[KD007]

Originally Posted by LiveLife

Hi

Didnt get your mail

Regards

Hey,

Thanks for the response and the help.

Background - Finalised a job in AD. Need some advice on basics. Some questions are based on what some friends experienced

Work location - Liwa center, Hamdan Street. Frequent travel to Al Wahda Mall, Reem Mall and Deer fields Mall

Stay

-Based on above work requirements where would you suggest to stay (I am thinking Hamdan Street)?. Idea is to have 2 things - Bus stop which supports travel to all these places and also easy access to vegetarian food

-In the event of delay in emirates id (understand it is needed for rental apartment), what are my options for short term stay and how easy it is to find.Anything to watch out for while getting short term rental rooms/studio Joined some FB groups, looks feasible. Any other sources (apart from Bayut,Dubizzle)

Finance - I will carry cash and forex card

- In the event of additional money requirement in AED - reloading forex card is one option, what are my alternatives?
- Sending money back to India - Emirates Bank to NRE should be fine. Any restrictions on my NRE to other person Indian Savings account?

Thanks in advance,
KD007

[NomadSK]

Originally Posted by KD007

Any restrictions on my NRE to other person Indian Savings account?
KD007

I can only comment on this part, there’s no restriction in sending the Money from NRE to Saving account in India to anyone. However, the person receiving the money will get taxed for it. Also, once your status changes to NRI, you can't hold the saving bank account in India.

[LiveLife]

Mod Note : Fixed quotes. For the correct way to quote, please see this thread.

Thanks!

Originally Posted by KD007

Hey,

Background - Finalised a job in AD. Need some advice on basics. Some questions are based on what some friends experienced

Congrats on the new role

Work location - Liwa center, Hamdan Street. Frequent travel to Al Wahda Mall, Reem Mall and Deer fields Mall

Are you moving with family or self? That will help answer a few of queries below

Stay

-Based on above work requirements where would you suggest to stay (I am thinking Hamdan Street)?. Idea is to have 2 things - Bus stop which supports travel to all these places and also easy access to vegetarian food

Hamdan street is a good option. Also Al Muroor; Some famous complexes Liwa center, Emirates tower, Hamdan Tower, etc

-In the event of delay in emirates id (understand it is needed for rental apartment), what are my options for short term stay and how easy it is to find.Anything to watch out for while getting short term rental rooms/studio Joined some FB groups, looks feasible. Any other sources (apart from Bayut,Dubizzle)

You could potentially negotiate with your employer to provide you with accommodation while you await your residential permit. if not you could co-share with someone who has a lease agreement. I had used the first approach. Another option is the Indian diaspora that could help.

Finance - I will carry cash and forex card

There are better options than Forex card as the conversion rates are very poor. Do you have an Indian debit card with a good bank...you could negotiate a competitive conversion rate. I managed a xe rates +15 paise (AED to INR = 22.6+.15 conversion rate)

- In the event of additional money requirement in AED - reloading forex card is one option, what are my alternatives?

You could also en-cash using your Indian debit card (through local ATMs). Make sure you have a Visa or any other global (debit) card. For, Debit card you use the above step re negotiation of forex rates

- Sending money back to India - Emirates Bank to NRE should be fine. Any restrictions on my NRE to other person Indian Savings account?

I am assuming, the process of transfer would be: Your UAE bank to your Indian NRE bank acc and from there to 3rd person Indian savings bank acc. if yes, then the only consideration is again the forex conversion and charges from UAE acc to Indian NRE acc.

Make sure you open a NRE account before you leave. Emirates is a good local bank, but rates negotiation is something you need to do with them. The more activities (salary account + credit card+ OD acc, etc) you do with Emirates the better your negotiation ability. Also depending on your salary, if you are able to attain a private banking status, then the rates become more lucrative, including the forex rates (for inward and outward transfer). On that thought do compare the transfer rates between Emirate and Indian bank as you will have the option of converting AED to INR from UAE itself or get the same converted in India (through your local bank).

Finally, once you have settled, you may also consider transferring funds through remittance FinTechs which offer better rates than the banks. But that later
Hope that helps.

[KD007]

Originally Posted by NomadSK

I can only comment on this part, there’s no restriction in sending the Money from NRE to Saving account in India to anyone. However, the person receiving the money will get taxed for it. Also, once your status changes to NRI, you can't hold the saving bank account in India.

Is it taxable, even if the person receiving the money is sender's parent? (basically me sending money to mom for her expenses)

So can i convert my bank accounts to NRO before my status change (before moving abroad) or should it happen only after status change?

Thanks,
KD

[LiveLife]

Originally Posted by KD007

Is it taxable, even if the person receiving the money is sender's parent? (basically me sending money to mom for her expenses)

So can i convert my bank accounts to NRO before my status change (before moving abroad) or should it happen only after status change?

Thanks,
KD

Hi

Permit me to intervene here, I have done this so speak with experience

Before you leave India: 1) Covert your Indian account to NRE; and/or 2) Open a joint account with your mother;

Once you reach UAE: 1) Open acc with Emirates

For transferring funds to your mother:

1) Transfer from your UAE account to your Indian NRE account.

2) Then transfer from your Indian NRE account to your mother's savings acc or your joint account (with your mother)

The above will help avoid any tax levies on your mother

[NomadSK]

Originally Posted by KD007

Is it taxable, even if the person receiving the money is sender's parent? (basically me sending money to mom for her expenses)

It is perfectly legal to send money to your Mother in India and she will not incur any tax on the transferred amount. However, if she invests this money, then the income she receive will be taxable in her hands.

The money received in an Resident bank account from a relative abroad is known as inward remittance and these remittances are governed by the Foreign Exchange Management Act (FEMA). These will be tax-free only if the money is being transferred for the purpose of providing living expenses or financial support, as a gift, for education, medical treatment, travel expenses, investments and donations.

FEMA also specifies the family members who can receive the tax-free money and include the following:
-Any of the sender’s lineal ascendants or descendants.
-Any of the lineal ascendants or descendants of the spouse.
-Any spouses of the above two.
-Sender’s spouse.
-Brother or sister.
-Brother or sister of spouse.
-Brother or sister of the sender’s parents.

If the money is sent from abroad to anyone other than the above relatives, it will be taxed as income if it is over Rs 50,000 in a financial year.

So can i convert my bank accounts to NRO before my status change (before moving abroad) or should it happen only after status change?

Yes, you can. Just approach your bank with the Passport and valid visa, they will change your account from Resident saving to NRE/NRO.

[Fx14]

Originally Posted by LiveLife

Permit me to intervene here, I have done this so speak with experience

Before you leave India: 1) Covert your Indian account to NRE;

Small correction - existing Resident accounts would have to be converted to NRO (not NRE).

NRE Accounts - if you want to hold or maintain your overseas earnings in Indian currency.

NRO Accounts - if you want to save your earnings from India in Indian currency itself.

Note that the interest earned on funds in NRE accounts is tax free whereas the interest earned in NRO accounts is taxable.

[LiveLife]

Originally Posted by Fx14

Small correction - existing Resident accounts would have to be converted to NRO (not NRE).

NRE Accounts - if you want to hold or maintain your overseas earnings in Indian currency.

NRO Accounts - if you want to save your earnings from India in Indian currency itself.

Note that the interest earned on funds in NRE accounts is tax free whereas the interest earned in NRO accounts is taxable.

Hi

Sorry, don't intend to challenge you but experience is:

1) NRE: is advisable when one relocates from India i.e., relocating for work or for other purposes to another country. In such an account one can remit and repatriate money/foreign funds at their will.

2) NRO: has limitations to repatriation and is often used to store income earned from India. Also, one can transfer money from NRE to NRO but not vice versa without Form 15 CA n CB i.e., CA involvement

https://www.axisbank.com/progress-wi...its-your-needs

In this case NRE acc is advisable as our friend is locating to AD/UAE for work.

[KD007]

Originally Posted by LiveLife

Hi


The above will help avoid any tax levies on your mother

Thank you so much LiveLife, NomadSK and Fx14, this was the toughest to understand as there are several version of info

To summarise, and hope this helps to anyone moving abroad

Before you move - One needs passport and valid visa for this

• Open a new NRE account or convert one of your account to NRE account
• Convert your other existing saving account(s) to NRO account, if any
• Open a Indian joint savings bank account with the person you want to transfer money to (optional)

After you move

• Open a local bank account (say Emirates Bank) in the new country
• Transfer money from Emirates Bank to your Indian NRE account
• Transfer money from your Indian NRE account to the Indian Joint savings bank account. Alternatively you can just transfer money to Mothers savings account (incase you dont want a joint account)
  With this, there will be no tax implications on mom

Two question on the Joint account
1. My mother should be the first holder and i should be the second holder (because of point 2)
2. This account will remain a normal savings account and doesnt get changed to NRO

[KD007]

Congrats on the new role

Thanks

Are you moving with family or self? That will help answer a few of queries below

Just me for the moment

Hamdan street is a good option. Also Al Muroor; Some famous complexes Liwa center, Emirates tower, Hamdan Tower, etc

Thanks.
And how easy/tough is life with buses till one gets driving license . Any app to plan the journey (tried DARBI but guess it will work only once there)

You could potentially negotiate with your employer to provide you with accommodation while you await your residential permit. if not you could co-share with someone who has a lease agreement. I had used the first approach. Another option is the Indian diaspora that could help.

Long story but I am on my own post 21 days of relocation benefit. Will bank on the sharing/Indian diaspora suggestion. Also someone mentioned one can get short term rental room/studio without Emirates ID as well. True?

There are better options than Forex card as the conversion rates are very poor. Do you have an Indian debit card with a good bank...you could negotiate a competitive conversion rate. I managed a xe rates +15 paise (AED to INR = 22.6+.15 conversion rate)

ICICI, HDFC, StanChart. Will check with them. Leaning more towards ICICI for all needs

You could also en-cash using your Indian debit card (through local ATMs). Make sure you have a Visa or any other global (debit) card. For, Debit card you use the above step re negotiation of forex rates

Thanks ICICI Visa will come to rescue here

I am assuming, the process of transfer would be: Your UAE bank to your Indian NRE bank acc and from there to 3rd person Indian savings bank acc. if yes, then the only consideration is again the forex conversion and charges from UAE acc to Indian NRE acc.

I summarised this part (excluding rate negotiation in separate post).

[LiveLife]

Originally Posted by KD007

To summarise, and hope this helps to anyone moving abroad

True. It will remain a local/Indian savings account

I did a similar exercise a few years back. I was informed (correctly) that a joint NRO could create issues, in case I wanted to repatriate from that account.

Hope that helps.

[Samurai]

With the Maldives' storm in a teacup going on, I looked at other famous island starting with M, wondering what they think about India. I was very surprised...

Mauritius

(from wiki)
1) Only African country with full democracy.
2) Only African country with very high Human Development Index and the World Bank, classifies it as a high-income economy.
3) The country is a welfare state. The government provides free universal healthcare, free education up through the tertiary level and free public transportation for students, senior citizens, and the disabled.
4) It is consistently ranked as the most peaceful African country.

It is the only country in Africa where Hinduism is the most practiced religion. That means most Indians should find it easy to blend in easily. How come it is not a popular destination for emigration for Indians?

[GutsyGibbon]

Originally Posted by Samurai

...
Mauritius

It is the only country in Africa where Hinduism is the most practiced religion. That means most Indians should find it easy to blend in easily. How come it is not a popular destination for emigration for Indians?

It's 60kms x 40 kms in size. Offshore banking and tourism are key drivers of economy. Unless someone wants to work in hospitality industry, can't think of other jobs. Island living is great for a week, while it's sunny. Other times it's a jail sentence.

[LiveLife]

Originally Posted by Samurai

With the Maldives' storm in a teacup going on, I looked at other famous island starting with M, wondering what they think about India. I was very surprised...

Mauritius

(from wiki)
1) Only African country with full democracy.
2) Only African country with very high Human Development Index and the World Bank, classifies it as a high-income economy.
3) The country is a welfare state. The government provides free universal healthcare, free education up through the tertiary level and free public transportation for students, senior citizens, and the disabled.
4) It is consistently ranked as the most peaceful African country.

It is the only country in Africa where Hinduism is the most practiced religion. That means most Indians should find it easy to blend in easily. How come it is not a popular destination for emigration for Indians?

Hi..

You are very right about the democratic and social state of the country.

My experience of the country (both professionally and personally)

1) Tourism is the main source of revenue for the government

2) The country is also a base/sub base for financial organisations, wherein a lot legal and grey financial structures exist, primarily to park or invest funds from there on; this surely cant be happening with out the support of the govt. This has many potential implications

3) The size and demographics of the country don't make it attractive for major investments beyond the two above criteria.

Personally:

1) It a very beautiful island

2) Very warm people, who mostly are of Indian origin

3) Is a good base for extending one's travels to other African nations, we travelled from there to SA and Seychelles

4) It is comparatively expensive, mostly because of its sourcing and size issue

5) Its a great place if you love the waters and related activities, under sea walking, snorkelling, sea water fishing, jetting, sky diving, scuba, etc

6) Food choice can be limited but abundant Indian food

7) Not a great place to shop, but good for local shopping experience i.e., raw pearls, shells, etc

8) Is a safe place comparatively, for family travel

9) Transpiration is mainly cabs for tourists

10) Is definitely not Bali or other similar islands of SEA

Overall, nice place for a few trips but not much potential for emigration. But

[Samurai]

Originally Posted by GutsyGibbon

Island living is great for a week, while it's sunny. Other times it's a jail sentence.

Ah, so it is like a hill station. Great for visiting as vacation, but not for settling down.

However, for those who are used to such village or small town living, it could be still an option.