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RNOR Status NRI can save Tax up to 3 Years

Shitanshu Kapadia
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RNOR Status NRI can save Tax up to 3 Years

RNOR

RNOR Status NRI – Today many NRI are planning to shift to India. They will be changing their investor status from NRI to a resident and they are worried about huge tax applicable on investment options for a normal resident.

Recently I got an email from Mr.Shiva. Mr.Shiva is NRI and living in Singapore since 2001. He is planning to return to India permanently and bringing all his saving from overseas to India. It will be his retirement saving and he is looking for safe investment option with a reasonable return and tax saving benefits in India. He is planning to invest in fixed deposit but he wants to enjoy tax benefit. As he will be ordinary resident he needs to pay Tax on FD. However, RNOR status can help him to save tax up to 3 Years on FCNR deposit. So, let’s take a look at RNOR status for NRI and how it can help to save tax.

Also Read – Health Insurance Plans for NRI in India

What is RNOR Status?

RNOR is Resident but Non Ordinary Resident status. It is a transitional state between becoming resident of India from NRI. The special status of RNOR is given to individual if he/she satisfy following conditions.

  1. If you are holding NRI status for 9 out of 10 previous years.
  2. If you have spent less than 729 days in India in past 7 years.

RNOR

Note – Above conditions are either or conditions. This means any one condition should be satisfied in order to become RNOR.

Also Read – How NRI can transfer money abroad from property sale?

What are the Tax benefits of RNOR status?

RNOR is special status given to NRI returning to India. RNOR in India can continue to enjoy tax benefit like NRI. RNOR has to pay taxes only on the income generated from India. They will continue to enjoy tax benefit on Foreign Income. In the other words “Income which has no relation with India” will be tax free.

This includes –

  • Any interest or dividends from foreign securities
  • Any capital gains from the sale of foreign assets including property
  • Any withdrawals made from foreign retirement funds
  • Interest earned on Foreign Currency Non Resident (FCNR) bank account or deposit held in India (until maturity).
  • Interest on foreign currency accounts held in India.

Recommended Post – Financial Checklist for NRI before leaving India

How long can I be RNOR?

Answer of this question depends on the fulfillment of conditions for RNOR. If you fulfilled first condition for RNOR means if you are holding NRI status for 9 out of 10 previous years you will get RNOR for 1 year. Secondly, if you have spent less than 729 days in India in past 7 years you can get RNOR status for 2nd and 3rd Year. Maximum you can get RNOR status for 3 years.

Example

Mr.Shiva is staying in Singapore for last 15 years. He will be returning to India in June 2016. He is not clear where to apply for RNOR status and how long he can be RNOR?

As Mr.Shiva is returning back to India in FY 2016-17 and both condition for RNOR is getting fulfilled he will be RNOR for 3 years and he can enjoy tax benefit for NRI up to FY 2018-19. After that, he will be an ordinary resident.

Mr.Shiva need not to contact to any authority to avail RNOR status. The RNOR status will be applicable to a person based on his or her length of stay outside India.

Important points Investor status from NRI to a resident

  • Once you become an ordinary resident you need to intimate bank. Now you cannot operate the NRO/NRE/ FCNR accounts.
  • You need to open ordinary saving bank resident rupee account.
  • You need to open a new Demat account with ordinary status for making investment in stock market.
  • Trading account with NRI status has to be closed.
  • A new KYC needs to be filled up mentioning new address and details. This is required for Mutual Fund Investments.
  • If you are not holding any PAN card, you need to apply for new PAN card.

Hope RNOR tax benefit and other details that are given above will help all NRI friends returning back to India?

If you have any query related to NRI taxation or any other problem related to NRI feel free to post in the comment section.

A special thanks to Mr.Shiva who inspired me to write this Post.

10 Most Expensive Stocks in the India

Shitanshu Kapadia
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0
10 Most Expensive Stocks in the India

The Most Expensive Stocks in India – The stock market investment is a double-edged sword. It can make you rich or it can make you poor. To earn a handsome return, it is important that you invest in the right stock.  In this article, we will take a look at the 10 most expensive blue chip stocks in India. These stocks are the most expensive and instead of this one stock, you can purchase expensive items such as an iPad or even a 10 gm gold ring for your wife. 🙂

most expensive stocks india

10 Most Expensive Stocks in the India

#1 MRF

MRF is the most expensive stock in the Indian stock market. MRF is the largest tire manufacturer in India. MRF stock price as of today (i.e. 26/6/2024) is ₹ 1,25,821. You can purchase 20 gm gold on behalf of one stock of MRF. In the last few years, the stock price has increased significantly. MRF Shares price in 2019 was ₹66,327.75. By 2024, its share price rose to ₹1,26,954.85. It gave a positive return of over 91% with a CAGR of 13.8% over the last 5 years.

#2 Honeywell Automation India

Honeywell Automation is the second most expensive stock in India as of 2024. Honeywell produces a variety of commercial and consumer products. The stock of Honeywell Automation is trading at ₹ 57,600. Honeywell stock generated a positive return of over 110% with a CAGR of 16% over the last 5 years. Honeywell is one of the best stocks to invest in for the long term.

#3 Kaycee Industries

Kaycee Industries is a leading electrical switches manufacturer and exporter. The stock of Kaycee is one of the most expensive stocks in 2024. The stock is trading at ₹ 59,439. Kaycee Industries Stock price in 2014 was ₹ 3,500. This means the stock has generated a positive return of over 1,564% with a CAGR of 32.4% over the last 10 years.

#4 Page Industries

Page Industries is a textile company and holds an exclusive license of Jockey International for distribution in India and neighboring countries. The stock price of the Page Industries in 2024 is ₹ 39,585. The stock price of Page Industries was ₹11,647 in 2014. Page Industries stock gave a return of over 239% with a CAGR of 13% over the last 10 years.

Best Blue Chip Stocks in India (2024)

#5 3M India

3M India is also on the list of most expensive stocks. 3M India is a diversified technology company dealing in Safety & Industrial, Transportation & Electronics, Health Care, and Consumer segments. The stock price of 3M India in 2024 is ₹ 37,183. The company is almost debt-free. In 1993, the price of 3M India shares was ₹155.00. If you had put ₹10,000 into 3M India Shares in 1993, your investment would have increased to ₹23.98 Lakh by 2024.

#6 Bosch Ltd

Bosch is also on the list of most expensive stocks. Bosch has diversified businesses and deals with multiple sectors such as automotive technology, industrial technology, consumer goods and energy and building technology. The CMP of Bosch is ₹ 34,149. Bosch Share price in 2014 was ₹19,400. This means Bosch has given a 76% return with a CAGR of 5.8% over the last 10 years.

#7 Yamuna Syndicate

Yamuna Syndicate Ltd. is involved in the trading and marketing of a diverse range of products, components, and consumables associated with the automotive sector, agrochemicals, and industrial and consumer electrical goods. The stock price of Yamuna Syndicate Ltd in 2024 is

₹ 55,439. The Yamuna Syndicate stock price in the year 2020 was ₹9000. This means Yamuna Syndicate generated 515% returns from 2020 to 2024, with a compound annual growth rate (CAGR) of 57.5%.

#8 Shree Cement

Shree Cements is in the business of Cement manufacturing and selling. Shree Cements is one of the lowest-cost cement producers in India. The stock price of Shree Cements in 2024 is ₹ 27,499. The price of Shree Cement stock in 2014 was ₹9,350. This means Shree Cement generated a 194% return with a CAGR of 11.3% over the last 10 years.

#9 Abbott India Ltd

Abbott India Ltd is a top multinational pharmaceutical company in India that sells its products mainly through independent distributors within the country. The stock price of Abbott India Ltd in 2024 is ₹ 27,640. Abbott India’s share price in 2014 was ₹ 3,600. This means Abbott India gave a 647% return with a CAGR of 22.2% over the last 10 years.

#10 Bombay Oxygen

Bombay Oxygen is next on the list of Most Expensive stocks in India. Bombay Oxygen deals in primarily financing and investments business. The stock price of Bombay Oxygen in 2024 is ₹ 24,364. The stock price of Bombay Oxygen in 2014 was ₹ 5,607. This means Bombay Oxygen gave a return of 334% with a CAGR of 15.82% over the last 10 years.

Note – The above price comparison is as of June 2024.

Why are these stocks the most expensive stocks?

The reasons why these stocks are expensive is given below.

  • A limited number of stocks are available in the market for trading.
  • The demand for these stocks is high.
  • No split or bonus shares have been announced by a company for a couple of years hence face value of a share is high.

Over to You

Do you own any of the expensive stocks mentioned above?

Do you think these stocks will be able to outperform in the future?

Do share this list of the most expensive stocks with others.

Happy Investing!

What is required to become a successful businessman?

Shitanshu Kapadia
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What is required to become a successful businessman?

successful businessman

I come across many people who talks about starting a business.They aspire to become a successful businessman. However, a majority of them are talking about starting an own business since past several months or years and they have not taken any step in this direction.

Whenever I ask them that what you are planning to do? When you will be starting a business? I am getting following answers.

  • I have yet not decided anything. I am still thinking….!
  • I am thinking to start own tuition class or food business…or
  • I am in search of a partner.
  • You only tell me what to do and how to start?

Majority of people are not clear about what they want to do? So, there is no question of when.

Why many people talk about starting business but not able to implement it?

  • They are happy and satisfied with current situation. They don’t want to change. They think that they are earning steady paycheck why to take a risk?
  • They are not serious about starting a business. They are just talking about starting a business to impress the people. Actually, they don’t want to start a business they are just passing the time.
  • They think that they are not ready to start the business as they don’t have experience and money.
  • Fear of failure is another reason. When fear of failure is higher compare to the happiness of success it is very difficult to become a businessman.

Also Read – 10 Most Successful Business Ideas

What is required to become a successful businessman?

  • Passion – Burning desire to do something for own.
  • Clarity – Clarity of thought process behind starting own business.
  • Business idea – You should have a business idea or concept.
  • Business plan – You should have a business plan and money for starting own business.
  • Confidence – Confidence in your business idea. If you have multiple doubts it will be difficult to succeed in business.
  • Patience- You should have a lot of patience. It may be possible that initial stage your idea will not click or you will not make any profit.
  • Perseverance – You should have a strong determination to become a successful businessman.
  • Backup plan – You should be ready with a backup plan. If your business strategy fails, what alternative you have.
  • Luck – Luck is not everything but it also plays an important role in becoming a successful businessman.

As per me if you are doing a job and planning to start your own business, instead of resigning from job first try side-business or take leave from your job and do a pilot run of your business. 

Myths about Starting Business & Entrepreneurship 

  • Entrepreneurs are born and not made. It is not a reality today anyone who aspires to start a business can become a successful businessman.
  • You need an innovative idea to become a successful businessman. It is not a reality you can even pick up an old successful business idea and implement it in your own way.
  • It is necessary to have the experience to become a businessman. It is a myth, today you will find many people who start and run a business without any experience and they are successful. An example is Steve Jobs he started his own company without any experience and today Apple is one of most successful company all over.
  • You need education and training to start the business. Well, as per me, insight is more important than education. We have examples like Shri.Dhirubhai Ambani, Bill Gates etc. who has not completed their education yet they have built a successful business empire.
  • You can become crorepati by starting a business in few days. It is a myth it takes a time to make money from your business. Business is a way to become wealthy but it is not a shortcut. In any business, you need to first create a value and then you can sell it.   

Over to you –

At last, I would like to advise you that if you are doing a job and planning to start your own business start as early as possible.

To become businessman is a logical decision. Whatever efforts you are currently putting in your Job if same efforts you place it in business you can probably earn more money.

If you are aspired to become a businessman in future hope thoughts shared above will help you. In addition to I also recommend to go through my earlier post  – Your salary paycheck won’t make you rich.

10 Best Stocks to buy for the long term

Shitanshu Kapadia
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0
10 Best Stocks to buy for the long term

long term stocks

It is a good idea to buy stocks for the long term. Long term investment in stock market always pays a higher return.Even stock gurus like Warren buffet and Rakesh Jhunjhunwala also advice to make investment for long term. However, it is not an easy task to identify best stocks for the long term investment. You need to carry out extensive research and evaluate various parameters of stock such as earning growth, past performance, dividend, market cap, future earning potential etc.

In a fast-growing economy like India, the stock market offers tremendous opportunities for those who can be patient. Whether you’re an experienced investor or just getting started, focusing on long-term potential can be the key to building wealth. But here’s the big question—which stocks should you invest in for the long haul?

In order to simplify your job, I have done analysis and identified 10 Best Stocks to buy for the long term. These stocks are selected based on multiple factors such as past performance, future earning potential etc. So, here is 10 Best Stocks you can buy for the long term.

Also Read – MoneyWorks4me – Mutual Funds and Stock Decision Making Tool

10 Best Stocks to buy for the long term

1. Reliance Industries Ltd. (RIL)

Let’s start with the big daddy of Indian stocks—Reliance Industries. Led by Mukesh Ambani, this conglomerate touches almost every corner of the Indian economy. From oil and gas to retail and telecom, Reliance has its hands in multiple profitable pies.

  • Why invest? The game-changer here is Reliance’s diversification. Jio has revolutionized the telecom sector, while Reliance Retail dominates the market with its vast presence. Moreover, the company is making big bets on green energy—a sector that’s expected to boom in the next decade.
  • Long-term outlook: With its strong financials, innovation-driven strategy, and a visionary leadership team, RIL is well-positioned to maintain its market dominance.

2. Tata Consultancy Services (TCS)

When you think of IT companies in India, TCS is the first name that comes to mind. A subsidiary of the Tata Group, TCS is one of the world’s leading IT services and consulting companies.

  • Why invest? TCS boasts steady growth, a global client base, and a strong focus on innovation and technology. The company’s consistent performance and stable dividends make it a go-to choice for long-term investors.
  • Long-term outlook: As digital transformation and AI adoption surge globally, TCS is likely to play a pivotal role, securing its position as a leader in IT services.

3. HDFC Bank

In the banking sector, HDFC Bank remains an unbeatable force. Known for its stellar management and customer-first approach, HDFC Bank has been a consistent performer over the years.

  • Why invest? The bank’s robust credit quality, expanding loan book, and wide network make it a favorite among investors. Its ability to navigate challenges like economic slowdowns while maintaining profitability is truly commendable.
  • Long-term outlook: With India’s growing economy and rising demand for banking services, HDFC Bank is poised for sustainable growth.

4. Infosys Ltd.

Another IT giant, Infosys, has cemented its position as one of India’s top-performing companies. Known for delivering cutting-edge tech solutions, Infosys continues to grow domestically and globally.

  • Why invest? Infosys is highly focused on innovation, digital transformation, and expanding its global footprint. Its strong revenue growth and consistent dividend payouts make it an excellent long-term bet.
  • Long-term outlook: With the tech revolution gaining momentum, Infosys is well-prepared to capitalize on emerging trends.

5. Hindustan Unilever Ltd. (HUL)

If you’ve ever used a soap, shampoo, or tea in India, chances are it’s a product of HUL. This FMCG giant is synonymous with daily essentials, and its brands like Dove, Surf Excel, and Brooke Bond are household names.

  • Why invest? HUL has an unrivaled brand portfolio and a massive distribution network. The demand for FMCG products will only rise as India’s population and middle class continue to grow.
  • Long-term outlook: Its strong fundamentals, brand value, and pricing power make HUL a safe and reliable choice for long-term investors.

6. Asian Paints

In the paints and coatings sector, Asian Paints is the undisputed leader. It has been painting India’s homes and dreams for decades with its innovative products and strong brand loyalty.

  • Why invest? Asian Paints has a commanding market share, solid financials, and an impressive growth trajectory. Its ability to innovate and meet consumer demand ensures a competitive edge.
  • Long-term outlook: With increasing urbanization and a rising preference for aesthetic homes, the demand for premium paints is expected to soar.

7. Bajaj Finance Ltd.

When it comes to non-banking financial companies (NBFCs), Bajaj Finance is a clear winner. Known for its focus on consumer lending, Bajaj Finance has witnessed incredible growth over the last decade.

  • Why invest? Its ability to cater to retail customers with innovative loan products has driven its growth. With digital adoption and fintech solutions, Bajaj Finance is redefining consumer lending in India.
  • Long-term outlook: As India’s middle-class population expands, the demand for consumer loans is bound to increase, putting Bajaj Finance in a sweet spot.

8. Larsen & Toubro (L&T)

Infrastructure is the backbone of India’s development, and L&T is the leader in this space. From building bridges to constructing power plants, L&T has been shaping India’s infrastructure for decades.

  • Why invest? L&T’s strong order book, diversified business segments, and execution capabilities make it a solid long-term investment.
  • Long-term outlook: With India focusing on infrastructure development, L&T will play a crucial role, leading to consistent growth in revenues and profits.

9. Dr. Reddy’s Laboratories

India is often called the “pharmacy of the world,” and Dr. Reddy’s stands out as a key player in the pharmaceutical sector. This company develops affordable medicines and has a significant presence in global markets.

  • Why invest? The demand for affordable healthcare and generic medicines is growing globally. Dr. Reddy’s R&D capabilities and innovative solutions give it a competitive edge.
  • Long-term outlook: As healthcare spending increases, both in India and abroad, Dr. Reddy’s is well-positioned to benefit.

10. Maruti Suzuki India Ltd.

When it comes to the Indian automobile sector, Maruti Suzuki is the undisputed king. The company has been leading the Indian car market for decades with its affordable and reliable vehicles.

  • Why invest? Maruti Suzuki’s strong brand reputation, wide product range, and focus on electric vehicles (EVs) make it a compelling long-term bet.
  • Long-term outlook: As India’s automobile industry grows and demand for EVs rises, Maruti Suzuki’s leadership position will help it thrive.

Investing for the long term is like planting a tree. You nurture it, give it time, and watch it grow into something strong and beautiful. The stocks listed above are some of the best options in India to help you achieve that financial growth. They’re industry leaders with solid fundamentals, visionary leadership, and growth potential.

Of course, the stock market comes with its share of risks. So, make sure you do your homework, diversify your investments, and stay patient. Long-term investing isn’t about timing the market; it’s about time in the market.

FAQ

1. Should I invest in all these stocks at once?

No, it’s better to start small and gradually build your portfolio. Focus on diversifying across industries to minimize risks.

2. How long is “long term” when investing in stocks?

Generally, long-term investing means holding stocks for 5-10 years or more to see significant returns.

3. Are these stocks suitable for beginners?

Yes, these stocks are relatively stable and backed by strong fundamentals, making them ideal for beginners.

4. Can I invest in these stocks with mutual funds?

Absolutely! Many mutual funds include these stocks in their portfolios, offering you an easy way to gain exposure.

5. Is now a good time to invest in Indian stocks?

While the timing depends on market conditions, the Indian economy’s growth trajectory makes it a favorable time to invest for the long term.

 

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