raghavan@wanginst.UUCP (Sri Raghavan) (08/12/85)
Being a newcomer to this net, I am not sure of the protocols to be followed here. I guess this net is a forum for discussing things about India, rather than a media for people of Indian origin to exchange ideas on topics of common interest and relevance. Old timers can probably clarify these things. Assuming that topics of later kind are permissible, I would like to start a discussion on the topic of "Returning Home". It is my observation that most of us dream of returning back to India some day. "That some day" would never come unless we actively plan for it. A prerequisite for making a sound plan is to acquire a good grasp of the underlying issues and their implications. Since there are all kinds of issues, I would like to confine our initial discussion to "Financial" aspects. I have a series of starter questions which may help readers to articulate their thoughts. As the discussion progresses, I am sure, lot more related questions would get added to this list. 1. Moving household to India. 2. Moving our savings out of U.S.A - applicable U.S. laws. Sale of home etc. Tax implications of leaving U.S.A. 3. Moving savings into India - applicable Indian laws. Dealing with the Indian tax laws Understanding and taking advantage of investment incentives Strategies: doing it over years, or taking care of it while returning. 4. Dealing with U.S. Life Insurance Dealing with IRA investments Social Security Implications. 5. Leaving money behind for whatever reasons. 6. Minimizing the cost of returning back, if things do not work well back at home. Finally a few remarks. I am raising these questions, because I do not have any answers for these, and I have been unable to find anybody who can answer them. These questions seem to keep coming back, every time I think about "Returning Home". I would request readers not to raise the issue of whether it is worth returning home. For now, let us assume that it is worth returning home, and try to develop a better understanding of the issues involved. May be, with a better understanding of the issues, each of us can answer for ourselves whether it is worthwhile. Thanking you in advance, Sridhar. -- |---------------------------------------------------------------------------| | Sridhar A. Raghavan | | Wang Institute, UUCP : ...!decvax!wanginst!raghavan | | Tyngsboro, MA, CSNET: raghavan%wanginst@CSNet-Relay | | 01879. 617-649-9731 | |---------------------------------------------------------------------------|
sivan@aero.ARPA (Sivan Mahadevan ) (08/15/85)
I dont have usenet access, so my friend Sivan Mahadevan is
posting this on net.nlang.india. You can get me on arpanet however, by sending
to: Ananth_annapragada%ub-mts%umich-mts.mailnet@mit-multics.arpa
Would appreciate any updates on this which the net can cough up.......
About the only thing I know anything about from among the points Sridhar raised
is with reference to taxes: As an employee of a company in the US, and as a
resident or citizen of the USA, all your taxes are payable in the USA and
nowhere else. i.e., as a resident of the USA returning to India, your savings
which you take into India as dollars to be converted to rupees are totally tax
free as far as the Indian Govt. is concerned. There **is** a technicality
however, once you settle in India, and deposit your converted dollars as rupees
in a bank or as investments somewhere, I believe you become liable to some kind
of "Wealth Tax", but then I believe this is payable by anyone in India with a
personal worth higher than a threshold. By the same token, any money sent home
from here, while you are still here, is totally tax free. By working in
installments you can get out of the threshold I was talking about earlier.
Apart from these heuristics, the Indian govt. also needs foriegn exchange, and
will be happy to let you convert your hard earned savings into rupees without
taxing you to boot....!
Re the thought of moving your household back to India, under
the "returning resident" and "returning technocrats" plans established by the
Indian Govt. (Actually, Indira Gandhi), any equipment you may deem necessary
for your continuing your work in India may be brought back no_questions_asked.
For example, a dentist can take his special adjustable chair etc. Any personal
items you have used for two years go through similarly. This includes cars,
tv's, vcr's, stereos etc. etc. NOTE: I am basing these remarks on what my
friend (a dentist) did a year back. While regulations may have changed since, I
am not aware of them.
Bye for now.......
_Ananthjalote@uiucdcsb.Uiuc.ARPA (08/21/85)
I think a discussion like this will be very useful, for all interested people. I myself have though about many of these issues, without getting many answers. It occurs to me that maybe we should contact someone in the Indian Embassy, and they should have many of the laws. I am going to explore this. ONe thing I know. YOu can keep your dollars abroad, provided you declare them. Have to check about what happens to the interest earned. If it can only be taxed in the US, then there is a good reason to keep it here, besides the fact that you keep your foreign exchange intact. If you are earning in India, the interest here would be become tax free (unless you earn a lot), and you will not have to pay taxes in India, which you would if you earned the interest in India. This could be substancial, I think.