Will Indian young ones lose 18% of their EPF with new tax as per Budget 2016?
Are these calculations correct? These are approximate calculations and are with the assumption that entire corpus will be taxed. The assumption was valid as the wording in the budget speech was not very clear. Subsequently the finance ministry has clarified that only interest generated will be taxed and not the contribution. There are no new calculations done with this assumption. Edit: As per communication from finance ministry this proposal is on hold.
"This is the best tl;dr I could make, [original](http://uk.reuters.com/article/uk-india-us-medtech-exclusive-idUKKBN19A0SE) reduced by 84%. (I'm a bot) ***** &gt; NEW DELHI A group of U.S. lawmakers has backed medical device makers by urging India to reconsider its decision to cap prices of heart stents, raising the issue ahead of Prime Minister Narendra Modi&amp;#039;s visit to the United States later this week.  &gt; In a letter sent to the Indian ambassador to Washington last month, and seen by Reuters, 18 members of Congress said they were &amp;quot;Troubled&amp;quot; by the price cap, warning that it could deter firms from launching new medical products in India.  &gt; Boston Scientific - which also has a research base near New Delhi - sought a higher price for one of its stents but a government panel declined the request.   ***** [**Extended Summary**](http://np.reddit.com/r/autotldr/comments/6i53ir/a_group_of_us_lawmakers_has_backed_medical_device/) | [FAQ](http://np.reddit.com/r/autotldr/comments/31b9fm/faq_autotldr_bot/ ""Version 1.65, ~147648 tl;drs so far."") | [Feedback](http://np.reddit.com/message/compose?to=%23autotldr ""PM's and comments are monitored, constructive feedback is welcome."") | *Top* *keywords*: **price**^#1 **India**^#2 **medical**^#3 **stent**^#4 **device**^#5" "No, you do not need an OCI card to continue to have an NRE or NRO account. You are now classified as a PIO -- Person of Indian Origin -- (and you don't need to have a PIO card issued by the Government of India to prove it) and are entitled to use NRE and NRO accounts just as you were when you were a NRI (NonResident Indian).  But, you should inform the banks where you have NRE and NRO accounts that you have changed citizenship, and they may need to go through their KYC (Know Your Customer) process with you all over again.  If you don't get an OCI Card, you will need to have an Indian visa stamped into your new US passport to visit India, and please do remember to send your Indian passport to the nearest Indian Consulate for cancellation. Keep the surrender certificate and cancelled passport in your safe deposit box forever; your grandchildren will need it to get visas to visit India. (My granddaughter just did). If you do get an OCI Card, you will need to have an OCI stamp put into your new US passport, and when you renew your US passport, you will need to get the new one stamped too (and pay the fee for that, of course). You cannot enter India with just an OCI Card and a US passport without the OCI stamp in it; that stamp is vital. If you move from one residential address in the US to another,  you will need to  get a new OCI Card issued because, unlike the US ""green card"", the OCI card has your residential address on it. Once again, a fee is involved.  All these processes take many weeks because the whole paperwork has to go to the Ministry of External Affairs in New Delhi, and meanwhile, your passport is not available to you for a trip to Europe or Japan or Taiwan or China if you need to go there on business (or for pleasure)." "If you have wage income that is reported on a W2 form, you can contribute the maximum of your wages, what you can afford, or $5500 in a Roth IRA.   One advantage of this is that the nominal amounts you contribute can always be removed without tax consequences, so a Roth IRA can be a deep emergency fund (i.e., if the choice is $2000 in cash as emergency fund or $2000 in cash in a 2015 Roth IRA contribution, choice 2 gives you more flexibility and optimistic upside at the risk of not being able to draw on interest/gains until you retire or claim losses on your tax return).  If you let April 15 2016 pass by without making a Roth IRA contribution, you lose the 2015 limit forever.  If you are presently a student and partially employed, you are most likely in the lowest marginal tax rate you will be in for decades, which utilizes the Roth tax game effectively.   If you're estimating ""a few hundred"", then what you pick as an investment is going to be less important than making the contributions.  That is, you can pick any mutual fund that strikes your fancy and be prepared to gain or lose, call it $50/year (or pick a single stock and be prepared to lose it all).  At some point, you need to understand your emotions around volatility, and the only tuition for this school is taking a loss and having the presence of mind to examine any panic responses you may have.  No reason not to learn this on ""a few hundred"".  While it's not ideal to have losses in a Roth, ""a few hundred"" is not consequential in the long run.   If you're not prepared at this time in your life for the possibility of losing it all (or will need the money within a year or few, as your edit suggests), keep it in cash and try to reduce your expenses to contribute more.  Can you contribute another $100?  You will have more money at the end of the year than investment choice will likely return." If you are still Indian Citizen for Tax purposes, then all your Global Income is taxable [There are certain exemption if you are in certain professions]. So even if you transfer or not transfer the funds to India, it is taxable in India. If you are getting a per day allowance, its exempt, this has to be looked more as expense reimbursed. If you are saving from per day allowance, well whatever you have save is to be declared as additional income and pay tax accordingly. If you are NRI for tax purposes, there is no limit on the amount of funds that you can send to India. Note that it would help to transfer funds into a separate NRI/NRO account to ensure traceability and ease of taxation. The business may not have paid any direct tax towards profit. However it would have paid tons of indirect tax like Sales tax / Service tax on the goods / services rendered. The raw material that he has purchased from vendors [leading to demand] would have been taxed. The salary he has paid [hence employees paying personal tax]  So essentially even from a loss making venture, the Govt has received enough tax money. "This link:  http://www.ifs.org.uk/fs/articles/ewgm_feb93.pdf (from 1996, describing the proposals for the change) seems to answer the question in its description of ""the current system"" - they had to file business accounts and it was calculated by the Inland Revenue from that." "This is the best tl;dr I could make, [original](http://www.bbc.com/news/world-asia-india-40453774) reduced by 50%. (I'm a bot) ***** &gt; India has replaced its numerous federal and state taxes with the Goods and Services Tax, designed to unify the country into a single market.  &gt; India says introducing GST will cut red tape and increase tax revenues, fuelling economic growth.  &gt; &amp;quot;No country of comparable size and complexity has attempted a tax reform of this scale,&amp;quot; Harishankar Subramanian, of Ernst and Young previously told the BBC. Under the new system, goods and services will be taxed under four basic rates - 5%, 12% 18% and 28%. Some items like vegetables and milk have been exempted from GST, but will still be subject to existing taxes.   ***** [**Extended Summary**](http://np.reddit.com/r/autotldr/comments/6kp8xz/indien_ers\u00e4tter_en_rad_skatter_med_ny_nationell/) | [FAQ](http://np.reddit.com/r/autotldr/comments/31b9fm/faq_autotldr_bot/ ""Version 1.65, ~157063 tl;drs so far."") | [Feedback](http://np.reddit.com/message/compose?to=%23autotldr ""PM's and comments are monitored, constructive feedback is welcome."") | *Top* *keywords*: **Tax**^#1 **Services**^#2 **Goods**^#3 **GST**^#4 **existing**^#5" It's past midnight so we'll continue this tomorrow.   Just two things for now: 1 funny how you picked the highest estimate for the US and the lowest estimate for the UK  2 if anyone expresses wishful thinking it's you. None of the benefits you mentioned will happen. I live in a country with UH. You'll still have the same problems, except that you get a hefty tax increase on top and end up shoving 50-60% of your income down the state's throat in addition.