Prajna Capital

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• Types of Bank accounts for NRIs
• Protecting your Provident Fund
• Home Insurance

Types of Bank accounts for NRIs Posted: 24 Mar 2014 05:06 AM PDT Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300     If you are one of those people who has begun to earn your income abroad, then you must be knowing that you cannot continue with your existing bank accounts. Your income must be in a different currency and some of your expenses might be in Indian rupees. You might also expect some income in India like interest and dividend and so would like to have an account in a bank that operates out of India.  It also might be the case that the interest rate in your bank account abroad is not the greatest rate and you might be thinking of keeping some of the money earned in a bank in India to avail of better interest rates. Here are some pointers on how to do the same and we also compare different avenues of saving money earned abroad in banks. There are three types of accounts for NRIs to operate –NRE, NRO and FCNR accounts. Many banks in India have the facility to open any of these accounts. Let us look at the salient features of each type of account.   NRE Account - Non Resident External Account This account is a bank account that can be opened using foreign currency and then the account is maintained in Indian Rupees.  It can be a savings, current on term deposit account.  It can be held as a joint account with another NRI (Non Resident Indian).  The interest earned on NRE accounts is tax free in India. The entire amount –principal and interest in fully repatriable.  The flipside to an NRE account is that it cannot be held jointly with a resident Indian and PIOs (Persons of Indian origin) cannot open an NRE account. Once you become a resident Indian, this account should be closed. NRO Account - Non Resident Ordinary Account The NRO account can also be opened using foreign currency and then maintained in Indian Rupees.  It can also be a current, savings or term deposit account. It can be opened by NRIs and PIOs. The entire amount –principal and interest in fully repatriable but the interest is subject to income tax.  The main advantage of an NRO account is that it can be held jointly with an Indian resident. Once you become a resident Indian, this account should be closed.   FCNR - Foreign Currency Non Resident Account The FCNR account is only for term deposits. It can be maintained in certain designated foreign currencies only.  It can be opened by NRIs or PIOs. It cannot be held jointly with resident Indians. The interest and principal are tax free in India and the entire amount is fully repatriable.  An advantage that the FCNR account has over the other two accounts is that, the account can be maintained till the deposit matures even if the resident status of the person changes from NRI or PIO. Once the maturity is reached, the amount can be transferred from that account to another valid account.   Summary – There are different types of accounts available for Indians earning income abroad- NRE, NRO and FCNR accounts. Depending on requirements, one should choose the most convenient type of account/accounts. For further information contact Prajna Capitalon 94 8300 8300 by leaving a missed call Leave a missed Call on 94 8300 8300 Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com --------------------------------------------- Invest Mutual Funds Online Invest Any Mutual Fund Online Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund Application Forms --------------------------------------------- Best Performing Mutual Funds Largecap Funds Invest Online DSP BlackRock Top 100 Fund ICICI Prudential Focused Blue Chip Fund Franklin India Bluechip ICICI Prudential Top 100 Fund B. Large and Midcap Funds Invest Online ICICI Prudential Dynamic Plan HDFC Top 200 Fund UTI Dividend Yield Fund Birla Sun Life Front Line Equity Fund Franklin India Prima C. 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Protecting your Provident Fund Posted: 24 Mar 2014 04:46 AM PDT Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   The Financial Planners’ Guild, India ( FPGI ) is an association of Practicing Financial Planners to create awareness about Financial Planning among the public, promote professional excellence and ensure high quality practice standards We have come across a number of cases where accumulated Provident (PF) Balance is not in good shape. While there could be many reasons but mostly the problem comes while transferring the PF. It often takes inordinate amount of time and in many cases the transfer just does not happen. The Employee Provident Fund Organization (EPFO, a Government of India organization) is making efforts in the right direction. They are Computerizing in Phases & have already deployed new facilities like E Passbook & Grievance Management System (GMS). Further, with UID Aadhar Card, we may get lucky in the near future, not needing to transfer the balance every time there is a job change. However, what do you do if you currently have an issue with your PF Transfer? Here are some tips: Identify where the transfer is stuck: For PF Transfer, normally below parties are involved: Your new employer The Receiving PF Office (where your new Employer maintains their PF Accounts) The Sending PF Office (where your old Employer maintains their PF Accounts) In some cases, the Receiving and Sending PF Office may be the same. You would have used Form 13 and submitted to your new Employer. Firstly, please ask your new Employer to provide you an acknowledgment of Form 13 submission to the Receiving PF Office. Based on this, you can chase the receiving PF Office and check further with the sending PF office as the case may be. Meeting the PF Officials in person is a good idea though this may not be feasible if this office is not in the same City. Track the status of your transfer request on the EPFO Website Please click here to visit the EPFO Site & track the status of your request. You will have to select the State of the PF Office, select the Regional PF Office where your PF Account is maintained and enter the establishment code & Account number. Please note that in most cases, the extension code field (Second last box from right side) needs to be left blank. Generate the E Passbook for old and new accounts Your E Passbook will give you the exact status if the PF Transfer has taken place or not. Please click here to visit the EPFO website and generate your E Passbook. In one registration, you can have up to 10 PF Accounts with different organization. However, you will not be able to download E Passbook for more than one account with the same organization. If your passbook is not ready, you will have to wait for few days. Recently, we are observing many cases of delays here.  The good part is that they will intimate you via SMS when your passbook is ready for download. Raise & adequately document your Grievance. Please click here to visit the online tool for raising your Grievances with EPFO. If you do not know where your PF Transfer is stuck, then it is recommended that you should raise separate grievances with both the concerned PF Offices (i.e. Sending as well as Receiving). Please carefully preserve the Grievance number.  So far, we have not observed a good track record for Grievance resolution through this online tool. So if you do not see any response or action in couple of weeks after having raised the grievance, it will be a good idea to send a physical letter detailing your grievance and mentioning the Online Grievance Tool Reference number. It is advisable to use speed post for sending such correspondence to the concerned PF Office. You should also keep your both New & Old employer in the loop. Use RTI If you still do not see any action or resolution to your grievance, next step would be to make an application under RTI and send it to the Public Information Officer under the respective PF Office. Along with the application, you will need to send a Postal Order for Rs. 10, favoring the respective Accounts office (e.g. Accounts Officer, EPFO New Delhi). There is no fixed format for application as such. You should briefly and clearly explain the background and query the status of your Grievance. Again, please include reference of your original complaint on EPFO’s Grievance Management Tool and attach copies of earlier correspondence. Normally, you should receive the response within 30 days for an application filed under RTI. In case of no response or unsatisfactory resolution, you could go in for an appeal process under RTI. Please click here to know more about RTI. If you like, you can also escalate your grievance to the Cabinet Minister in charge of Labor Ministry in the Central Government. Your PF may have been maintained at your Company’s PF Trust. In this case, you should simply chase your Old Employer. We normally do not recommend you to withdraw your PF balance. In any case, if you are finding issues with your PF Withdrawal, the steps would be similar. You should check with your Old employer, raise a grievance with the respective PF Office in the Online Tool, formally document the Grievance and finally use RTI. Remember, this is your hard earned money & no one else but you have to protect it. For further information contact Prajna Capitalon 94 8300 8300 by leaving a missed call Leave a missed Call on 94 8300 8300 Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com --------------------------------------------- Invest Mutual Funds Online Invest Any Mutual Fund Online Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund Application Forms --------------------------------------------- Best Performing Mutual Funds Largecap Funds Invest Online DSP BlackRock Top 100 Fund ICICI Prudential Focused Blue Chip Fund Franklin India Bluechip ICICI Prudential Top 100 Fund B. Large and Midcap Funds Invest Online ICICI Prudential Dynamic Plan HDFC Top 200 Fund UTI Dividend Yield Fund Birla Sun Life Front Line Equity Fund Franklin India Prima C. 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Home Insurance Posted: 24 Mar 2014 03:48 AM PDT Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300     We are sure that you realise that despite installing sophisticated alarm systems and having fire extinguishers, your home is at the risk of being damaged, either due to natural calamities or man-made occurrences. A Home Insurance policy, also sometimes known as a Householders Policy is an insurance which will give your house protection against various risks. Types of Home Insurance and optional covers: Home Insurance is basically of two types – (a) Insurance for the Structure and (b) Insurance for the Contents. Some insurance companies differentiate it as damage due to (a) Fire and Allied risks and (b) Burglary and Theft. Irrespective of the categorization, there is little differentiation in the products offered by different insurance companies, and finer details vary, the benefits of which differ from individual to individual. The structure or the building of your house can be damaged due to various reasons, including but not limited to fire, explosion, aircraft damage, lightning, nuclear or missile testing and most importantly - natural calamities such as earthquakes, tsunami, floods, cyclones etc. Similarly, you can lose the contents inside your house due to fire and allied risks or due to burglary, theft and larceny. These contents can be jewellery, valuables, electronic and electrical appliances and equipments, furniture etc. By taking a home insurance for the structure and contents, you can get the value of Sum Insured in case of damage. Many insurance companies like Tata AIG and Future Generali offer additional covers such as public liability cover and personal accident cover which can be opted when you purchase a home insurance. Some companies like ICICI Lombard, Tata AIG and Future Generali also give you compensation towards the amount of rent you will have to bear in an alternative accommodation. Terrorism cover is usually an optional cover, but the policy by Reliance has it in-built in the main policy itself. These additional covers come at a cost, and an additional cover opted for means you will have to shell out more premiums.   How is the amount of cover determined? The Sum Insured of the Structure is usually the reconstruction cost. This is determined by multiplying the area of your house by the prevalent construction cost. The value of land is not considered in this case. Remember that you cannot insure the structure if you are a tenant and do not own the property. In such a case, only the contents can be insured. The Sum Insured for the Contents is based on the market value or replacement cost. Most insurance companies do not ask for submission of documents for this purpose. However, remember that depreciation is deducted from the market value while determining the amount to be insured. Things to remember while buying a Home Insurance: As in the case of any other insurance, it is important to read the fine print and confirm all aspects with the insurer before you sign the dotted line. This becomes more critical in home insurance as each insurer will have different conditions attached to the contents being insured.  Although some insurers do not ask for documentation, make sure that you have documents in place for the structure and contents you are insuring.  Policies generally have a sub-limit on the Sum Insured for different categories of contents and this varies from one company to another. For example, the value of jewellery insured cannot exceed 25% of the total value of contents insured in some policies. Some companies like HDFC Ergo and ICICI Lombard offer policies for more than one year which can save you renewal hassles and possibly some money. But evaluate your need before opting for the tenure.  Almost all companies have non-occupancy clause; ie: they will not settle your claim if the house is unoccupied for a period more than 30 days without intimating the insurer. Find out about this clause and opt for the company which has the longest period. Some policies have a co-payment clause- ie: the insured is required to pay the first 5% of the claim or 1% of the Sum Insured against a particular section. These limits vary from one company to another and can be found by reading the fine print. For example, the policy by Bajaj Allianz has such stipulations. Generally for structural protection, companies reimburse the loss on the basis of reinstatement value. Which Home Insurance policy can be chosen? We have evaluated Home Insurance policies by 6 insurance companies in the country on the basis of various parameters. Policies by HDFC Ergo and Tata AIG can be avoided due to a comparatively high premium. The policy by Bajaj Allianz can also be avoided due to the comparatively low coverage amount available, even though the premium for this policy is the lowest among the comparison set. You can consider policies by Reliance and Future Generali as the premiums for these policies are less expensive and these policies also offer you the essential features. If you do not mind a relatively higher premium, you can consider ICICI Lombard’s home insurance as you have the option of choosing a higher tenure for both own and rented properties. While we have attempted to give you a comprehensive analysis, we advise you to read the individual company prospectus carefully as this product has differences in finer details and the individual requirements may vary from person to person For further information contact Prajna Capitalon 94 8300 8300 by leaving a missed call Leave a missed Call on 94 8300 8300 Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com --------------------------------------------- Invest Mutual Funds Online Invest Any Mutual Fund Online Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund Application Forms --------------------------------------------- Best Performing Mutual Funds Largecap Funds Invest Online DSP BlackRock Top 100 Fund ICICI Prudential Focused Blue Chip Fund Franklin India Bluechip ICICI Prudential Top 100 Fund B. Large and Midcap Funds Invest Online ICICI Prudential Dynamic Plan HDFC Top 200 Fund UTI Dividend Yield Fund Birla Sun Life Front Line Equity Fund Franklin India Prima C. Mid and SmallCap Funds Invest Online Reliance Equity Opportunities Fund DSP BlackRock Small & Midcap Fund Sundaram Select Midcap IDFC Premier Equity Fund Birla Sun Life Dividend Yield Plus SBI Emerging Businesses Fund HDFC Mid-Cap Opportunities Fund ICICI Prudential Discovery Fund D. Small and MicroCap FundsInvest Online DSP BlackRock MicroCap Fund 2.Franklin India Smaller Companies E. Sector Funds Invest Online Reliance Banking Fund Reliance Banking Fund ICICI Prudential Banking and Financial Services Fund F. Tax Saver Mutual Funds Invest Online 1. ICICI Prudential Tax Plan 2. HDFC Taxsaver DSP BlackRock Tax Saver Fund Reliance Tax Saver (ELSS) Fund G. Gold Mutual Funds Invest Online Relaince Gold Savings Fund ICICI Prudential Regular Gold Savings Fund HDFC Gold Fund Birla Sun Life Gold H. International funds Invest Online 1. Birla Sun Life International Equity Plan A 2. DSP BlackRock US Flexible Equity 3. FT India Feeder Franklin US Opportunities 4. ICICI Prudential US Bluechip Equity 5. Motilal Oswal MOSt Shares NASDAQ-100 ETF Invest in Tax Saving Mutual Funds Download Any Application Forms Buy Mutual Funds Online Invest Online Buy Gold Mutual Funds Invest Now

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