Hello,
I currently own a proprietor firm which provides services to US based businesses & receive my income in USD cheques, which I deposit in my Indian Bank Account and is remitted in rupees. I fall in the 30% bracket since the last couple of years. However, I will be shifting abroad for my Masters in Sep 2012 for a minimum period of 2 years. However, I expect the income to flow through during my course of studies and will remain in the 30% bracket.
My questions are:
1) What kind of bank account do I need to setup to ensure that my deposits are made properly and I can use it abroad as well.
2) Does it make sense to take an education loan? I can pay the entire expenses of the education , around 20 Lakhs, using my savings. However, I am thinking that will i get tax deduction and benefit more by paying off a loan, taking into account the tax savings.
3) What kind of taxation will I fall under from next year (NRI??) after my shift and how do I plan it.
4) I would like to continue investments [deposits, funds etc] even when I am abroad studying to build my corpus. What do you suggest for this?
5) I have applied to HDFC Click2Protect term insurance and have undergone medicals, and hopefully will receive the policy before I leave abroad. I have specified to them that I will be going abroad in my application. Are these policies valid outside India? I am asking this since I further intend to take a 50L policy with LIC as well.
Thank you for your time and consideration.
Thanks,
Ashish.