NRI: demat account option - HUF, NRO, wife's demat, etc.
Please advise me on my planning;
I have invested in property out of my earning during my employment in India for 15 years.
Now; I'm working (more than183 days/year) abroad for last 6 years.
How to organise my accounts, fund, property, etc.. and what is the best way for effective Income tax Planning?
- I have resident saving bank account - 4 accounts with various banks
- I have 2 credit cards
- I have 1 NRI bank account where remittance is done
- I have resident 1 DEMAT account
Please advise me on various queries like;
1. Should I close all savings accounts?
2. Should I close my existing resident DEMAT account?
3. Should I open Resident HUF for my nucleus family?
4. Should I open resident DEMAT account on my wife’s name or on my HUF’s name or on both? Or Should I open HUF DEMAT NRO-PIS account or something else?
5. Should I open NRO-PIS Demat account on my name?
6. Should I register a Pvt company for effective tax saving?
7. What should I do with my property; Agriculture land (I’m son of farmer so I can buy this), houses, etc…
Note: I will discontinue abroad assignment in next two year, i.e. I’ll be resident.
23-Param R/House, Nr. Sardar Bridge,
Tapi River Front, Adajan, SURAT-395009, Gujarat, INDIA.
+244 940 161 678
(+91) 97143 77809, 99980 99011
Asked 4 months ago in Income Tax from Surat, Gujarat
Sir first of all let the accounts continue. Also tell how much time you will be abroad to give you more clarity.
Talk to Shyam Sunder Modani
4.9 on 5.0
i would suggest following as you are planning to return to India in few years time:
1) convert your saving accounts to NRO accounts
2) change the residential status in Demat account.
3) no need for that.
4) i suggested above just need to change residential status in demat account, or if your wife is resident Indian you can open new account in her name but you need to transfer all shares and securities in her name, it is complex procedure.
5) no need
6) Pvt company has to adhere to many statutory compliances on regular basis, and one director should be resident indian to open an indian company.
7) if you are planning to come back india you can meanwhile put your property on rent.
whatever earnings you earn in India for that you need to file Income tax return in india.
Talk to Vishakha Agarwal
5.0 on 5.0
Dear Mr. Parmar,
Please find the response below:
1. You can continue to hold savings account but for convenience purpose better keep maximum 2 accounts and you can also convert your saving accounts to NRO accounts
2. No needed, You need to inform you bank to change your residential status in Demat account.
3.Not a viable option. Because residency status of HUF will be same as residency status of Karta i.e. you.
4. you can open Demat in your wife's name but any tax on sale will be applicable to the person who is funding the investment.
5. I am neutral on this point.
6. Not suggested due to number of statutory compliances involved..
7. it depends on your preference whether you want to keep it idle, rent it our or sale it
Please feel free to call/ revert in case of any doubts
Thanks and Regards
CA CS B.Com
Talk to Abhishek Dugar
5.0 on 5.0