Skip to main content

RFC account

RFC account

 

Resident foreign currency account can be used by resident Indians and NRIs who have permanently settled in India after staying overseas for at least one year to maintain foreign currency deposits.


The decision to return requires planning, especially the finances and Resident Foreign Currency (RFC) Account is an ideal vehicle for NRIs' to park their funds in foreign currency in India and avail off its advantages once they actually return to the country. In the following sections we dwell on the attributes which are specific to the account in the context of NRIs' returning to the country. Opening an RFC Account: Who is eligible?The following sets of people are eligible to open an RFC account:ü Any resident Indian can open an RFC account in any freely convertible foreign currencyü NRIs' who have stayed abroad for a continuous period of 1 year or more and have returned to IndiaAuthorized dealers and banks provide assistance in the opening of an RFC account. Existing FCNR or NRE accounts can be converted to RFC account as per the discretion of the account holder. In which foreign currencies can RFC account be maintained?As already stated, RFC account can be opened in any freely convertible foreign currency. Currencies like AUD, CAD, Euro, GBP, JPY, USD, etc qualify for an RFC account. What kind of interest rates can be expected out of an RFC account? RFC accounts can be maintained in the form of:>> Term Deposits>> Current Accounts>> Savings Accounts Interest rates, per se, vary on term and currency. As a benchmark case, at present, an RFC term deposit account maintained for 1 year or more in US dollar carries an interest rate of 2.5% to 3.0 %. What are the tax implications for interest credited in RFC Account?The interest credited on a quarterly basis in the RFC account balance is taxable. However, if the status of the account holder is that of a Resident and he or she does not qualify as an Ordinary Resident then he is exempt from tax payment for the interest earned on the RFC account. What kind of funds can be deposited in the RFC account?The sources of Funds which can be deposited in an RFC account are specified below:>> Funds kept in foreign bank account in foreign currency, which has been earned through the conduct of some business or by way of employment abroad.>> Any money in the form of Superannuation, pension etc. received by a NRI from a foreign employer.>> Foreign exchange received on account of sale of assets including shares, bank account, immovable property and investments held by the individual outside India.>> Any income earned from assets held abroad such as interest income and dividend .>> On attaining the status of a resident Indian, funds from FCNR or NRE account can be deposited in the RFC account and in such cases no penalty is levied on the premature withdrawal of FCNR or NRE account.>> Foreign currency notes of different denominations brought from a foreign nation. In cases where the valuation of such foreign currency notes exceeds $5000 or the total value of notes and Travelerscheque is over $10,000,a Currency Declaration Form (CDF) has to be submitted to the customs authorities. The form has to be produced at the bank for endorsement at the time of account opening or depositing money into the RFC account. For what purpose RFC account balance can be used?The balance maintained in an RFC account can be utilized for making investments or for remitting money abroad. RFC account balance can also be used for making payments and investments in India.
---------------------------------------------
Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015

You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds

1. ICICI Prudential Tax Plan

2. Reliance Tax Saver (ELSS) Fund

3. HDFC TaxSaver

4. DSP BlackRock Tax Saver Fund

5. Religare Tax Plan

6. Franklin India TaxShield

7. Canara Robeco Equity Tax Saver

8. IDFC Tax Advantage (ELSS) Fund

9. Axis Tax Saver Fund

10. BNP Paribas Long Term Equity Fund

Invest in Tax Saver Mutual Funds Online -

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

---------------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

---------------------------------------------

Invest Mutual Funds Online

Invest Any Mutual Fund Online

Download Mutual Fund Application Forms from all AMCs

Download Mutual Any Fund Application Forms

Popular posts from this blog

Rs 14,000 Crore worth of tax free bonds coming soon from NHAI , PFC

  NHAI, PFC file prospectuses, coupon rate not yet decided MORE debt investment options have opened up for investors with AAA rated tax-free bonds worth over Rs 14,000 crore lined up. The National Highway Authority of India ( NHAI ) and Power Finance Corporation ( PFC ) are offering Rs 10,000 crore and Rs 4,033.13 crore worth of tax-free bonds, respectively, as per prospectuses filed with the Securities and Exchange Board of India (Sebi). Of a Rs 5,000 crore issue by PFC, Rs 966.87 crore has already been raised through private placement on September 28 and November 1. Tax-free bonds give investors tax-free return on any amount invested. In another kind of bonds, the long-term infrastructure bonds, investments up to Rs 20,000 are tax exempt, that is this cap amount can be deducted from the taxable income. Accordingly, the NHAI prospectus has clarified that only the amount of interest from -and not the actual investment on -its new bonds will be tax-free. "NHAI's publ...
Read more

Change in Fund Manager for some of HSBC Mutual Fund Schemes

Buy Gold Mutual Funds Invest Mutual Funds Online Download Mutual Fund Application Forms Call 0 94 8300 8300 (India) However, this facility is only available to Unit holders who have been assigned a folio number by the AMC.   HSBC Mutual Fund has announced that the below mentioned schemes shall be managed by the new fund managers as stated in the table. The effective date will be July 02, 2012.   Amaresh Mishra 's will be Vice President and Assistant Fund Manager. Having done a Post graduate diploma in Business Management and Bachelor of Chemical Engineering, he has over seven years of experience in Equities and Sales.   Mr. Piyush Harlalka's designation shall be Vice President- Fixed Income. Qualified as a C.A., C.S. and holding M.B.A.( Finance degree), he has over six years of experience in Fund management and ...
Read more

How EEE and EET Tax affect Retirement Investments

  An important factor while choosing a financial product is its taxation , and for retirement savings, this is even more important as the sums involved are usually life-long savings. Here's a look at the current tax treatment of three major long-term retirement planning products, which are - Employees' Provident Fund (EPF), Public Provident Fund (PPF) and National Pension System (NPS). EPF The tax treatment is EEE, which means your money is exempt from taxes at the time of investment, accumulation and withdrawal. At the time of investment, the tax deduction is under the limit of section 80C of the Income-tax Act , which is currently Rs 1.5 lakh. Partial withdrawals are also tax-free if made after 5 years of continuous service. If withdrawals are made before 5 years of service, 10% tax will be deducted at source. Exceptions have also been provided for transfer of amount and conditions wherein the subscriber is unemployed for more than 2 months or the loss of job was beyond th...
Read more

Personal Finance: You can insure your wedding

But luck may not always be on your side. With the frequency of such attacks, as also other risks and unforeseen accidents growing, a wedding insurance is something you may want to look at if a marriage is being planned in the family. Event insurance plans like this is still in its nascent stages due to low awareness. And given the sacred nature of the ritual, nobody wants to discuss or think negative. But as wedding spends and risks grow, it makes sense to cover the potential monetary loss. The policy in those countries even covers the loss of the wedding ring, the wedding gown not reaching on time and even the expenses/loss due to late or non-appearance of the photographer which may mean staging the event once again for the photograph. In India, most insurance companies — including ICICI Lombard General Insurance, Oriental Insurance, Bajaj Allianz and National Insurance — offer wedding insurance. The policy is tailor made to individual requirements and needs. The sum insur...
Read more

DSP BlackRock MidCap Fund

Best SIP Funds Online   HOW HAS DSP BlackRock Small & Mid Cap Fund PERFORMED? With a 10-year return of 14.61%, the fund has outperformed both the category average (12.34%) and the benchmark (10%) by a good margin. Should you invest in DSP BlackRock Small & Mid Cap Fund? This fund invests predominantly in mid-cap stocks but takes a sizeable exposure in small-caps as well. The focus is on nascent companies with high growth potential. The fund manager places emphasis on quality and avoids inferior businesses even if these look tempting from a valuation perspective. Over the past year, the fund portfolio has grown, having added to some of the underperforming sectors like chemicals and healthcare. Its portfolio churn has come down significantly. The heavily diversified portfolio is run completely agnostic of its benchmark index— most bets are from outside the index—which can at times lead to bouts of underperformance as seen in the recent years....
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now