Loans are nothing less than blessings for people who need urgent money or are facing some downtime. In simple words, bank loans like personal loan are an excellent tool to meet the expenses for a person who has no other means of financing.
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At HSBC, we understand that buying a home is a long-term financial commitment. Smart Home is a simple way to use your savings smartly, by letting you decide how much interest to pay. Repay your loan sooner. Smart Home offers competitive home loan interest rates and more. Smart Home Features & Benefits: Save up to 50% on interest payments With every Smart Home, you get a current account. All you need to do is put your usual savings, from other accounts, into the Smart Home Account. Depending on the savings you put into the Smart Home Account, you can reduce the quantum of interest paid by up to 50%.
Here's how Smart Home works to save you money Your home loan interest is calculated, on the principal outstanding minus the savings deposited in your Smart Home Account every month, over and above your EMI. Calculate your savings:
Tax benefits Smart Home customers are eligible for certain tax benefits on principal and interest components of a housing loan under the Income Tax Act, 1961*.
* Please consult your tax advisor/C.A. for specific details.
Exclusive Smart Home banking privileges for you: You can even use the Smart Home Account as your main bank account for depositing and withdrawing money Along with your Smart Home, get access to an HSBC Advance* Account, with the following benefits:
Free access to 23,500 VISA ATMs across India, with your HSBC Advance Platinum Debit Card+ Free cheque payable at par facility Dedicated service desks and counters at HSBC branches in India Financial planning services to help you plan your financial goals
* For a Mortgage relationship where loan amount is Rs. 15 lakh or more with HSBC India.
The usage of the card is governed by applicable terms and conditions:
All loans at the sole discretion of The Hongkong and Shanghai Banking Corporation Limited, India. Loans available for applicant and properties in and around the city limits of Mumbai, Pune, New Delhi(NCR), Bengaluru, Chennai, Ahmedabad, Chandigarh and Jaipur and are subject to change from time to time.
Please be advised that vide Notification No. 8/2009 - ST dated February 24, 2009, a service tax of 10% + 2% education cess + 1% secondary and higher secondary education cess thereon will be applicable on our fees and charges
Every morning, Masayuki Kimura's eyes pop open at 3 a.m., and he can't get back to sleep. It has been the same ever since the day a tsunami ripped through his hometown and upended his life. It has been the same ever since the day a tsunami ripped through his hometown and upended his life. Even if the lost all but also is good to start from scratch. Is required there is the strong force, power and courage of the region, will be the cornerstone of the new region enormously.
"Since we had 7.7 per cent in first quarter of 2011-12, we should expect that average for the remaining part of the year to be 7.5-7.6 per cent. This is partly because we have been raising interest rates," RBI Deputy Governor Subir Gokarn told reporters. The economy, he said, has been slowing down since the last (January-March) quarter of 2010-11 when it recorded a growth rate of 7.8 per cent.
In its mid-year monetary policy review last month, RBI had lowered the growth projections to 7.6 per cent for 2011-12 from 8 per cent estimated earlier. In the previous fiscal economy grew by 8.5 per cent. The RBI Deputy Governor further said that slowdown in economy was impacting the overall investment scenario in the country. Slowing investments was getting reflected in the index of industrial production (IIP), which dipped to two year low of 1.9 per cent.
In the first half of the fiscal IIP grew by 5 per cent, lower than 8.2 per cent growth in the corresponding period last fiscal. The Reserve bank has raise interest rates by 375 basis points since March, 2010 in its bid to tame inflation, which is still hovering around 10 per cent.
Inflation, Gokarn said would start moderating from December onwards and dip below 7 per cent in April, 2012. "Downward trajectory of inflation begins in December and will continue... You can infer that it will come down below 7 per cent in April," he said.
Gokarn said the overall inflation is being driven mainly by food inflation, which account for 15 per cent in the basket. Food inflation stood at 11.81 per cent for the week ended October 29. Food inflation, he said is mainly being driven by protein based items, fruits and vegetables. "Food inflation at 11 per cent is not a healthy situation. Pressure on food inflation remains. The risk of it becoming endemic remains," Gokarn added.
As per the latest data for the week ended October 29, eggs, meat and fish became costlier by 12.74 per cent, vegetables by 26.05 per cent and fruits by 11.70 per cent. Gokarn said the deceleration in demand will actually help to stabilise inflation going ahead. "...since we see that in a visibility sense now, we think it was appropriate to give the guidance that we may have reached the peak of the interest rate cycle but it remains a guidance because we are not discounting the risk that inflation could re-emerge," he added.
In the market's attention toward Europe's financial problems, "it soloing so here also became a topic" and has been pulling in market is the U.S. budget cutting measures bipartisan talks. Also try and be agreed deadline of 23 once again selling pressure takes $. August revives nightmare--U.S. debt limit issue United States bond downgrades, and dollar plunge. Shares in Europe fluctuated early Friday, swinging towards either sides of the flat line, as concerns over Italy's fiscal affairs continued to worry investors.
At the time of writing, the FTSE was off 0.1% in Britain, France's CAC was flat while Germany's DAX was trading 0.1% lower. Shares rose in Asia following a positive close for U.S. stocks overnight after Italy carried out a successful treasury auction yesterday and the yield for its 10-year bond fell below the key 7% level. On Friday, Italy's Senate is slated to vote on a emergency-funds package passed by the European Union that demands strict austerity measures. Former European Commissioner Mario Monti has emerged as the frontrunner to replace Prime Minister Silvio Berlusconi who will resign after the vote after losing support of his backers. While Greece's new prime minister, Lucas Papademos, is expected to roll out cabinet changes to tackle the debt crisis. Financials traded broadly higher in early trade with Barclays, BNP Paribas, Credit Agricole and Deutsche Bank rising between 1% and 2.2%. Shares of International Consolidated Airlines Group jumped 4.1% after a trading update.
Brushing aside the downgrade of Indian banks by Moody’s, the Government said the rating has no significance as domestic lenders are much stronger than their global peers.
“We are not concerned. We are not affected by the downgrade. Looking at how the global banks are faring, we are much stronger and the ratings have no significance,” Financial Services Secretary D K Mittal told PTI.
He was reacting to rating agency Moody’s lowering the outlook of the Indian banking system to “negative” from “stable”. A “negative” outlook is characterised by volatility and uncertain conditions. Moody’s said that slow growth, both in domestic and foreign economies, is putting stress on banks’ asset quality, capitalization and profitability.
“I don’t see any reason for the downgrade. Our banks are fully capitalised and the government will continue to capitalise it,” Mr. Mittal added.
As regards bad loans of Indian banks, Mr. Mittal said, “Our NPAs are better compared to other global banks. Indian economy is growing at eight per cent, so the stress that Moody’s has pointed out, is more outside India than within. We are growing better and our credit growth will also be good.” Reserve Bank Deputy Governor Subir Gokarn had also said that the non-performing assets (NPAs) of banks are not posing any threat to the banking system.
However, Moody’s said, “With asset quality, given the tightening environment, we anticipate that it will deteriorate over the next 12-18 months, thereby causing an increase in provisioning needs for the banks in FY’12 and FY’13.” Following the ratings downgrade, the BSE banking index declined over 2 per cent to 11,082 points at 1444 hrs.
Now, what happens when the country you are resident in has a double taxation avoidance agreement with India.
Currently, India has DTAA with around 80 countries.We will look at DTAA provisions that India has with UK and US. Broadly, NRIs will be able to avail a reduced TDS rate on certain incomes in India. If you are availing this lower rate, you would need to submit a tax residency certificate (issued by the country of your residence) to the payer.
Interest on bank deposits, bonds etc
What DTAA says: Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. However, such interest may also be taxed in the Contracting State in which it arises and accordingly to the law of that State, provided that where the resident of the other Contracting State is the beneficial owner of the interest the tax so charged shall not exceed 15 per cent of the gross amount of the interest.
What it means for NRIs: It means that if the interest is earned by an NRI out of deposits in India, the country in which he is resident has the right to tax this income. But TDS will be deducted on the same in India at the lower rate of 15 per cent (as against TDS rate of 30 per cent in absence of any DTAA). So the TDS rate on this income will be at 15 per cent. As an NRI in these countries, you would have to add this income to your taxable income in the country of your residence. But you can get a tax credit for the tax paid in India.
Dividends
Dividend earned on equity shares traded on a recognized stock exchange in India are tax-free in the hands of the person earning the dividend. Therefore, there will be no tax deducted at source on your dividend earnings.
Do remember however, that dividends are taxed in the US and the UK and this income will therefore be taxed in your country of residence.
Capital gains on securities
-Equity shares and equity mutual funds (mutual funds with more than 50 per cent in equities)
Long term capital gains, that is profits made on sale after 1 year from date of purchase, on equity shares and equity mutual funds are exempt from tax. There will be no TDS applicable. Short term capital gains, that is, profits on sale within one year of date of purchase, will be subject to a TDS of 15 per cent. There is no reduction in TDS rate available in the DTAA.
-Debt mutual funds, corporate debentures
Long term capital gains from debt mutual funds and corporate debentures (when sold in the secondary market) will be subject to TDS at 10 per cent. Short term capital gains will be subject to a TDS of 30 per cent. There is no reduction of TDS rate available in the DTAA with respect to these gains. For US and UK residents, these gains will be taxed in the country of your residence. You will however, be able to claim a credit on the tax that has been deducted at source.
Capital gains on other assets like house property, gold
There is no reduction of TDS rate available in the DTAA with US and the UK. Therefore, long term capital gains will be subject to a TDS of 20 per cent and short term capital gains will be subject to a TDS of 30 per cent. Again, for UK and US residents, these incomes need to be added to the total taxable income in the country of your residence. You will be eligible to claim a credit on the TDS paid in India.
Rent
What DTAA says: Income derived by a resident of a Contracting State from immovable property (real property), including income from agriculture or forestry, situated in the other Contracting State may be taxed in that other State. What it means for NRIs: If you are an NRI and have given a property on rent in India, the income from rent will be charged to tax only in India. Therefore, TDS would be charged at 30 per cent. If the tenant does not deduct tax at source, you must file your tax returns and pay up the right amount of taxes as per your tax slab. You would still have to disclose this income in your tax return in the US or UK and claim the credit of tax paid in India.
Professional services
What DTAA says on Professional Services: Income derived by a person who is an individual or firm of individuals (other than a company) who is a resident of a Contracting State from, the performance in the other Contracting State of professional services or other independent activities of a similar character shall be taxable only in the first-mentioned State except in the following circumstances when such income may also be taxed in the other
Contracting State:
(a) if such person has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities; in that case, only so much of the income as is attributable to that fixed base may be taxed in that other State; or
(b) if the person's stay in the other Contracting State is for a period or periods amounting to or exceeding in the aggregate 90 days in the relevant taxable year.
What it means for NRIs: If you are an NRI providing professional services to a company or person in India, the income will be taxed only in your country of residence. Therefore, no tax would be deducted at source on this income. However, you will have to submit a tax residency certificate from the tax authorities of the country that you are a resident of.
Royalty
What DTAA says on Royalty: Royalties and fees for included services arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. However, such royalties and fees for included services may also be taxed in the Contracting State in which they arise and according to the laws of that State; but if the beneficial owner of the royalties or fees for included services is a resident of the other Contracting State, the tax so charged shall not exceed:
(a) in the case of royalties referred to in subparagraph (a) of paragraph 3 and fees for included services as defined in this Article (other than services described in subparagraph (b) of this paragraph):
(i) during the first five taxable years for which this Convention has effect,
(A) 15 percent of the gross amount of the royalties or fees for included services as defined in this Article, where the payer of the royalties or fees is the Government of that Contracting State, a political subdivision or a public sector company; and
(B) 20 percent of the gross amount of the royalties or fees for included services in all other cases; and
(ii) during the subsequent years, 15 percent of the gross amount of royalties or fees for included services; and
(b) in the case of royalties referred to in subparagraph (b) of paragraph 3 and fees for included services as defined in this Article that are ancillary and subsidiary to the enjoyment of the property for which payment is received under paragraph 3(b) of this Article, 10 percent of the gross amount of the royalties or fees for included services.
What it means for the NRI: If you are an NRI receiving royalty payments for services provided in India, you will be subject to TDS as per the rates mentioned above. You will however also be taxed in your country of residence but you can claim a credit of the TDS paid in India.
