Friends,
I am posting this question on behalf of my family friend (who is now 60 years), planning to return back to India for retirement.
He has the following questions
His gratuity is a lump sum money (approx. 30 Lakhs). Because he is a NRI, he is enjoying the benefits of tax free returns all these years.
Now the moment he comes to India (say April 2015), till what time he can hold this NRI account. If he has to convert this into local account in 6 months, he might have to pay tax.
So he wants to minimize the tax implications and has following thoughts:
1. Can he construct a house and show, he is paying the interest earned from the FD\’s as EMI. Will this be applicable if he already has one house?
2. Any other suggestions?
He has 2 sons, first one married and settled in US and second one doing his MS in US. 2nd son would be completing his studies next year. So he has no big commitments/responsibilities. He and his wife hold some mediclaim policies for old age.
Regards
Viswanath