mts_nov162016

MTS Golden Group members in Pearland TX listen with interest to Ranvir “Biki” Mohindra’s (right) presentation on retiring in India.

Wed, Nov 16, 2016

PEARLAND – Many seniors have thought about spending their retirement years in India. How practical is it in view of the changing tax policies of both the United States and India?

 A presentation on this topic was made by Ranvir “Biki” Mohindra, founder and principal of NRI Tax & Wealth Advisors on Sunday, November 13 afternoon before the Meenakshi Temple Society’s Golden Group, an organization of seniors and soon-to-be seniors.

 About 20 members of the Golden Group attended the presentation.

 After an introduction by Convener Ramamurthy Ramsunder, Mohindra explained the advantages and disadvantages of retiring in India. Among the advantages Mohindra cited were possible low cost of living, availability of domestic servants and drivers, religion and spirituality and high rates of return on bank accounts.

 As Mohindra explained it, each of these advantages has a built-in disadvantage.

 “It takes me a week to recover from visiting a temple in India,” Mohindra explained.

 “I would rather go to a temple in the U.S., such as the Meenakshi temple here.”

 Specific disadvantages Mohindra mentioned were not being close to children and grandchildren, traffic and urban congestion, cleanliness and sanitation, potential currency devaluation and demonetization, bureaucratic red tape (PAN, ADHAR cards, filing taxes) and corruption in daily life.

 Mohindra explained a Catch 22 situation regarding PAN and ADHAR cards.

 “You have to have proof of residency such as a utility or bank account to obtain a PAN card, but in order to set up a utility connection or a bank account, you have to have a PAN card,” explained Mohindra.

 There’s corruption in daily life, Mohindra explained.

 “If a utility bill is due on the 20th, you invariably get it on the 25th or later,” he explained.

 “As a result, your payment is always delinquent. To fix the delinquency, you have to pay a small bribe to the clerk. With the Modi government’s war against corruption, the government servants are asking for double the amount, in case of getting caught.”

 The biggest hurdles to retiring in India are residency tests and taxation both in U.S. and India.

 “Because of its one-year and four-year tests, you are in danger of being categorized as a resident if you stay past 90 days in a year. As an Indian resident, you could liable for paying global income taxes to both U.S. and India. A senior couple with $100K income could end up paying $11,000 to the U.S. government and another $11,000 to the Indian government.”

 Mohindra did identify Auroville in Pondicherry as a desirable retirement community in India and explained a possible loophole in getting a sizeable tax credit from the U.S. government for selling ancestral property in India.

 Mr. Mohindra is currently writing a series of articles on NRI taxes and generating wealth in India in India Herald.

This article was originally printed in India Herald.

____________________

A resident of Texas for over 40 years, Ranvir Mohindra has been involved with many issues that are relevant to the South Asian community living in the United States. Whether you have money in India that you did not report or have inherited an ancestral property, there are new rules of compliance. Mr. Mohindra’s expertise is built on personal experiences and access to tax and legal professionals, both in Houston and in India, who can provide additional support to bring you in compliance and protect your assets. He can be reached at 713-805-0915 or nritax.wealth@gmail.com

Golden Group members in Pearland TX listen with interest to Ranvir “Biki” Mohindra’s (right) presentation on retiring in India.

Wed, Nov 16, 2016

PEARLAND – Many seniors have thought about spending their retirement years in India. How practical is it in view of the changing tax policies of both the United States and India?

 A presentation on this topic was made by Ranvir “Biki” Mohindra, founder and principal of NRI Tax & Wealth Advisors on Sunday, November 13 afternoon before the Meenakshi Temple Society’s Golden Group, an organization of seniors and soon-to-be seniors.

 About 20 members of the Golden Group attended the presentation.

 After an introduction by Convener Ramamurthy Ramsunder, Mohindra explained the advantages and disadvantages of retiring in India. Among the advantages Mohindra cited were possible low cost of living, availability of domestic servants and drivers, religion and spirituality and high rates of return on bank accounts.

 As Mohindra explained it, each of these advantages has a built-in disadvantage.

 “It takes me a week to recover from visiting a temple in India,” Mohindra explained.

 “I would rather go to a temple in the U.S., such as the Meenakshi temple here.”

 Specific disadvantages Mohindra mentioned were not being close to children and grandchildren, traffic and urban congestion, cleanliness and sanitation, potential currency devaluation and demonetization, bureaucratic red tape (PAN, ADHAR cards, filing taxes) and corruption in daily life.

 Mohindra explained a Catch 22 situation regarding PAN and ADHAR cards.

 “You have to have proof of residency such as a utility or bank account to obtain a PAN card, but in order to set up a utility connection or a bank account, you have to have a PAN card,” explained Mohindra.

 There’s corruption in daily life, Mohindra explained.

 “If a utility bill is due on the 20th, you invariably get it on the 25th or later,” he explained.

 “As a result, your payment is always delinquent. To fix the delinquency, you have to pay a small bribe to the clerk. With the Modi government’s war against corruption, the government servants are asking for double the amount, in case of getting caught.”

 The biggest hurdles to retiring in India are residency tests and taxation both in U.S. and India.

 “Because of its one-year and four-year tests, you are in danger of being categorized as a resident if you stay past 90 days in a year. As an Indian resident, you could liable for paying global income taxes to both U.S. and India. A senior couple with $100K income could end up paying $11,000 to the U.S. government and another $11,000 to the Indian government.”

 Mohindra did identify Auroville in Pondicherry as a desirable retirement community in India and explained a possible loophole in getting a sizeable tax credit from the U.S. government for selling ancestral property in India.

 Mr. Mohindra is currently writing a series of articles on NRI taxes and generating wealth in India in India Herald.

This article was originally printed in India Herald.

____________________

A resident of Texas for over 40 years, Ranvir Mohindra has been involved with many issues that are relevant to the South Asian community living in the United States. Whether you have money in India that you did not report or have inherited an ancestral property, there are new rules of compliance. Mr. Mohindra’s expertise is built on personal experiences and access to tax and legal professionals, both in Houston and in India, who can provide additional support to bring you in compliance and protect your assets. He can be reached at 713-805-0915 or nritax.wealth@gmail.com

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