Hi.
To beat negative return post taxation I am gifting 30 lakh to my sister (no deed). This she shall invest in RBI floating rate bond. As it's linked to NSC rate there won't be interest rate risk also. She shall be going to USA for 6 years this August onwards. Now,
1. As these bonds cannot be bought by NRIs can she buy these?
2. How interest earned on this investment once she goes will be taxed?
3. Can interest credited every 6 months be used to buy FD by her in India?
4. Will she get tax rebate u/s 87A if total interest income becomes 4lakh after she leaves India?
CAclubindia
