PERSONAL FINANCIAL PLANNING

Before making investment plans,one shall make sure  that the following 7 essentials have taken care.

.

1)Adequate life insurance cover: 15*annual expenditure(annual income)+net liabilities

 One shall protect his family against the twists and turns by taking a basic life cover that is equal to15times of one’s annual expenditure+net liabilities

2)Medical cover: Adequate cover according to age & health. 

One shall be prepared for any exigencies by taking adequate medical insurance cover,keeping in mind health &age

3)Adequate cash at home:  1month expense

    Inevitable expenses always walk in uninvited! One shall       tide over these hurdles by always keeping hard cash equal to one month’s home expenses

 4)Adequate balance in savings account: 1months expense

   One shall work through this difficult month by always maintaining one months expense balance in savings account

5)Widley accpected credit card: Anytime 365*24*7

   One shall be prepared for unforeseen situations by having a credit card in hand.

 6)Emergency reserve:6-12months expenses

   One shall be prepared for any eventuality by putting away 6-12months expenses in bank account or openended mutual funds.

 7)Will: One shall ready with it

   Lack of a will could cause confusion for one’s

  Family.One shall be smart by drawing up a will.

Financial News for the day- 01/07/2014

The S&P BSE Sensex gained 13.5% in the quarter ended june-14 to register its highest rise in ninteen quarters.The quarter saw the formation of the new government which enticed heavy FII buying.

 Foreign Institutional investors were net buyers of Rs 36005 Crores as market were in a bullish mode & are now striving for a new information regarding policy announcements for it to scale new heights.

Financial News for the day- 26/06/2014

The Govt announces extension of lower excise duty for another 6 months till 31-12-2014.This is sentimentally positive as prices of products will remain lower by 4-6% & may help in boosting the demand for the auto sector especially in cars & commercial vehicles

RBI's Current efficient Governor & Present Pro-Growth leader Modi. A perfect combination to kill interest rates

Hailed as a troubleshooting "James Bond" of central bankers amid India's currency crisis last year, Raghuram Rajan was given a licence to kill inflation with higher interest rates and drive a programme of monetary policy reforms.

Now, the governor of the Reserve Bank of India (RBI) may need all the suave charm of the fictional British spy to sell that same hard-nosed agenda to a powerful new prime minister who is determined to revive economic growth and create jobs.

Rajan, who calls high inflation a "dangerous disease", won plaudits after he took office in September for arresting a rupee freefall and helping restore investor confidence that had all but evaporated under a lame-duck government led by the Congress party.

This month's decisive election win by the pro-growth Bharatiya Janata Party (BJP) shifts the power dynamics. Now, investors and voters are looking to Prime Minister Narendra Modi to stir India's economy from its prolonged torpor, putting Rajan and Modi on a collision course if inflation stays high.

In his first months on the job, Rajan overcame push-back from within the central bank as well as the finance ministry to shift the benchmark inflation measure from wholesale to consumer prices. The consumer price index (CPI) is the global standard, but in India the higher level of CPI meant Rajan was likely to keep rates tighter for longer.

High interest rates make credit more expensive and create a difficult environment to re-ignite growth.

But if, as many expect under Modi, the investment climate improves and government expenses are managed better, Rajan might get some relief on the inflation front. Investors expect Modi to bring down inflation by cutting subsidies, improving food distribution and promoting investment in infrastructure.

"The Modi-Rajan equation reminds us of that between Volcker and Reagan, where it was a combination of the central banker's inflation-fighting cred and the latter's charismatic image," said Philippe Jauer, chief investment officer at fund manager Amundi Singapore. Paul Volcker was head of the U.S. Federal Reserve when Ronald Reagan was president in the 1980s.

For now, the RBI is expected to leave interest rates on hold at its policy review on Tuesday, but investors will be scouring Rajan's accompanying statement for clues to whether the new government's strong electoral mandate has changed his rate outlook.

Investors expect the next policy move will be a rate cut, but perhaps not before early next year.

TIES AT THE TOP

A professor at the University of Chicago and former chief economist at the International Monetary Fund, Rajan was brought back to India in 2012 to be chief adviser to then-finance minister P. Chidambaram of the Congress party, which meant the two already had a working relationship when Rajan took over at the RBI.

After stunning the markets with a series of bold measures on his first day, he was dubbed variously by the Indian media as "The Guv" and "a rock star banker".

The "Name's Rajan, game's Bond," the Economic Times daily gushed on its front page, with a photo-edited picture of Rajan in an action pose and brandishing James Bond's trademark Beretta pistol, albeit one made of rupee notes.

Rajan, 51, has proven to be a pragmatic - if not swashbuckling - operator at the RBI, pushing to streamline a staid institution, deepen markets, and reform policymaking to control the country's grinding inflation.

Rajan and the new finance minister, Arun Jaitley, 62, a prominent corporate lawyer, held a meeting in New Delhi on Tuesday, but have not previously worked together.

Jaitley is not seen to be as hawkish as Rajan on inflation - a dynamic that is typical between central bankers and governments around the world and often leads to tension.

One senior finance ministry official who worked with Rajan and was part of the team that made a presentation this week to Jaitley said Rajan's initiative to set an inflation target based on CPI could create conflict if, as many expect, CPI rises in coming months.

"Rajan is ... making things difficult for the government by publicly speaking about RBI's stance on the CPI inflation. He would not find it easy to backtrack even if he wants to adjust with the new government," the official said.

The shift would give the central bank a clear price-stability mandate and make fighting inflation its chief objective. Previously, the RBI was charged with promoting growth and financial stability as well as controlling inflation.

FAR FROM DONE

Getting the new government's support for inflation targeting is far from a done deal. Rajan has done what he can to set an informal target by establishing a "glide path" to get CPI inflation down to an annual 6 percent by January 2016 and 4 percent, plus or minus 2 percentage points, a year later.

CPI inflation was at 8.59 percent in April year-on-year after running near or above 10 percent for almost two years through the end of 2013.

"Inflation targeting will require trying to convince the government, and I think it won't necessarily be a bed of roses. But I think it is a right step," said Rajeev Malik, senior economist at CLSA in Singapore.

Inflation targeting and setting up a monetary policy committee - as Rajan proposes - both require legislative changes. Agreeing on the make-up of a committee, including whether the government would appoint members and who they might be, could prove contentious.

Rajan recently softened his tone, noting that inflation targets are for the medium term and are flexible, and that the proposal does not aim to turn the RBI into "inflation nutters".

However, he was uncharacteristically blunt on the subject of RBI independence in other recent remarks.

"I am happy to talk to the government, I am happy to listen to the government, but ultimately the interest rate that is set is set by me," he said at an event in St. Gallen, Switzerland.

"The government can fire me, but the government does not set monetary policy."

On Friday, Rajan struck a measured tone during remarks in Tokyo, which sent Indian bond yields to a four-month low.

"The government and the central bank have both stressed the need to emphasise the need to bring down inflation, while respecting the fact that growth is very weak. You need to ensure through a variety of means we sustain the growth process," he said.

Source:

https://in.finance.yahoo.com/news/rbis-007-rajan-faces-pro-030000361.html

Revenue land purchase- One should take care before purchasing

Lot of people are  interested in investing in a revenue site. It seems to be a lucrative investment, but highly risky, if you invest in one without verifying the documents correctly, you might be landing yourself in a big mess. There is a downside to it and people who want to buy a site in a private layout need to be aware of what they are getting into before investing all their hard earned money into it.

Private layout, Revenue site and a Gramthana site

When a layout does not have its proper approvals under the relevant laws it is an unapproved layout. Sometimes the land may be converted from agricultural to non-agricultural purpose, but the approval of the planning authority may not be there, that is to say that it is an unapproved layout without a sanctioned plan for residential purposes. It is necessary that the layout plan is sanctioned by the appropriate planning authority such as the BDA or the BMRDA. Certain legal requirements under the Land Revenue Act, Land Reforms Act, The Town and Country Planning Act, BDA Act etc., need to be fulfilled for the layout to be an approved one. 

No layout can be formed on land for which notifications are issued for acquisition by the government agencies or if it is grant land belonging to the SC and ST community. Thus, a revenue site is a site that is formed on a land that has not been authorised or converted for residential purpose by the State government. 

A Gramthana site is a site within the village limits that is earmarked for residential purpose. Kanishmari numbers denote these sites. Here even though the site is located in the green belt area it does not require conversion. But it is very rare that genuine Gramthana sites are available today, most of it is carved out on the basis of fabricated documents.

Procedure to form a private layout.

1) According to the Town Planning rules, any person who wants to carve a residential layout in an agricultural piece of land has to approach the DC for the purpose of conversion of the agricultural land from agricultural to non-agricultural/residential purpose. 

2) The DC then verifies if the said land comes under the residential zone as per the Comprehensive development plan (CDP) issued by the State Town Planning authorities. 

3) On collecting the requisite fees, the DC then will issue the conversion order for using the land for residential purpose. 

4) The land owner/developer then has to approach the planning authority with the layout plan drawn by a registered engineer or architect, as per the bye-laws of the planning authority (BDA or the BMRDA, as the case may be).

5) The planning authority concerned will approve the layout and will release a list of site numbers, which can be marketed before completion of developmental works. On satisfactory completion of all development works such as laying roads, providing water, electricity and sewage connections etc., the planning authority will release the remaining sites for sale.

Problems or risks in buying a revenue site in private layouts.

1) Today, the developers are developing layouts without land conversion and without getting layout plans approved by BDA/BMRDA. Many a times it is seen that without even being empowered, such layouts have been approved by Village Panchayaths/CMCs, with layout plans, thereby permitting narrow roads and no other basic amenities being provided.

2) There are many layouts formed with fabricated conversion orders.

3) The layouts have been sold on paper even in ‘green belt' areas (area reserved for no development), land reserved for commercial/industrial purpose, land on tank bunds (which actually are owned by the government) and even the land notified for acquisition by government agencies. 

4) The purchase of such a site will not confer a good title on its owner. A village panchayat secretary, president or administrator,  is neither empowered to sanction a layout plan nor a building plan. No building can be constructed on agricultural land without obtaining the conversion order, layout plan and building sanction plan. 

5)You will also be liable to pay various statutory fees and levies which have not been paid by the developer. Unauthorised layouts are often without basic amenities and do not conform to Town planning requirements. They may lack proper roads and open spaces which should be about 50% of the total area, as stipulated by the law. These layouts will prove to be inconvenient in the long run and have little resale value.

6) If you buy a site in an unapproved layout you could face problems with regard to Khatha transfers, plan sanction etc., The construction carried out by you can also be demolished and no action can be taken against the planning authority in such a case.

Note:

Residential layouts can be formed only in lands converted for residential purpose. Such land should be in the residential zone as per the zonal regulations. It should be approved by the concerned authorities. A sanctioned plan will have a seal, date of sanction and signature of the authority granting the sanction, together with a certificate issued to that effect by the authority which approved the plan.

If you are planning to buy a site in and around Bangalore, select a layout which is either approved by BDA or BMRDA and select the site with a particular number approved for sale, as mentioned in the letter issued by BDA/BMRDA. Collect the copies of all the property documents and various approvals obtained by the developer and engage an advocate to verify the title to the property.

Authorities that approve layouts.

1) The Bangalore Development Authority (BDA) is the sole planning authority for approving layouts under its jurisdiction consisting of areas falling under erstwhile BMP (Bangalore Mahanagara Palike), seven CMCs (City Municipal Councils), one TMC (Town Municipal Council) and specified villages surrounded by CMCs. 

2) BMRDA (Bangalore Metropolitan Region Development Authority) has the authority to approve layouts outside the BDA areas and the jurisdiction extends up to 50 km (approximately) from Vidhana Soudha, as per the BMRDA Act, 1991, that is to say Bangalore Urban and Rural Districts and Malur Taluk of Kolar District excluding the areas covered by BDA, BIAAPA and other LPA's.

3) The Bangalore International Airport Area Planning Authority (BIAAPA) - for its local planning area which includes the area of the airport and its environs. 

4) The Ramanagaram - Channapatna Urban Development Authority (RCUDA) - for Ramanagaram - Channapatna local planning area.

5) Nelamangala Local Planning Authority - For Nelamangala Town & its environs.

6) Magadi Local Planning Authority - For Magadi Town & its environs.

7) Kanakapura Local Planning Authority - LPA of Kanakapura.

8) Anekal Local Planning Authority - LPA of Anekal. 

9) Bangalore Mysore Infrastructure Corridor Area Planning Authority(BMICAPA).

Documents to be verified before buying a revenue site.

A. Conversion order from DC.

B. Receipt for paid conversion amount.

C. RTC for 30 years.

D. Documents of ownership.

E. MR extract.

F. Akarbhandh/ Tippani/ Pod extract/ Survey sketch.

G. Tax paid receipt.

H. Boundary map.

I. Village map.

J. Nil tenancy certificate.

K. Approved layout plan.

L. Khatha certificate issued by relevant authority.

M. Encumbrance certificate in Form 15 and 16 for 42 years.

N. Zonal regulation map.

O. Power of attorney (if any).

P. No acquisition proceeding evidence.

As a precaution it is better to give a public notice about the purchase in the newspaper. 

Beware before buying BDA plots in auction. Only Corner & Commercial sites can be auctioned

For over a year now, the Bangalore Development Authority has been placing advertisements in newspapers announcing the public auction of corner as well as intermediary plots. Even as BDA officials hailed the initiative as a solution to the agency’s revenue crunch, several rights groups including the Arkavathy Layout Allottees Association have accused the BDA of running a real estate business.

However, an April 2009 High Court order dug out by an activist shows that the auction of intermediary plots is not just a controversial policy issue but also rank illegal.

Addressing a press conference here on Sunday, RTI activist B.M. Shivkumar produced a copy of an April 24, 2009 division bench order which clearly states that only residential corner and commercial plots can be auctioned.

Para 19 of the order states that “as per provisions of the BDA (disposal of corner sites and commercial sites) Rules 1984 corner sites are required to be disposed of only by public auction”.

However, in respect of other residential or intermediary plots, the order quotes the same 1984 rules to state, “intermediary sites are required to be offered for allotment to eligible persons as per Rule-3. These intermediary sites cannot be disposed of by public auction.” Further the order states that non-corner, residential plots are to be allotted to eligible applicants.

Brandishing a clutch of advertisements issued by the BDA announcing the auction of intermediary plots, Mr. Shivkumar said, “This auction is completely illegal. It is in violation of a High Court order that is based on the 1984 rules notified by the government.”

He also said that those who purchase these plots in the auction might be running a huge risk. “Anybody can challenge these purchases in court. Those buying plots in auctions should be careful as the court might annul the transaction,” he said.

Criticising the BDA, he said that there are lakhs of people waiting for plot allotments in the city. “Instead of giving them allotments that are due for as many as 30 years [in some cases], they are running this money making racket,” he said.

Source: http://www.thehindu.com/news/cities/bangalore/beware-of-buying-bda-plots-in-an-auction/article5012957.ece

UK based Indian pension investors (expats) can consider QROPS schemes in India & OFF Shore for better tax advantages on their UK pension savings

Expats including India based UK expats should know that they can no longer depends on the financial favors from UK Government anymore irrespective of whether they are in or out of the UK tax system. It looks UK Government is making clear on this part to UK expats.

For the information of UK expats there would be a consultation to consider scrapping the personal income tax allowance for expats.

When it comes to a question that who receives the allowance, it totally depends on the definition of an expat. From the tax point of view, an expat is no longer a UK resident & the member settles in another country & pay taxes there itself. Even though it does looks like UK Govt has liberated pensions, they are still decided  to collect for Treasury.

So switching one’s  Onshore pensions to an OFF Shore QROPS is the solution to get out of this tax trap.

On switching Onshore pensions to a OFF Shore QROPS like switching to a jurisdictions like India, Gibraltar, Malta etc., the member pays income tax on the pension payments in the country where he is tax resident , not at UK tax rates. The tax rates vary considerably from country to country.

For example, on transferring to a Gibraltar based QROPS the investor ends up paying just 2.5% income tax on pension income & also can withdraw 30% tax free lump sum on attaining age 55 .

Also, QROPS pension benefits can be taken in terms of any major currencies & not just in GBP ,that can be credited into member’s personal bank account directly. So that there is no foreign exchange worries.

Most of the QROPS providers do accept small UK pension pots also that are less than 75000 GBP. This will help many expat pension investors, those who got an average pension pot of 38,000 GBP.

About 80% of the Indian expatriate's have savings in an existing UK pension fund but are considering retiring in India and few percentage of them in other countries outside UK.

 The QROPS program was launched on 6 April 2006 as a part of new legislation with the objective of simplifying pensions. Typically this occurs when a Indian UK resident leaves the UK to permanently emigrate (or to retire abroad) having built up a pension fund within a scheme approved by HMRC or when a person born in India who has built up benefits in a HMRC approved UK Pension Scheme decides to return to his home country or  abroad with an expectation of retiring there.

Please contact me for an informal chat about the transfer scheme, finding right QROPS scheme in India and in OFF Shore jurisdiction to get your UK pensions transferred and Retirement planning with my following Contact details.

Mr Ravi Kumar. Financial Consultant.  Exide Life Insurance Co Ltd (formerly known as ING Life Insurance Co Ltd)

28, 6^th Floor, Centenary Building,  Adjacent to Raheja Towers, M.G Road, Bangalore-560 001.       

Cell: +91 9980927393,  +91 9844519872

Email:  ravi.sampige@gmail.com

Now transfer your Ireland pension fund to ‘Exide Life Golden Years Retirement Plan’ in India & watch it grow.

Any Indian who has contributed to pension fund in Ireland and has either moved or is planning to relocate to India can now transfer his/her Ireland pension fund to ‘Exide Life Golden Years Retirement Plan’ of Exide  Life Insurance Company Ltd in India.

Ø  Only Non-active pension funds can be transferred

Ø  Ideally suited for Indians who are returning to India for a long term.  

4 reasons why one should look at transferring their Ireland pensions :

a)      Receive pension & other benefits in Indian rupees

b)      Withdraw upto 33% of your pension fund in India at the time of vesting.

c)       Benefit from better appreciation opportunity presented by the Indian market

d)      Leave behind the unused pension funds for your beneficiary without any tax liability

                                Tax advantages & Flexibility

a)      Tax free commutation upto 1/3^rd of your fund value*

b)      Further contributions enjoy tax benefits u/sec 80C*

Benefit from a Growing Indian economy

In economies like Ireland/UK expected annual returns are in the range of 2 – 4%. Whereas India offers better earning opportunity than the Ireland market may offer. For example, the deposit-term deposit rate in India is above 9%.

Benefits from the experience in Managing the assets from Exide Life

Ø   Exide Life Insurance is an established player serving over 1 million customers in India for 12 years

Ø  The company has demonstrated a good track record in managing retirement & pension products

Ø  Has delivered consistent returns by declaring an average bonus of 8.54% & 9.62% over last 8 & 4 years respectively

Ø  Experience in managing a retirement corpus of INR 1000 cr. under its  erstwhile pension scheme ‘Exide New Best Years’

Other key benefits to customers

a)      The product offers the Guarantee of investment amount and the returns declared theron

b)      A minimum of 40% of the investments is done in Govt securities & AAA rated funds , to ensure the safety net to the retirement corpus from any kind of market swings

c)       Flexibility in terms of choosing the vesting age & also the premium payment terms

Summary

This pension scheme in India presents you a unique opportunity where you can save 100% of your pension contributions made in Ireland

The Indian economic growth provides an opportunity to improve returns on investments in comparison to Ireland

Exide Life Golden Years provides the best of Capital Guarantee, flexibility & tax benefits to you.

To know in detail about the benefits or amount of pensionable service the transfer value payment of Ireland pension pot will buy in the receiving pension scheme in India & also To know more about the options, pension schemes available in India to get your Ireland pensions transferred, I wish to schedule a free, no obligation telephone consultation to discuss ways I can help yourself and any of your colleagues who has accumulated pension fund in Ireland. I can also be reached with the following contact details.

Mr Ravi Kumar. Financial Consultant (Code: 60272381), Exide Life Insurance Co Ltd. Branch- B 21, # 28, 6th floor, Centenary building, M.G Road, Bangalore-560 001.

Cell:     +919844519872, +919980927393
Email:  ravi.sampige@gmail.com

Ireland Pensions transfer to Non-EU countrie’s International pension schemes-Pension Portability option to India.

Any Indian/PIO/OCI/NRI working in Ireland should know that portability of  pensions are a extremely complex area and before leaving Ireland the Member should sought expert advice on transferring his/her Ireland pensions to India or to any other jurisdictions of his/her choice. In case, the Member is planning to leave Ireland for short period of time, then the Member should look at tax impacts if the Member wishes to continue to contribute to Irish pension account while being in Overseas & also the tax implication on the returns earned by the Irish pension scheme whilst Member is in Overseas.

The protection riders like social security and any other extra benefits or amount of pensionable service the transfer value payment of Ireland pension pot will buy in the receiving pension scheme in other countries will depend on the overseas country.

In case, if an India based Ireland resident moving to the countries that are covered by EU & EEA regulations, it is treated in the similar way as the country’s own residents. In such a scenario then the Member has to fill prescribed forms like E104 etc., that will give the details of social security details to avail benefits claim.

The pension board is obligated to oversee occupational pensions and PRSAs when it comes to transferring pensions to overseas scheme. There are few important requirements under the provisions of ‘The Occupational Pension Schemes & Personal Retirement Savings Accounts (Overseas Transfer Payments) Regulations to be adhered to before to an Overseas transfer being made under the provisions of Pensions Acts. The following are the important requirements to be adhered to:

a)       The trustees or PRSA provider are required to obtain written confirmation from the trustees, custodians, managers or administrators of the overseas arrangement, to which the transfer is to be made, to the effect that the overseas arrangement provides "relevant benefits" within the meaning of  relevant provisions of Taxes Consolidation Act.

b)      The trustees or PRSA provider must be satisfied that the overseas arrangement is approved by an appropriate regulatory authority for the country concerned.

c)      The trustees or PRSA provider of the Irish arrangement must obtain from the member of the arrangement or the PRSA contributor wishing to make the transfer such information as may be approved by the Pensions Board.

India based Ireland expats can make the most by transferring their Ireland pensions to an IRDA recognized pension scheme in India. Many India based Ireland expats like Doctors, engineers & other highly qualified professionals working in Ireland & have contributed & still have been contributing to Personal Retirement Savings Account (PRSA) in Ireland.

To know in detail about the benefits or amount of pensionable service the transfer value payment of Ireland pension pot will buy in the receiving pension scheme in India & also To know more about the options, pension schemes available in India to get your Ireland pensions transferred, I wish to schedule a free, no obligation telephone consultation to discuss ways I can help yourself and any of your colleagues who has accumulated pension fund in Ireland. I can also be reached with the following contact details.

Mr Ravi Kumar. Financial Consultant (Code: 60272381), Exide Life Insurance Co Ltd. Branch- B 21, # 28, 6th floor, Centenary building, M.G Road, Bangalore-560 001.

Cell:     +919844519872, +919980927393
Email:  ravi.sampige@gmail.com

Qualifying Recognised Overseas Pension Scheme.(QROPS): India based Ireland expats can avail tax advantage...

Qualifying Recognised Overseas Pension Scheme.(QROPS): India based Ireland expats can avail tax advantage...: India based Ireland expats can make the most by transferring their Ireland pensions to an IRDA recognized pension scheme in India. Many In...

India based Ireland expats can avail tax advantages by transferring Ireland Pensions to India based Pension schemes

India based Ireland expats can make the most by transferring their Ireland pensions to an IRDA recognized pension scheme in India. Many India based Ireland expats like Doctors, engineers & other highly qualified professionals working in Ireland & have contributed & still have been contributing to Personal Retirement Savings Account (PRSA) in Ireland.

One of the major advantages in transferring the Ireland pensions to a Recognised pension scheme in India is a tax advantage that member enjoys in India. The pension benefits in Ireland are generally subject to many kinds of Iresh taxes like:

Ø  Capital Acquisition tax (CAT)

Ø  Iresh Income  tax

Ø  Universal social charge (USC)

Ø  Pension levy etc

Taxing rate of pension benefits in Ireland differs on different phases & options like, the drawdown phase, accumulation phase etc. Under drawdown phase, there are two options:  pension lumpsum option and Annuity option etc.

For instance, under Annuity option, the income from Annuities is liable to Income tax & Universal Social Charge(USC). Similarly, the taxing rate is different if the pension Member dies before drawing down PRSA benefits.

For one’s information, the rate of Iresh CAT(capital acquisition tax) is currently 33%. Under pension lumpsum option in the drawdown phase, any amount above 575000 Euro’s will be subject to Iresh income tax & universal Social Charge (USC) of upto 48%. The marginal rate of income iresh income tax  is currently 20%.

Insurance & pension industry has open up for private players from the year 2000 in India. Now apart from LIC of India, there are currently more than 25 insurers providing different kinds of pension & insurance schemes to suit the client’s requirements. Mainly following are the kinds of pension schemes available,

1)      Immediate annuity scheme

2)      Deferred annuity scheme

3)      Unit linked pension scheme etc

Immediate annuity schemes are the most popular pension scheme in which the member will start receiving pension income as soon as his Ireland pensions transferred to an Immediate annuity scheme in India. The member will receive annuities till he/she is alive & on member’s demise the entire transferred Ireland pension corpus will be passed on to the member’s nominee as a tax free lumpsum.

In the deferred annuity schemes, the member can leave the transferred Ireland pensions to grow tax free till he/she attains retirement age (45-55 years). In India, the growth rate has not been less than 9% since last 8 years. On attaining the retirement age, the member can withdraw 33% of the total grown corpus as a tax free lumpsum & on remaining 67% (2/3^rd)  the member will start taking pension income till his/her life time. On member’s demise, the entire 2/3^rd  Corpus will be passed on to pension member’s  nominee as a tax free lumpsum.

Once Ireland pensions transferred to a pension scheme in India, the member is not liable to pay Ireland taxes like,

Ø  Capital Acquisition tax (CAT)

Ø  Iresh Income  tax

Ø  Universal social charge

Ø  Pension levy etc.,

To know more about the options, pension schemes available in India to get your Ireland pensions transferred, I wish to schedule a free, no obligation telephone consultation to discuss ways I can help yourself and any of your colleagues who has accumulated pension fund in Ireland. I can also be reached with the following contact details.

Mr Ravi Kumar. Financial Consultant (Code: 60272381), Exide Life Insurance Co Ltd. Branch- B 21, # 28, 6th floor, Centenary building, M.G Road, Bangalore-560 001.

Cell:     +919844519872, +919980927393
Email:  ravi.sampige@gmail.com

Tax ruling boost's transferring UK/NHS pensions to a QROPS in India

In a recent ruling by Honorable high court of Delhi states that employee contributions to overseas pensions were not taxable, provided that the employee is not receiving any benefit currently out of the scheme. The relief applies for the savings made for future retirement.

This can be termed as bonus for expats with QROPS living or working in India . This historic case  between Yoshio Kubo and others against the Commissioner of Income-Tax, resulted in giving clarifications for other tax issues for expats in India.

For example, apart from pension decision including QROPS, the following other rulings also included:

Ø  There should be no tax on employer contributions to overseas social security or private medical insurance

Ø  Tax paid by the employer on rent free accommodation is excluded while working out the value of the

Ø  There should be no tax for Hypothetical tax withheld from expat salaries

Ø  Refunds of tax deducted at source should not be taxed

Ø  paying for expat tax returns by employer is not taxed

It was the issue before the court was whether tax borne by employers for expat employees was a non-monetary perquisite – a benefit that should be taxed – and whether employer contributions to overseas social security was taxable

The ruling of the honorable court is termed as historic & landmarking one in the tax law of India. This ruling has a bearing on expat workers and their employer’s wide range of tax issues in India.

“The judgment confirmed the rules that should be applied on three main issues, namely grossing up benefits, taxing employer contributions to offshore social security and hypothetical tax”

The honorable court also digged at other expats pay issues and gave clear rulings on how benefits are taxed in India. This is a favorable move for expat’s in India since India is one of the largest expat destinations in whole Asia.

This landmark ruling aid’s many british expat workers retirement planning in India as they are not liable to pay taxes on any further contributions into their overseas pension funds(QROPS schemes).

No doubt, this also boosts attracting top talents, high skilled expats to the country helping this fast growing economy to grow further fast.

Please contact me for an informal chat about the transfer scheme, finding right QROPS scheme in India to get your UK pensions transferred and Retirement planning with my following Contact details.

Mr Ravi Kumar. Financial Consultant.  Exide Life Insurance Co Ltd

28, 6^th Floor, Centenary Building,  Adjacent to Raheja Towers, M.G Road, Bangalore-560 001.       

Cell: +91 9980927393,  +91 9844519872

Email:  ravi.sampige@gmail.com