Municipal Corporation or Village Panchayat. It must be the one located where you would have taken birth.
Inquire about the birth certificate.
You need to withdraw a non-availability of the birth certificate (NABC).
Produce all supporting documents, like passport or 10^th class marksheet, address and parent’s proofs.
The Registrar/Sub-Registrar will issue the NABC after verifying the supporting documents.

How Can You Apostille Birth Certificate in India?

February 9, 2018 Manoj Sodhani Comments 0 Comment

‘Apostille’ stands for the authentication. It marks the certificate of authenticity. Without it, the birth certificate form or visa application seems just an inexpensive paper. This stamp converts it into a precious asset of yours. As per the Hague Conventions, an apostilled birth certificate, for instance, would be a legal document. It would be valid internationally.

Why is birth certificate essential?

Your birth proof is not an obscure paper which you would never need. Reversely, it is a must-have proof. You would realize its significance when you’ll apply for the driving license, Aadhaar UID card and even, the passport & PAN card.

Later, it would be a valuable asset to apply for the visa as well.

How can you apostille the birth certificate in India?

The legislation permits the regional municipal corporation and the village Panchayat to issue & attest the birth certificate in India. The registrar or sub-registrar is deployed as its competent authority. You have to collect it within 21 days of an infant’s birth. The authority avails it absolutely free of cost.

You have to apply for the birth certificate exactly where you’re born. So first, identify your birth place. Then, visit the nearby Municipal Corporation (MC). Go along with all supporting documents.

Documents for Birth Certificate:

If you don’t have any idea, you can catch on this list of documents to take along:

School Leaving Certificate /10^th Class Mark Sheet
ID proof (PAN card/Ration Card/Voter ID /Aadhaar Card)
Address Proof (like Electricity Bill/Water Bill/ Bank Passbook)
Photo of the applicant
Affidavit of your parents (mother & father) or of any family member (like elder brother/sister)

Non-Availability Certificate At MC office:

When you would fill your birth application form at the MC office, they would issue a certificate called non-availability of the birth certificate. It reads that the applicant’s birth proof was not found after a thorough research. Therefore, the registrar puts the stamp on that document. This document subtly reads the name, address, parent’s name and other details of the bearer.

Subsequently, the applicant can go to the court. He/she can withdraw an affidavit from there. It’s a sworn statement of the affiant that whatever details he/she has put in it is valid. The affiant can be the applicant himself/herself. Then, he/she needs to enclose it with the other supporting documents as aforementioned.

Apostille Birth Certificate in India:

The concern for apostille of the birth certificate arises when you need to settle/fly abroad on visa. It is an essential step of immigration. You have to go for the apostille service carrying along multiple documents. They include asset valuation report, tax report, financial status evaluation report, appointment letter, and many more ones. The birth certificate is also one of them. So, you have to consult it with an attorney or lawyer or the third party like Services 2NRI who deals with the immigration documentation process. He would provide words of useful advice that would remove all roadblocks in between your visa approval.

If you personally want to do so, you need to visit the Ministry of External affairs and the Embassy of the country where you likely to go. The competent authority will verify your documents on the date of appointment. You must take along the original proofs as well. After getting satisfactory answers from you, the embassy will apostille your birth proof and other documents.

You throw the ball during the interview you can come for second time as well. But before that, you must consult the matter with an experienced attorney.

How to Get Letter of Recommendation from India?

February 6, 2018 Manoj Sodhani Comments 0 Comment

Do you likely to go abroad for studying?

Are acquiring higher college degrees from abroad at any side of your mind?

Well! It’s not as simple and easy as you think. You can make a passport. But, it’s like swallowing bullets when it comes to getting a student visa. The foreign governments have come up with some robust guidelines. These are the stringent laws. You can’t violate them.

The immigration officers act like a doubting Thomas (who wants proofs/valid reasons). They don’t allow you hit the road of their country unless you satisfy them with authentic reasons/evidences. So, you must be ready with your school/college admission papers, degrees/certificates, birth certificate, purpose of visit, attestation, letter of recommendation and boarding tickets.

Sometimes, they need some prominent proofs to let you in their country. So, you must be accommodated with all such proofs with a clear set of mind.

What is a Letter of Recommendation (LOR)?

The Letter of Recommendation or LOR is a reference letter. It contains critical information about your school/college/job performance. Wherever you apply for admission abroad, the authority seeks this letter. It’s a written proof recalling the student or career phase of the applicant. Mostly, the foreign immigration authority doesn’t settle with one LOR. It requires at least 2 or more such letters that have the true briefing of the applicant’s internship/ academics/ employment/skills and talents.

You must pull up your socks to get a nod from the immigration office of the foreign country. Get it drawn from the school/college/organization.

Why is it required?

An impressive LOR can make a difference. Yes! You can get an approval in a nick of time by showing it. Let’s say, you want to join a multinational company in the USA. Most of the employers filter out the applications that enclose this recommendation letter. Your employer also wants you to attach it with your visa application. If you live in his expectation, the approval will be all yours.

Likewise, you can sail through all barriers of an admission in any luxurious college of the foreign with it. It reads the remarks of the renowned learned teacher/lecturer/reader/employer. The referee inputs your achievements, skills/ talent, degrees & project details in detail. So, it become like a piece of a pie to select the best candidate for the visa.

Tips to bear in mind while getting the LOR:

Who would write the LOR:

It seems pretty easy to answer –who would write this letter to you. Is the college/school dean in your thoughts? Yeah!

Don’t live in the fool’s paradise. For this letter, you need to visit your former teacher/employer. He/she should be the subject specific teacher. Go to someone who is your known. Since it’s a crucial letter, your teacher must be well-versed with your fortes. Who else would be the one than your own teacher?

Communication skill:

It’s an important aspect to identify whether or not you can survive amidst the foreign people. English is a universal language. You can crack the ILETs/TOFEL to make it easier for the immigration authority to select you.

They will conduct a round of interview where you may encounter some career & work/study-oriented questions. Be ready with your counter-communication skills. Be spontaneous and specific to state the purpose of your visa. If you bite your tongue, they would read your false instincts.

Attend the application letter:

If you’re likely to study in the foreign school/university, read out the application form or prospectus thoroughly. It subtly states the documents to be submitted. You ought to get the Letter of Recommendation from India as per specifications of the application form. Most of the time, it asks for the one from the subject-teacher and not from the dean.

State your achievements/skills/internship/seminars/project clearly:

Do visit the referee with your mark sheet/ certificates and transcripts. They would help her/him to write an impressive piece of your achievements & pro skills. Request him/her to

Mention about your participation.
Name a few of the most effective projects.
Brief the challenges that you faced & how you jumped through those hoops.
Write about your learning journey.
Spotlight the areas where you showed a substantial piece of improvement.

Avoid mentioning the undone:

What you have not attempted, never try to give it a place in your LOR. Sometimes, a few candidates try to pose them as a volunteer which they actually are not. This practice can throw your application into the rejection box.

S2NRI

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Month: February 2018