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

Birla SunLife Manufacturing Equity Fund

The Make in India program was launched by Prime Minister Naredra Modi in September 2014 as part of a wider set of nation-building initiatives. It was devised to transform India into a global design and manufacturing hub. The primary motive of the campaign is to encourage multinational as well domestic companies to manufacture their products in India. This would create more job opportunities, bring high-quality standards and attract capital along with technological investment to bring more foreign direct investment (FDI) in the country.   Why India as the next manufacturing destination?   The rising demand in India along with the multinational's desire to diversify their production to include low-cost plants in countries other than China, can help India's manufacturing sector to grow and create millions of jobs. In the words of our Honourable Prime Minister- Mr. Narendra Modi, India offers the 3 'Ds' for business to thrive— democracy,...
Read more

Total Returns Index brings out real Equity Funds Performers

From February, equity mutual funds have to change their benchmarks to account for dividend payments. Until now, funds used price-based benchmarks alone. TRI or total return indices assume that dividend payouts are reinvested back into the index. What this does is lift the overall index returns, because dividends get compounded. For example, the Sensex TRI index will consider dividend payouts of its constituent companies while the Nifty50 TRI index will consider dividends of its constituents. Using TRI indices as benchmarks comes on the argument that an equity funds earn dividends on the stocks in its portfolio, which they use to buy more stocks. Therefore, using an index that also considers dividend reinvestment would be a more appropriate benchmark. Shrinking outperformance With a stiffer benchmark, it is obvious that the margin by which an equity fund outperforms the benchmark would shrink. Rolling one-year returns from 2013 onwards, the average margin by which largecap funds out...
Read more

Stock Review: Havells

HAVELLS India's stock performance has been muted in the past three months, in line with the weak broader market. But, given the turnaround in its overseas subsidiary and the launch of new products in its consumer durable business, the company's stock may undergo a re-rating.    Havells is India's leading consumer electrical goods company, with consolidated sales of . 5,527 crore in the past four quarters. Its wholly-owned subsidiary Sylvania, which makes lighting and fixtures, has established brands in European, Latin American and Asian markets. Sylvania repre sented nearly half of the company's consolidated revenues in the first half of FY11.    Sylvania's poor financials hit Havells' consolidated performance in FY10. But, this has changed in the cur rent fiscal. Havells has reduced fixed costs of Sylvania by exiting from unprofitable businesses and outsourcing manufacturing to low-cost locations such as India and China. In the September 2010 quarter, Sylv...
Read more

How to generate a UAN Online

Best SIP Funds Online   In order to make Employees' Provident Fund (EPF) accounts portable, the Employees' Provident Fund Organisation (EPFO) had launched the facility of Universal Account Number (UAN ) in 2014. Having a UAN is now mandatory if you have an EPF account and are contributing to it. So far, you got this number from your employer and every time you changed jobs, you had to furnish this number to the new employer.  However, in order to make it easier for you to get a UAN , and without your employer's intervention, the EPFO now allows you to go online and generate a UAN on your own. This facility can be used by freshers, or new employees, who are joining the workforce as well as by employees who have older EPF accounts but do not have a UAN as yet. As a new employee, you can simply generate a UAN and provide the number to your employer at the time of joining, when you need to fill up forms for your EPF contribution. As per a circula...
Read more

Mutual Fund Review: Reliance Regular Savings Equity

    Despite high churn, Reliance Regular Savings Equity has managed to fetch good returns   In its short history, this one has made its mark. Though its annual and trailing returns are amazing, the fund started off on a lousy note (last two quarters of 2005). It managed to impress in 2006 and was turning out to be pretty average in 2007, till Omprakash Kuckian took over in November 2007 and wasted no time in changing the complexion of the portfolio. Exposure to Construction shot up to 28 per cent with almost 21 per cent cornered by Pratibha Industries and Madhucon Projects . Exposure to Engineering was yanked up (18.50%) while Financial Services lost its prime slot (dropped to 6.69%) and Auto was dumped. That quarter (December 2007), he delivered 54.66 per cent (category average: 25.70%).   When the market collapsed in 2008, thankfully the fund did not plummet abysmally. But even its high cash allocations could not cushion the fall which hovered around the category average. ...
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