NRIs, your tax planning just got more complex. The Indian government’s new default tax regime under Section 115BAC for NRIs is reshaping how you manage your income, especially if you earn abroad or have ties across borders.
In this blog, we unpack what this change means for NRIs, how it affects your wealth, and where to go for trusted help.
What Is Section 115BAC?
Section 115BAC is now India’s default tax regime — applicable unless you specifically opt out. It offers:
Lower tax rates across income slabs
A higher basic exemption limit (₹3 lakh vs ₹2.5 lakh)
But no major deductions, like under 80C or 80D
For NRIs, especially those managing dual incomes or considering relocation, choosing the wrong regime could mean losing out on lakhs over time.
Why Section 115BAC for NRIs Matters More Than Ever
If you’re an NRI earning in the UK or overseas but filing taxes in India (e.g., on property, interest income, or capital gains), Section 115BAC might apply by default.
Here’s what you should consider:
Do you benefit more from deductions like 80C (PPF, ELSS, etc.)?
Are you aware that you must opt OUT if you prefer the old regime?
Have you reviewed your NRI tax residency status for the financial year?
Many NRIs are unaware that Section 115BAC for NRIs applies by default unless opted out. This lack of clarity could cost lakhs in unnecessary tax payments.
Example: The Cost of Not Choosing Wisely
Imagine an NRI with ₹15 lakh in total income. Under the old regime, with deductions, their taxable income drops significantly. But under 115BAC, they lose those deductions — potentially paying ₹40,000–₹80,000 more in taxes.
Mistake? Choosing the default without understanding the impact. So,
✅ Reassess your tax strategy ✅ Understand your residency status each year ✅ Check if you need to file under old or new regime ✅ Work with an expert who understands UK-India tax implications
For deeper insights into Section 115BAC for NRIs, and to learn which deductions still apply, reach out to financial advisors who understand both Indian and UK systems.
Need Personalised Financial Advice?
If you’re an NRI trying to navigate India’s updated tax policies, you’re not alone. With changes like Section 115BAC, it’s important to stay informed. For more guidance on how these rules impact your UK-India finances, check out our feature on Vibrant Financial Services. Need help deciding which tax regime suits your situation? Visit our NRI Tax Resources for curated content designed for the Indian diaspora.
👉 Contact Kadambi Muralidaran, Executive Director of Vibrant Financial Services, via our business directory on ScottishIndian.com. With over a decade of cross-border financial experience and authorisation from the UK’s Financial Conduct Authority (FCA), Kadambi Muralidaran provides culturally aligned, non-advisory financial solutions trusted by the Indian diaspora.
In a cost-of-living crisis, every pound counts. Whether you’re juggling overdrafts, short-term bills, or trying to stay afloat between paydays, money transfer credit cards can be a powerful but often misunderstood. Money transfer credit cards are a flexible financial tool that allow you to transfer funds from your card directly into your bank account. Whether you’re dealing with overdraft fees, unexpected expenses, or short-term cash gaps, money transfer credit cards can offer a low or zero-interest way to stay afloat.
Here’s what they are, how they work, and why using one wisely could save you hundreds in interest.
Unlike standard credit cards that pay retailers directly, a money transfer credit card allows you to move money from your credit card to your bank account. You can then use that money however you wish — to pay rent, cover an overdraft, or handle an urgent expense.
Think of it as borrowing money from your card to boost your current account but at low (or even 0%) interest for a set period.
This type of card is best suited for clearing expensive overdrafts or managing cashflow issues without resorting to high-interest loans or payday lenders.
Best-case scenarios include:
Paying off your overdraft (which often charges 39.9% EAR!)
Covering emergency bills
Managing temporary cash shortfalls without long-term debt
If you’re considering money transfer credit cards in the UK, always compare the promotional interest period, fees, and eligibility criteria. Some of the top money transfer credit cards offer up to 18 months of 0% interest—ideal if you have a plan to repay on time.
Things to Watch Out For
Before jumping in, it’s important to understand the terms and costs:
Transfer Fee: Usually between 3%–4% of the amount transferred. Some cards offer no-fee promotions.
0% Period: Ranges from 12 to 36 months. You must pay off the balance before this ends.
Credit Score Requirement: You typically need a good to excellent credit score to qualify for top deals.
Can’t Use for Purchases: These cards are not meant for spending. Purchase rates can be higher.
Example in Action
Let’s say your bank account is £1,000 overdrawn and charging 39.9% EAR. You get a money transfer credit card with:
0% for 18 months
3% transfer fee = £30
Now your overdraft is cleared, and you owe £1,030 on the card — but with no interest for a year and a half. As long as you pay off the balance in full before the 0% deal ends, you save significant interest.
Top Tips for Using These Cards
Only Transfer What You Can Repay in Time Don’t take out more than you can realistically repay before the 0% window ends.
Set Up Direct Debits To avoid late payment fees or ruining your credit score, always set up automatic minimum repayments.
Avoid Spending on These Cards These cards often don’t have 0% on purchases. Use them strictly for transfers.
Don’t Withdraw Cash Cash advances from credit cards usually attract hefty fees and high interest from day one.
These cards are ideal for:
People trying to clear expensive overdrafts
Those needing short-term financial breathing room
Anyone with a solid repayment plan and good credit history
Is It Right for You?
A money transfer card can be great for clearing debt or managing cash flow, but it requires discipline. If you’re already struggling with credit card debt, speak to someone.
A money transfer credit card can be a financial lifesaver if used responsibly. Think of it as a strategic tool and not a long-term fix. Used smartly, it can help you dodge interest, manage short-term expenses, and even pay off existing debts faster.
Smart money tips for parents, explained desi-style | ScottishIndian.com
If you’re an Indian parent living in the UK, planning your child’s future probably ranks high on your priority list. Whether it’s saving for university, a wedding, or simply creating a safety net, there’s one golden rule you must follow: save smart, and save tax-free.
At ScottishIndian.com, we’re here to help Indian families in the UK make informed financial decisions, especially when it comes to navigating complex systems like savings, taxes, and children’s education. So let’s break it down — in plain English (with a touch of masala).
What Is Tax-Free Savings for Children?
In the UK, children have a personal tax-free savings allowance — just like adults. But here’s where it gets tricky: the £100 rule.
If you’re gifting your child money and the interest earned from that money in a regular savings account exceeds £100 a year, then the interest is taxed as if it’s your own income — not your child’s. This only applies to money given by parents (not grandparents, uncles, etc.).
💡 ScottishIndian Tip: This is where Junior ISAs and Child Trust Funds come in to save the day.
Option 1: Junior ISAs (JISAs)
A Junior Individual Savings Account (JISA) is one of the best tax-free savings options available in the UK for children.
You can save up to £9,000 per year (2025 limit).
The account is tax-free, meaning no tax on interest or investment gains.
Your child gets access to the money only when they turn 18.
There are two types:
Cash JISA: Low risk. Ideal if you prefer guaranteed returns.
Stocks and Shares JISA: Higher risk, but potential for better returns over time — suitable if your child is young and you’re in it for the long haul.
You can open a JISA through many UK banks or platforms like Hargreaves Lansdown, Vanguard, or Halifax.
Option 2: Child Trust Funds (CTFs)
If your child was born between 1 September 2002 and 2 January 2011, they might already have a Child Trust Fund. These were started by the government with free starter money and are also tax-free.
💡 Pro Tip: CTFs can now be transferred to a Junior ISA if you find better interest rates or investment options elsewhere.
Why Tax-Free Child Savings UK Accounts Matter for Indian Households
Let’s face it — many of us grew up without financial literacy being openly discussed. But in the UK, planning early gives your children a real head start. From tuition fees to future rent deposits, every penny saved counts — and tax savings make a big difference.
🏦 Best Tax-Free Child Savings UK Schemes for Indian Parents:
Open a Junior ISA — it’s flexible, tax-free, and accessible only at 18.
Avoid the £100 rule trap — don’t rely on regular child savings accounts beyond this.
Start early — compound interest rewards long-term savers.
Involve your child — use this as an opportunity to teach basic finance.
Review annually — interest rates change, so keep checking for better deals.
As an Indian parent living in the UK, you’re balancing two worlds — and both value family, education, and a secure future. By understanding the UK’s child savings system, you’re giving your kids not just love, but a financial head start.
At ScottishIndian.com, we’re committed to helping you build a life that honours your roots while securing your future.
📌 For official guidance and live updates on savings rules, visit the full MoneySavingExpert guide.
A Desi Guide to Fair Pay, Work Rights & UK Wage Updates | ScottishIndian.com
If you’re an Indian student working part-time or a young professional starting your career in the UK, understanding the National Minimum Wage is crucial. You’ve likely asked yourself: “Am I being paid the right amount?” With the National Minimum Wage (NMW) update for 2025 now in effect, it’s essential that you know your rights and the current National Minimum Wage rates.
At ScottishIndian.com, we break down life in the UK for Indian migrants, students, and workers in easy, relatable ways. Here’s what you need to know about the 2025 National Minimum Wage, especially if you’re earning while learning or hustling in your first UK job.
💡 What Is the National Minimum Wage (NMW)?
The National Minimum Wage is the legal minimum hourly pay most UK workers are entitled to. It applies to:
Part-time jobs
Zero-hour contracts
Hospitality & retail roles
Internships (in many cases)
If you’re over 16 and working in the UK — yes, this matters to you.
📢 2025 Minimum Wage Rates (Effective from April 1, 2025)
Age Group
Hourly Rate
21 and over (National Living Wage)
£11.44
18–20 years old
£8.60
Under 18
£6.40
Apprentices (under 19 or first-year)
£6.40
🎓 What About Indian Students on Tier 4 Visas?
If you’re an international student:
You can legally work up to 20 hours per week during term time, and full-time during holidays.
You’re entitled to the same minimum wage as UK citizens — no exceptions.
So whether you’re serving coffee in Edinburgh or working at a warehouse in Glasgow, you must be paid at least the minimum wage for your age group.
💸 Why This Matters for the Desi Community
Many Indian students and migrants take up part-time or casual work to support themselves. Unfortunately, some employers try to take advantage — especially if they think you’re unaware of your rights.
⚠️ Red Flags to Watch Out For:
Being paid in cash under the table
Getting less than the legal hourly rate
No contract or payslip provided
Being told “students don’t qualify for full pay” (false!)
If this sounds familiar, don’t stay silent. Report to ACAS or speak to your university’s student support team.
Getting fair pay isn’t just about money — it’s about dignity, legality, and respect. Whether you’re stacking shelves, tutoring, or pulling pints, know your worth and what you’re owed under UK law.
At ScottishIndian.com, we’re here to help Indian migrants in the UK navigate everything from jobs and visas to cultural life and career growth.
📩 Need help understanding your contract or payslip? Head to our Career & Finance section or message us directly — you’re not alone.
Let’s make sure every hour of your hard work counts. 💪💷
A Must-Read for Indian Students, Migrants & Young Renters in Scotland and the UK | ScottishIndian.com
Just moved into your new flat? Between setting up Wi-Fi, buying saucepans, and figuring out how British heating works, you might miss an important step: registering on the Electoral Roll.
At ScottishIndian.com, we don’t just help Indian newcomers in the UK survive — we help you thrive. Whether you’re here on a student visa, a skilled worker visa, or settling long-term, being on the Electoral Roll matters, even if you can’t yet vote in all elections.
Here’s your easy, no-jargon guide to how to register, why it’s important, and the key differences between Scotland and the rest of the UK.
🧾 What Is the Electoral Roll?
The Electoral Roll (or Electoral Register) is the official list of everyone registered to vote in the UK.
But it’s not just about elections! Being on the register:
Helps you build a credit history (essential for getting loans, credit cards, even renting flats later)
Proves your address officially (useful for visa renewals, driving licence applications)
May help in jury service selection (bonus: cultural experience!)
🏠 Can You Register Electoral Roll If You’re Renting?
✅ Yes! Whether you’re renting a flat, sharing a house, or staying in student accommodation, you can and should register at your current address.
Even if you move a lot, updating your Electoral Roll entry helps keep your credit file accurate — which is super important when you’re new to the UK and trying to build a financial footprint.
National Insurance number (if you have one — optional for non-citizens)
You’ll get confirmation by email or post in a few days.
It’s 100% free and only takes 5 minutes!
🇬🇧 UK vs 🇸🇨 Scotland: What’s Different?
In Scotland:
Residents (any nationality, including Indians) can vote in local council and Scottish Parliament elections once registered.
You cannot vote in UK general elections unless you are a British, Irish, or qualifying Commonwealth citizen with leave to remain.
In England:
Only British, Irish, and Commonwealth citizens (with leave to remain) can register and vote in any elections.
EU citizens can only vote in local elections, not parliamentary ones.
💬 ScottishIndian Tip: If you’re eligible to vote locally (e.g., council elections), use it! It’s a great way to influence policies that impact housing, transport, and university life.
💬 Final Thoughts from ScottishIndian.com
If you’re living in the UK — even temporarily — being on the Electoral Roll gives you more than just voting rights. It builds your identity, credibility, and connection to your new home.
At ScottishIndian.com, we believe in empowering every Indian in the UK — not just with survival guides, but with insider knowledge to truly belong.
📩 Need help figuring out your voter eligibility or updating your Electoral Roll after a move? DM in our Forum anytime!
From ballots to better credit scores — we’ve got you covered. ✅
Let’s be honest — taxes aren’t the most exciting topic. But if you’ve recently moved to the UK, started your first job, or are just trying to be a responsible adult (good for you 👏), then knowing how UK Tax work is crucial. Because in the UK, taxes are everywhere — from your salary to your shopping cart to your Netflix subscription.
Here’s your no-stress guide to the main types of tax in the UK you need to know about — without the confusing jargon.
1. 🧾 UK Income Tax
What is it? This is the tax you pay on money you earn — from jobs, freelancing, or even rental income.
How much?
You get a Personal Allowance of £12,570 (as of 2024–25) — that means you don’t pay tax on that part.
After that, it’s taxed in bands:
20% (basic rate)
40% (higher rate)
45% (additional rate for high earners)
💡 Pro Tip: If you’re on a payroll, this is usually deducted automatically by your employer (called PAYE — Pay As You Earn).
2. 🏥 National Insurance (NI)
What is it? NI contributions help fund things like the NHS, pensions, and unemployment support.
Who pays? If you earn over £1,048/month, you’ll likely pay NI automatically from your salary.
Why it matters: Your contributions count towards your State Pension and certain benefits in the future. Yes, it’s adulting at its finest.
3. 🛍️ Value Added Tax (VAT)
What is it? This is a 20% tax on most goods and services — already included in the price of things you buy in the UK.
You’ll spot it on receipts, utility bills, electronics, clothes, and even takeaway. Some items (like children’s clothes and food essentials) are either taxed at a reduced rate or are zero-rated.
4. 🏡 UK Council Tax
What is it? A local tax you pay to your local council for services like bin collection, street lighting, libraries, and emergency services.
Who pays? Usually, the tenant or homeowner. Students are usually exempt, but you must apply for it.
📍 Heads up: This varies by area and property band — so check your postcode on your council’s website.
5. 💰 Capital Gains Tax
What is it? If you sell an asset (like property or shares) and make a profit, that’s a capital gain — and it may be taxable.
When does it apply? Mostly when you sell second homes, stocks, or business assets. If you’re into investing or property, keep this on your radar.
6. 🏢 Corporation Tax & Self-Assessment
Starting a side hustle or business?
If you’re freelancing or self-employed, you’ll need to register with HMRC and pay tax through Self Assessment.
Running a limited company? You’ll deal with Corporation Tax on profits.
Too Long to read This UK Tax Guide:
Taxes are a part of life in the UK, but once you understand the main types — they’re not so scary:
Income Tax: From your salary
National Insurance: For NHS & pensions
VAT: Already added to most stuff you buy
Council Tax: Paid monthly if you rent/own
Capital Gains: For property/investment profits
Self-Employment Taxes: For side hustlers & freelancers
Stay aware. Stay tax-savvy. And remember — you don’t have to be an accountant to handle adulting like a pro. 💼📊
