I sold my company, how do I secure my family’s future?

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Life is beautiful and exciting. It also comes with a lot of uncertainties. We cannot do anything about life’s uncertainties, but we can prepare for them.

We all have financial goals, and most of them are mandatory. For example, you need to save and invest for your children’s education. Also, you have to create a corpus for your retirement. These are financial goals you cannot avoid or delay. Then you must be planning for a foreign vacation with your family or buying a holiday home in the mountains.

You can only achieve these goals through financial planning. It is not only about achieving the goals. It is also about achieving them on time and preparing for the worst-case scenario(financial security). Financial planning takes care of every aspect of your financial goals.

Financial planning is a must if you have just sold your company and want to secure your family’s future.

What is the financial plan, and if you have sold your company, how can you secure our family’s financial future?

Planning is critical for humans in every aspect of life. When it comes to money, it gets even more essential. There are enough variables that can affect you if not planned well when it comes to money.

A financial plan is an evaluation of your current pay and future financial needs. It considers your existing assets, current income, future requirements, and withdrawal plans in the future. The financial plan is also about protecting you and your loved ones from life’s uncertainties and giving your financial security.

If you have sold your company and want to secure your family’s financial future, you need a detailed financial plan. You cannot risk the future of your loved ones with random investments.

Why is Financial Planning Necessary to Secure Your Future?

Let us understand the need for financial planning. Assume you want to travel from Delhi to Mumbai for a vacation. Can you get up one morning and travel? No, you cannot.

You have too many things to plan before traveling to Mumbai. First, you need to decide your budget, and based on budget, you will select the mode of travel. Second, you will choose the dates and then book the tickets and hotels as per the dates. Next, you will plan all the locations you plan to visit in Mumbai.

There is so much planning required for a week’s vacation. Can you imagine the planning needed for life? There are so many variables to life’s plan. You need to understand them to secure your future. Some of them are as below:

Inflation – Most people fail to understand how inflation is the biggest destroyer of purchasing power. You can purchase your dream car today at Rs 10 lakh, but the same will be available for Rs 15 lakh in the future because of inflation. Financial planning helps you bring inflation to your calculations.

Emergencies – Be prepared with money matters, or you will regret it. You can plan everything in life, but there can be unavoidable and unexpected events before you. They can eat up your savings. You prepare for the unexpected also with family financial planning

Retirement – One of the biggest goals for everyone is retirement. You would want to have a comfortable second inning of life. Creating a retirement corpus requires a lot of planning, and a financial plan covers it.

A financial plan is a must for every individual, and you should not postpone it any longer.

Five ways of Protecting the Financial Future of your family

You can protect your family’s financial future by following techniques:

Set SMART goals – The first step in financial planning is to set financial goals. Your financial goals should be SMART. It means they should be Specific, Measurable, Achievable, Realistic, and Timely. The other important aspect is to have clear short, mid, and long-term goals. You should be able to tag each financial goal in one of the above three categories.

Know your finances and get organized – Most people have no clue where the money goes by the month-end. In financial planning, you know everything related to your finances. You should know all your accounts and income streams. Secondly, you should know where and how much money flows out of your bank accounts. You have to get organized with your money.

Build emergency corpus – Your first goal should be to create emergency funds. Prepare for events like a medical condition or job loss. Hence, having an emergency corpus is a must. You should have 6 to 12 months of your monthly salary in your emergency corpus.

Clear off debt – If you have sold your company and have bad debt, you should clear it off. It could be a credit card bill or car loan. Bad debt chokes your budget and becomes a hindrance in your family’s financial future.

Insurance product – Just like financial planning is a must for every individual – insurance products are also a must. As mentioned earlier, life is full of uncertainties. You can prepare for them by buying the right insurance products. You need to have health insurance that covers critical illnesses and life insurance to secure the future of your loved ones.

What are the steps to involve the whole family in financial planning?

Financial planning is not an individual responsibility, and hence you need to involve your family members in the planning. Below are the steps to follow:

Talk about money – The biggest problem in an Indian household is that money is a taboo topic – money is not discussed among family members. When a family’s financial goals are designed, everyone should be involved and agree with the financial goals.

Everyone should stick to a budget – You can only achieve financial goals if every family member sticks to the budget. You should encourage young ones too to save from their monthly budget. It will keep everyone motivated in the family.

Identify responsibilities – You should share the financial responsibilities within the family. If you are the only breadwinner in the family, you should still invite your spouse in decisions related to money. Let her take care of specific household expenses.

Have fun in the process – To secure your family’s future, you should not compromise the present. Your focus should not only be on saving. Spend wherever required and enjoy life with your family. With financial planning, you invest in good investment instruments, and hence you do not have to stress too much on saving.

Investing options in Long-Term Goals

For your long term goals, you can invest in the below financial instrument:

You have sold your company and have a corpus in hand. With the cash in hand, your short and mid-term goals are sorted. However, you still have to plan for your long-term goals. Your money will lose its value over time if not invested intelligently.

  • PPF (Public Provident Fund)
  • Stocks and Mutual funds
  • ULIPs (Unit Linked Insurance Plan)
  • Bonds
  • Gold

Which options to pick and how much to invest in each category varies from person to person. Right Horizons has years of experience in Financial Planning. We understand each individual is different, and so are his financial needs. We help you invest in the right financial instrument, the right amount, and at the right time. Our financial planning services track, monitor, and ensure your goals are always within your reach.


  1. How to secure your family’s financial future?

You can secure your family’s future through proper financial planning. You should hire an expert that can help you organize your finances, create a roadmap of your financial journey and help you achieve all your goals with financial security.

2.  How to be financially stable with low income?

Low income is not an excuse for not investing or doing poorly financially. You can have financial stability irrespective of your income. Create a budget that works for you. Even if you can save a small percentage, do it. Invest in financial instruments that can grow your money by giving you high returns.

3. How to be financially independent at 30?

To become financially independent at 30, you should start your financial journey without delay. The first thing you need to do is get rid of all your debts. Then create emergency funds, secure your life by buying insurance plans and start investing in instruments that can create wealth before you turn 30.

Returning NRIs: Will my NRE bank fixed deposits be tax-free on return?

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Indians staying abroad plan to make investments in India. However, when it comes to tax implications, they are clueless. Every investor should know the tax implications before investing money in any financial instrument. It helps them understand their actual or net returns. In this article, we discuss one of the least risk investment options for NRIs (Non-Resident Indians). We will also talk about the tax implications for such investments.

Who is NRI, and who all comes in the NRI category?

NRI stands for Non-Resident Indian. If you are an Indian citizen and live in a foreign country for more than one hundred and eighty-three (183) days in a financial year (FY) for work or business, you come under the NRI category.

NRI is different from PIO. PIO means Person of Indian Origin – an individual who is Indian by birth but lives abroad falls in this category.  A person who has taken foreign citizenship can also be a PIO.

What are NRE Fixed Deposits?

A fixed deposit is a savings scheme wherein you invest your money for a fixed period in return for a guaranteed fixed return. An NRE fixed deposit is a fixed deposit opened by NRI. An NRI can open an NRE fixed deposit in a single holding or joint holding format. 

After returning to India, your NRI status will change to RNOR (Resident but not Ordinarily Resident) status. Your NRE deposits can remain as it is – you don’t need to do anything till maturity.

Bank account options for returning NRIs

NRIs returning to India will have to go through different processes to transfer their assets and funds to the resident account from a foreign account. To help the NRIs in the process, the Reserve Bank of India allows the returning NRIs to open Resident Foreign Currency (RFC) accounts. The money in the RFC account is held as foreign currency. Hence, it is not open to the risk of foreign exchange fluctuation. Every NRI returning to India should open an RFC account for hassle-free transfer of assets.  

Why choose NRE fixed deposits?

A few features of NRE fixed deposits accounts are:

  • The deposits are to be made in Indian Rupee.
  • You can withdraw your funds into your NRE account in any foreign currency.
  • NRI does not have any NRI tax liability on his NRE fixed deposit account. It means the interest you earn on the deposits is non-taxable in India.
  • Tenure is between one year and ten years.
  • You can close the FD any time from the time of opening it.
  • Most banks give you loans against NRE deposits and allow 90% overdrafts on NRE deposit accounts.

What are NRE fixed deposit rates?

The NRE fixed deposit rates vary from bank to bank. The rates also vary as per the tenure of the fixed deposit. For example, Yes Bank offers 6.25% for one-year fixed deposits and 6.75% for five years and above duration. Other banks only offer around 5% for the same tenure. 

At present, the NRE fixed deposits rates vary between 4.50% and 6.75% depending on the bank and the tenure.

What are the benefits of NRE fixed deposits(FD) accounts?

  1.  Flexibility – You have to deposit money in the Indian currency, but most banks accept any currency for conversion. It means you don’t have to go through the conversion process. You can fund your account with any convertible currency and open an NRE fixed deposit account.

2.  Low minimum deposit account – You can open an NRE fixed deposits account for as low as Rs 25,000 with most banks (it can be different for different banks). It gives you the option to open multiple NRE FDs with small amounts.

3.  Higher rates – The NRE FD interest rates offered by the banks are higher than a regular savings account. If you are sending money to India and keeping the amount in a savings account, it is always better to open NRE FD and earn more interest.

4.  Hassle-free renewal – If you invest for the long term, you don’t have to worry about the documentation or form submission to renew your NRE fixed deposits. Your principal and interest are auto-renewed on maturity.

5.  Competitive exchange rate – As mentioned above, you can convert any currency to INR and open an NRE fixed deposit  accounts. The rates offered by the banks for conversion are one of the best in the market.

6.  Flexibility – You have to deposit money in the Indian currency, but most banks accept any currency for conversion. It means you don’t have to go through the conversion process. You can fund your account with any convertible currency and open an NRE fixed deposit account.

7.  Tax benefits – The interest you earn on your deposits is not taxable in India.

8.  Loan options – Most banks give you attractive loan options on NRE fixed deposits accounts. You can get a loan of up to 90% of your deposits at attractive interest rates.  

Tax Planning for NRIs Returning to India

Indian who are staying outside India continue to invest in India for a number of reasons. India is an emerging market, and the potential growth is better than other countries. 

NRIs invest in India, but the calculations get complicated when they return to India. Every NRI needs to do tax planning before returning to India. It will help them in ways they may not be aware of today. For example, the majority of NRIs are not aware of the benefits of filing taxes when they return to India. It helps them claim a refund, or in case they have losses, they can carry forward it for future years.

Right Horizons has years of experience in doing tax planning for NRIs. Tax planning is a bit complicated for NRIs, and Right Horizons’ goal is to make it simple for every NRI. Whether you want to reduce your tax liability or you have queries related to property taxation, Right Horizons helps you at every step for every category.

Right Horizons not only help its client with the investment but also with efficient tax planning services. NRI Taxation is one of the core areas of expertise for Right Horizons with Advance and Capital Gain Taxation.


  1. How are NRIs taxed in India?

Different financial instruments are taxed differently for NRIs in India. Though NRE FDs are tax-free, other investment options are taxed. NRIs should check the tax implication before making an investment.

  1. Does NRI have to pay tax for interest on NRE fixed deposits?

No, interest earned from the interest in NRE fixed deposits is exempt from tax in India.

  1. Is the NRE FD taxable after returning to India?

As long as you are NRI, the interest earned by you on the NRE FD is exempt from tax. However, if you have returned to India, you should inform the bank about your NRE account and make a request to re-designate your account as a resident foreign currency (RFC) account. It is important to note that the RFC account bears a lower interest rate than NRE FDs.  Once this process is complete, the interest you earn on your NRE fixed deposits will be taxable.

  1. If NRI returns to India, should fixed deposits be closed?

The first step is to determine the right of residence every financial year. Once you have it, you need to go through the tax filing process. Things to consider while filing tax – choose the right ITR form, check the compensation against double taxation treaties, etc.

  1. How to file an Income tax return for NRI?

Once you return to India, you become an Indian resident. You can no longer maintain an NRI bank account or avail the benefits NRIs get on investment in India. Hence, convert or re-designator close your NRE account within three months of your return. Your fixed deposits can remain as it is till maturity.

Your last chance to avail these Tax Benefits

Tax planning image by RightHorizon Bangalore

Your last chance to avail these Tax benefits

You are aware of the deadlines for submitting investment proof to the employer. You’re also aware that failing to submit proofs can result in greater TDS and lower take-home pay. Still, procrastination is a hard habit to break, and you may find yourself in the same scenario as last year.

We agree that performing all the math and making tax-saving investments is not fun. Leaving tax preparation to the last minute, on the other hand, may lead to costly investment mistakes.

Take heart if you’re one of the people reading this who hasn’t yet prepared their taxes. YOU ARE NOT ON YOUR OWN.

In this blog, we’ll share with you four basic yet effective methods that Right Horizons Suggest its clients to help them finish their tax planning quickly while also avoiding costly blunders. So get a cup of coffee and continue reading…

Tip #1: Make sure you know how much tax you owe for the year.

The first step is to figure out how much income tax you owe for the year. Only if you owe a net tax will you be faced with the issue of tax planning.

When computing your income tax due, you must take into account all of your earnings as well as all of the deductions available to you under the tax code. The following are some of the common deductions that people overlook:

Tuition fees must be paid. Premiums for life and medical insurance Allowance for House Rent Donations to vetted organiz

Make sure you have adequate proof/documentation for the deductions you want to claim, such as a lease agreement, gift receipts, premium certificate, and so on. This will assist you in the event of a future tax assessment.

Tip #2: Examine the differences between the old and new taxing regimes.

You have an optional new tax framework in place, which is a substantial departure from last year’s Budget. What Right Horizons suggest is take new regime calls for a lower tax rate and fewer deductions. You can make the necessary calculations and select the most favorable regime for you.

Let’s say you’re a somewhat inexperienced investor with insufficient capital to make new investments. In that situation, the new tax system may be beneficial.

Assume, that you are a seasoned investor who has been making tax-saving investments every year and has a current home loan. In that instance, you may find that the old government is more helpful to you than the new regime.

Remember: If you are new to investing and taxation & this analysis seems too much work for you, Right Horizons can help you do your last-minute tax planning 

Tip #3: Fill in the gaps in your insurance coverage first.

Assume you need to make new investments in order to lower your tax liability. Here, you should make sure you have enough insurance protection in the form of the following policies:

Term life insurance is a type of life insurance that lasts for

Self-insured, family-insured, and parent-insured

Preventive health examination

For young investors, making insurance a top concern is critical. If a breadwinner dies unexpectedly or a medical emergency strikes the family, the wealth corpus will not be adequate to safeguard the family’s future. Insurance acts as a solid foundation upon which you can construct your money castle.

Tip #4: Conduct a comprehensive analysis before making an investing decision:

It’s not only about saving money on taxes when it comes to tax-advantaged investments. It should also assist you in building long-term wealth and meeting your financial objectives comfortably. Consider the following variables before making a tax-saving investment:

Determine your financial objectives and when you will require funds – The longer you have before you reach your goal, the more risk you can accept.

Decide how much risk you’re willing to take. Simply put, this is the percentage of your investment you’re willing to keep in equity in order to sleep soundly at night.

To acquire a holistic view of the investment, consider the risk, lock-in time, liquidity, taxation, and other factors, as well as if the investment is consistent with your financial goals. Don’t be swayed solely by profits.

If you don’t have enough time to perform all of the above, consider investing in ELSS and PPF. Keep in mind that ELSS is a long-term investment, therefore don’t cash it out before 5 years. PPF, on the other hand, has a 15-year lock-in period.


Tax planning ahead of time can help you prevent a slew of costly financial blunders that can’t be reversed. Even if you’ve left it too late to arrange your taxes, there are still simple last-minute financial steps you may do. The procedures will assist you in reducing your risks and ensuring that your investments are in line with your financial goals.

New Taxation Regime – Budget 2022-23

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This year’s budget has not introduced any major changes but there are a few changes that we have to look out for and we will be looking at a few of those here.

The Budget 2020 introduces a new regime under section 115BAC giving individuals and HUF taxpayers an option to pay income tax at lower rates. The new system is applicable for income earned from 1 April 2020 (FY 2020-21), which relates to AY 2021-22.

In her Budget 2022, Finance Minister Nirmala Sitharaman did not mention any changes to tax slabs or rates. The diligent salaried taxpayer’s high hopes have been dashed. As a result, if the income tax rates and slabs remain unchanged, an individual taxpayer will continue to pay the same tax rates regardless of the tax regime adopted for FY 2022-23. If we talk about tax planning, Right Horizons are well updated with the new taxation slabs and can help you in your tax exemptions. 

Talking about crypto currency and its taxations, which has also raised a little debate in the market after the budget. Many people have breathed a sigh of relief after hearing something from the authorities on crypto. Trading and transacting in crypto-currencies, NFTs, and other digital assets is now formally legal. Taxation, on the other hand, is a source of concern. Cryptos have been declared as a virtual or digital asset, and will be taxed at 30% on income arising from such transfers, with no deductions or allowances except the cost of acquisition. Losses from such transfers will also not be allowed to be set off against any other income under any head, and gifts of digital assets will be taxable in the hands of the recipient, with a 1% TDS. To summarize, whatever you do with cryptocurrency, you must pay a piece of it.

Surcharge on long-term capital gains on any asset is restricted at 15%, which essentially implies that the surcharge cannot exceed 15% of the total net tax liability.  Similar to income tax and surcharge, health and education cess will not be allowed as a business expense.

Now coming on to the government employees, state government employees can guarantee exclusion of NPS at 14% of manager’s commitment which earlier was just 10%. The custom obligation on cleaned jewels and gemstones are decreased by 5%. This essentially implies soon the costs of a similar will be a lot of lower. There is likewise an obligation concession on import of parts of telephone chargers, transformers, calfskin, bundling boxes, and so forth which additionally thus will diminish the costs of these products. While the costs of Umbrellas will increment as the obligation on umbrellas has been expanded by 20%.

For NRI's

Non-residentials getting Income from seaward subordinate instruments or subsidiaries gave by an offshore banking unit, pay from sovereignty and premium because of rent of the boat, and pay got from portfolio the executives administrations in IFSC will be absolved from charge.

Other Points

These are the amazing presentations by the finance ministry in the current year’s financial plan, the market during the spending plan responded reasonably decidedly shutting in sure of +1.31%. Hopefully that the ricochet back proceeds and markets rise much higher.

The financial budget had more accentuation on the long future that is in front of us. It has additionally presented a battery trading strategy, for setting up EV stations. Movement, special visualizations, gaming and funnies area offers gigantic potential to utilize youth.

About Tax Planner:

Timely tax planning helps to avoid many costly financial mistakes which cannot be undone. Right Horizons helps you for your tax planning and make sure that you can get as much benefit as possible but however if you are a bit late in planning your taxes, you can take some simple last minute financial steps by consulting us. Our these steps will help you minimize your risk and will ensure that your investments are aligned with your financial requirements. 

Financial Planning Tips to Fulfil Your Child’s Overseas Education Dream

Financial Planning Tips to Fulfil Your Child’s Overseas Education Dream

As parents, you must have always encouraged your child to study hard for an excellent, bright future. And if your child has been dreaming to get into a world-class university abroad, you don’t want to compromise on that dream because of low funds.  To ensure that your child receives the very best and also does not have to get buried under loans in future, you should have a strong financial plan in place. Considering your current income, savings, and the inflation rate; the earlier you start accumulating funds, the better. Here are 6 things to keep in mind while planning finances to support your child’s overseas education dream:

1. Estimate The Entire Cost

The first thing you will probably think about is the college’s tuition fees and how to pay them. But you also need to factor in other expenses such as accommodation, food, utilities, and transportation. After all, your kid will have to settle and start a new life overseas.  Therefore, to make the transition as easy as possible, take a crack at the budget and break it down into smaller manageable goals.

2. Evaluate The Best Sources of Funds

Once you’ve got a budget, check all the sources of funds including your savings that could be from PPF, mutual funds, or fixed deposits. The foremost thing to do is try and apply for scholarships and grants that can take care of at least half your expenses. Next, check the available education loans for studying abroad to help you manage the remaining amount.

3. Plan Your Investments

Once you analyze your current assets and liabilities, you will get an idea of how much more you need to save. Considering the inflation rate, it is better to invest your money and let it grow over the years. And if your investment horizon is lengthier than 10 years, it is imperative to diversify your investments. While FDs, gold, real estate, and equity mutual funds are always an option, it is worth considering dollar investments like foreign stocks for abroad studies depending on your risk appetite.

4. Review The Investments Periodically

It is good to review how your invested money is performing from time to time given the market situation. If any of your investments are not performing as desired, you can make changes to them in time. For example, if the price of gold suddenly starts dipping or a mutual fund investment is not giving expected returns, you will need to shift your invested money elsewhere.

5. Get Insured

You can earn, save, and invest as long as you are healthy. But what if you meet with a sudden accident or have an untimely demise?  This is where life insurance, a term-end policy, and health insurance come in handy. Plan for an insurance sum that can at least take care of your child’s tuition fees in case of your absence or inability to earn.

6. Shift Your Portfolio to Less Risky Avenues

If you think you have accumulated a substantial amount, consider shifting that investment to minimum risk avenues to secure it rather than losing it due to market instability.  Examples of less risky avenues include savings accounts, money market accounts, FDs, governments bonds, and debt mutual funds as these options are highly safe and provide good liquidity due to the least market exposure.

Many parents jeopardize their present needs or future funds to fulfil their child’s dreams, but that is not the right way to go about it. Instead, keeping the above things in mind, wise up on how to make a solid child education plan which includes a budget, study loan for abroad, investments, and insurance.  The importance of starting early cannot be emphasized enough – the earlier you start, the less stressful it will be for you to accumulate the required sum of money. Also, consider sharing the responsibility with your kid once they are in college. Explain to them the value of earning and saving money for their own benefit.