Blog

How NRI can get benefits of DTAA agreement?

Incometax

-

September 28, 2018

DTAA

DTAA is Double Tax Avoidance Agreement. DTAA is an agreement between two countries to avoid double taxation. It is globally known as a tax treaty.

The term DTAA is a popular term known to most of the NRI’s. Most of the NRI has dual income, they earn in a foreign country as well as in India. In such cases, it is possible that income earned in one country would attract tax in another country also. This is called double taxation. E.g If you are moving abroad by keeping your income source in India. Such as fixed deposit, saving bank account etc. Taxes are applicable to these sources in India as well as the country of your residence. This is called double taxation. To avoid double taxation and to make the country attractive destination a concept of double tax avoidance agreement is developed.

DTAA does not eliminate the amount of tax payable as a whole. It enables NRI to reduce the tax burden. In simple terms whenever NRIs earn an income in India, instead of normal TDS, tax rate decided under tax treaty DTAA is applicable.

It helps NRI to reduce the tax burden. The tax rate applicable to this type of income would be taxed at the prescribed rate under the act. India has established DDTA with 80 foreign countries across the world.

Also Read – Income Tax for NRI in India

Benefits of DTAA

There are multiple benefits of DTAA. Few sure shot benefits are given below.

Lower Tax burden for NRI
Minimize the opportunity of tax evasion
Double taxes will be avoided on the same income
Tax exemption

Income Types under DTAA

The income types covered under double tax avoidance agreement are given below.

Any income arising from capital gain on transfer of assets in India.
Income from House property located in India.
Salary Income received in India.
Interest income earned in India from saving account, fixed deposit etc.
Royalty income earned in India.
Income from the service provider in India.

NRI can avoid paying double taxation on above income

Also Read –RNOR Status NRI can save Tax up to 3 Years

How NRI can get benefits of DTAA agreement of Taxation?

In order to claim DTAA, NRI requires to provision Tax Residency Certificate (TRC). NRI will have to produce a Tax Residency Certificate from the country of residence. A foreign national claiming a relief under DTAA is required to make an application in the home country to its tax authorities or to other designated authorities to obtain TRC.

Which methods NRI can use to avail DTAA benefits?

Following methods can be used by NRI to claim DTAA benefits.

Tax Credit

Tax Credit method is used to claim benefit in the country of residence. In this method, a taxpayer needs to add all income from foreign sources into total taxable from the resident country and calculate applicable income tax. Based on the law applicable in that country a person can claim the tax credit.

Tax Exemption

This method is claiming relief in any one country. In this method, a taxpayer is allowed to claim his income from foreign sources under tax exemption. It is a method to eliminate the complete scenario of double taxation.

Deduction

The third method is the deduction method in which the taxpayer pays the tax in the country where income is earned and get subtracted from the global income in the country of residence. The tax is calculated on the difference and paid in the country. This method does not eliminate double taxation completely, that’s why it is less popular method.

List of countries with whom India has singed DTAA are –

Armenia
Australia
Austria
Bangladesh
Belarus
Belgium
Botswana
Brazil
Bulgaria
Canada
China
Cyprus
Czech Republic
Denmark
Egypt
Estonia
Ethiopia
Finland
France
Georgia
Germany
Greece
Hashemite kingdom of Jordan
Hungary
Iceland
Indonesia
Ireland
Israel
Italy
Japan
Kazakastan
Kenya
Korea
Kuwait
Kyrgyz Republic
Libya
Lithuania
Luxembourg
Malaysia
Malta
Mauritius
Mongolia
Montenegro
Morocco
Mozambique
Myanmar
Namibia
Nepal
Netherlands
New Zealand
Norway
Oman
Philippines
Poland
Portuguese Republic
Qatar
Romania
Russia
Saudi Arabia
Serbia
Singapore
Slovenia
South Africa
Spain
Sri Lanka
Sudan
Sweden
Swiss Confederation
Syrian Arab Republic
Tajikistan
Tanzania
Thailand
Trinidad and Tobago
Turkey
Turkemistan
UAE
UAR (Egypt)
UGANDA
UK
Ukraine
United Mexican States
USA
Uzbekistan
Vietnam
Zambia

It is interesting to note that in some countries there are Free zones (Tax Free Zone) where no tax is applicable on the income. That’s why they are called as Tax Heavens. NRI can easily form your company in countries like Dubai and enjoy zero tax benefits.

Conclusion

From the above discussion, it can be said that DTAA is very good tax planning tool for NRI. They can avoid multiple taxes and lower the tax burden.

Note – DTAA tax rate are different for different countries. It is recommended to contact experts in this subject to claim benefits under double tax avoidance agreement.

15 Businesses Ideas in India starting from 1 Lakh

Business Ideas

Shitanshu Kapadia

-

September 27, 2018

0

Leaving a 9 to 5 Job and starting own business is a trend today. The world of business has expanded in leaps and bounds. Young and dynamic individuals including student and housewife are interested in starting own business. However, arranging fund for starting a business is considered as one of the biggest hurdles by aspiring businessmen.

If you are one of them lack of fund should not deter you from pursuing your entrepreneurship dream. You can plan to start a business that can be started with low investment. There are businesses ideas that can be started even with a capital investment of 1 Lakh.

Individuals who are planning to start own business must go through the list of 15 Business Ideas that can be started with an investment of Rs 1 Lakh.

business ideas 1 lakh

15 Businesses Ideas starting from 1 Lakh

Food-Based Businesses Ideas

Food Truck

A food truck is one of the most profitable business ideas that can be started with an investment amount of Rs.1 Lakh. To start a food truck, you need to take FSSI and other government approvals. Other expenses for starting a food truck is buying a raw material and commercial vehicle. You will also need manpower as a helping hand. You can also think of renting four-wheeler instead of buying it.

Your profit from food truck business depends upon the area which you select for placing your food truck.

Food Catering Business

Food Catering is another lucrative business idea that can be started with an initial investment of 1 Lakh. In this business, you need to take a contract for food catering at various events such as marriage, birthday party, anniversaries etc.

You will need a competent team with good knowledge of management. You will also need kitchen items required for cooking food. A success of this business depends on the quality of food and customer service.

Also Read – 40 Small Town Business Ideas with low Investments

Milk & Vegetable Distribution Business

Milk and food industry in India is growing multifold. If you have expertise in managing logistics you can start your own Milk and Vegetable distribution business.

You need to take permission from the local municipal authority to start this business. You will need a good delivery vehicle and cooling unit for milk delivery at a longer distance. To increase the profit margin, you need to tie up with a milk processing company and vegetable supplier directly. Another task associated with this business is finding buyers. At an initial stage, you need to work hard to establish a logistic chain.

Service-Based Businesses Ideas

Computer Hardware Repair & AMC Services

Computer Hardware Repair & AMC Service is a lucrative business option. Most of the company across India opt for computer hardware AMC and repair services. If you have the expertise and manpower you can start this business. The investment required for this business is very low. However, you need to be very good at providing customer service and material delivery.

Real Estate Broker

Real Estate brokerage is a lucrative business option with low investment. If you are living in metro cities with good contacts, you can start this business easily.

As a real estate broker, you can earn commission money on buy, sell or rent. To get started you need small office space and office establishment permission from a local municipality. You can make use of the online portal to get information about property available on buy, sell and rent.

Tuition Class

Education is a field where we never see a recession. Thus, starting a tuition class at home or at small commercial place is an evergreen business idea. This business can be started with very low investment.

If you are knowledgeable and result oriented you can earn lot of money by running tuition class. At an initial stage, you need to spend some money on buying basic infrastructure such as blackboard, benches etc.

Courier Service

You can start own courier service business with low investment. The best place to start courier business is nearby office area. It is advisable to start courier service business by taking agency of big courier companies such as DTDC, First Flight, DHL etc.

Also Read – 200 Small Business Ideas in India with Low Investment

Small Product Businesses Ideas

Flower Shop

Starting a Flower Shop is another lucrative business option with low cost. You can start this business with an initial investment of Rs.50000. Flowers are used in India, not only for gift purpose at special occasions but it is also used for religious purposes.

The business model here is very simple, you need to procure all types of flowers from farmer or wholesale business owner at a lower price and sell it at a higher price to generate a decent profit margin.

Stationary Store

Opening a stationery store is a low investment business idea. Education or in a business requirement of stationery is everywhere. That’s why an ideal place to start stationery store is nearby school or nearby business area. You may need to take shop on rent to start this business. Apart from that, you will need shop establishment license and GST number. It generally takes 1-2 years to establish a stationary store.

Provision Store

Opening a provision or grocery store in the residential area is one of the very good small-scale business ideas. The requirement of skill in this business is very low. Anyone with the small amount of investment can open a provision store.

Seasonal Business

Another small-scale low investment business idea is a seasonal business. India is a country where festivals are celebrated with a lot of joy. You can start a seasonal business of kite, firecracker, rakhi, color etc.

Home Based Businesses Ideas

Chocolate Making

Chocolate Making is small scale home based business idea for women. You need raw material such as mold, chocolate cream and packing material to start chocolate making business. At the initial stage, you need to spend money on marketing and advertisement.

Beauty Parlour

Another home based business idea for women is beauty parlour. A housewife can start this business from home. It is advisable to do a proper course before starting this business. The investment required for this business is very low.

Marriage Bureau

Marriage Bureau is another home based low investment business idea for women. A soft-spoken women with good social circle can get good success in marriage bureau business. You need a database of prospective candidates for starting this business.

Online Businesses Ideas

Blogging

Last business idea on the list is blogging. Blogging is one of my favorite business ideas. The investment required for starting blogging is very low. However, you need to be very good in expressing yourself in the word. Apart from that technical knowledge for managing blog is mandatory. You can earn money via placement of an advertisement on the blog.

Over to you –

I hope you have got a good understanding of 15 Businesses Ideas in India that can be started with 1 Lakh. So, what are you waiting for? Surpass the barrier of money and start moving towards your passion and dreams.

Remember – If you don’t build your dreams, someone will hire you to build theirs.

All the Best!

Personal Finance Analysis using Power BI – Budget Vs Actual

Personal Finance

Shitanshu Kapadia

-

September 24, 2018

0

Personal Finance Analysis using Power BI – Budget Vs Actual

How do you track your monthly expense? Well, most of the people don’t track monthly expense. Few do that by using diary, using Microsoft Excel or by using smartphone apps. Whatever be the case, one thing is sure that tracking your expense is one of the key factors in making your budget work for you. If you don’t know how much you have spent every month, you cannot control your expense and you will end up spending more.

In short, it is essential to track your monthly expense to gain control over it. There are multiple ways to track monthly expense. In this post, I will share a simple method to track your monthly and yearly expense using Power BI.

What is Power BI?

Power BI is a powerful visualization and analytics tool by Microsoft. This tool is freely downloaded from Microsoft Site. We have already discussed Power BI features and benefits in our previous post. Apart from that, we have also seen How to use Power BI for Stock Market Analysis and Mutual Fund Portfolio Analysis using Power BI. In this post, we will see how to track monthly expense using Power BI.

Personal Finance Analysis using Power BI – Budget Vs Actual

The first step towards making own Monthly Expense tracker is creating a source file. In the example given below, we will be using Microsoft Excel as an input file. The file which will be using contains column namely date, description, debit, credit, category and budget. You can also bank account statement available in excel format as an input.

Once you have the required data in excel you need to press the “Get Data” button and provide Excel file which you are using as a data source to Power BI.

Once data is imported, you can start making a dashboard. In the example given below, I have used visualization of Expense Category Analysis, Budget Vs Actual, Total Credit and Debit amount & Latest and oldest expense date. I have also given a filter for month wise expense analysis.

Make Expense Tracker Dashboard

To get Latest Expense date click on New Measure and find out max by writing following query.

Latest Expense Date = Max(‘Expense'[Date])

Once you find this detail click on Card visualization and you will be able to see the latest expense date. You can change format and change fonts as per your requirement.

Second is getting the oldest expense date. To get this click on New Measure and find out oldest expense by writing the following query.

Oldest Expense Date = Min(‘Expense'[Date])

After getting Oldest Expense Date to create visualization and change font and format as per your requirement.

To create Expense Category Analysis, select a debit amount, category and go for Pie Chart as visualization. You will be able to see all the expenses category wise. If you want to get Budget v/s Actual data you need to select a date, debit amount and budget and apply Clustered-column-chart.

You can also do month wise analysis by applying month wise filter.

Drill Through and Analysis Facility

You can drill through visualization by doing right click and clicking on “See Records” you will be able to see all records associated with visualization.

You can also get an analysis facility in Power BI. You just need to right click and select “Analyse”. It will show option such as Explain the Increase and find where distribution is different.

personal finance

Benefits of Power BI Expense Dashboard

Detail Analytical View of Expenses
Deep-dive by going through details
Inbuilt Analysis Facility
Easy Decision making

I hope you liked the method shown above to do Personal Finance Analysis using Power BI. Do share your views in the comment section.

7 Ideas to Make Money Online in India even if you are a beginner

Money & Wealth

Shitanshu Kapadia

-

September 20, 2018

2

make money online

Do you want to make money online in India? Are you searching for ideas to make money online? If yes, you are in the right place. Today I will share 7 Ideas to make money online in India for the beginner.

Making money online is child’s play. There are many people who are living their life with online money. They are making millions of dollars every year. So, there is no shortage of online money. The only thing you need remember is grab the right opportunity and avoid shortcuts of making money.

Here are 7 legitimate ways to make money online for the beginner.

Also Read – 20 Ways to Earn Money Online from Home without Investment

7 Ideas to Make Money Online in India for Beginner

Use Online Learning Platform to get paid

The first idea of making money online is via an online learning platform. There are thousands of people who are using online learning platform for making money.

In this idea, you have to act as an instructor and sell what you already know. You need to create your own course content and upload it online. Once your course is live on the website, students will be able to search and purchase it. On every purchase, you will be paid money. There are many online learning platforms, however, the most famous platforms are Udemy, Coursera & Skillshare.

On these websites, you will find Become Instructor or Become a Teacher link. You just need to signup via this link and upload your course content. You need to know basic of computer and software like screen recorder Camtasia etc.

Become Holiday Advisor to make money online

The second Idea of making money online is by becoming a holiday advisor. Anyone can become a holiday advisor and make money online from home.

A task of holiday advisor is to suggest visiting places, tourist places, sightseeing attraction etc. This is a great opportunity to earn money from home.

You must be thinking about how one can become a holiday advisor and make money online from home? Well, there are two travel websites which offer the facility to earn money as a holiday advisor.

The name of websites that offers holiday advisor as career options are Yatra and MakeMyTrip. The primary eligibility criteria for both cases are good in communication skill, knowledge about laptop or computer, willingness to attend training.

Become Freelance writer to make money online

You can become a freelance writer and make money online. Professional content writers are in big demand by professional bloggers and content marketer.

It is a known fact that content is king for any website. A good and unique content helps an owner to generate a traffic. Increase in traffic means an increase in earning. This is the primary reason that bloggers and website owners are ready to pay money to a good content writer.

If you have skills you can become a content writer and make money online from home. The websites like Fiverr, UpWork offers career as a content writer. Apart from that you can tie up with a blogger and make money.

Also Read – 40 Online Business Ideas with low cost

Become Virtual Assistant

A demand for Virtual Assistant is growing radically. A virtual Assistant job can be done by anyone starting from the student, housewife or expert.

You can earn $10 to $15 hourly in a virtual assistant job. You need to complete simple tasks such as typing e-mail, arranging documents, making specific documents, data entry etc.

The website offering virtual assistant jobs are Up Work, Fiverr, MTurk, Freelancer etc. Before accepting a virtual assistant job you must check the skills required for a specific job offer.

Make Money from websites

One of the best ways to make money online is from websites. Starting from beginner to expert everyone can make money via websites. One of the easiest ways to generate money from a website is via blogging.

There are multiple ways to generate money via a website using blogging. The first method is via Google AdSense or other alternative advertisement networks. Google AdSense pays blogger on per click basis. The second method for earning money via a website is Affiliate marketing. In this method, you need to influence a prospective customer to purchase the product via your website. You will be paid commission for this.

In addition to the above, you can also start your e-commerce website to start earning money.

Make Money from YouTube

YouTube is among one of the best ways to make money online. A unique thing about this method is zero investment. You need to make your own video channel and upload unique videos on the channel.

Once your channel is popular you can apply for the YouTube Channel partner program. This program offers a chance of earning money using YouTube channel from home.

Start Selling Products on e-commerce Platform

If you have an offline store or shop where you are selling various products, you should consider selling them online at e-commerce platform.

Flipkart, Amazon, and eBay are e-commerce websites that offer the facility to become seller online. Once you register on these websites you can start promoting your products for earning money.

Final Thoughts –

I have compiled a list of best ideas about how to make money online in India for the beginner. All the ideas given above are legitimate and proven.

I have already tried a few ideas from above and it worked like charm. All you need to do is hard work and you can earn a lot of money from home.

If you have any queries about how to make money online feel free to post it in the comment section given below.