Importance of form 67 for NRIs

An individual who was in India for more than 182 days in any financial year needs to pay tax in India on his global income. To avoid any burden on the taxpayer, the Indian Government allows such person to take credit of taxes paid outside India, subject to various conditions.

Once the taxpayer calculates the tax credit he is entitled to, it becomes very important to file form 67 to avail such credit. Non filing of form 67 before filing the return of income can lead to disallowance of foreign tax credit. In such a situation, the taxpayer will need to pay taxes twice, ie, once outside India and then again in India.

Hence, it is very important for people, specially salaried employees with salary income from India as well as abroad to make sure that all the required forms are filed to avail the benefits provided by the Indian tax laws.

Tax Planning through Keyman Insurance

What is Keyman Insurance

Keyman insurance is defined as an insurance policy where the proposer as well as the premium payer is the employer, the life to be insured is that of the employee. The employer may be a company, a partnership firm or even a sole proprietorship. The premium paid by the employer is a tax deductible expense and the maturity claims are taxable in the hand of the receiver, which may be the employer or the employee. Keyman insurance gives a 10x insurance cover and in case of any mishappening, the company gets 10x of annual premium paid as compensation.

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