Ans: USD fixed deposits function like regular fixed deposits but are held in US dollars (USD) instead of Indian Rupees (INR). This allows investors to earn fixed returns in a stable global currency while avoiding the risk of INR depreciation over time.

Ans: GIFT City (Gujarat International Finance Tec-City) is a smart city designed to cater to global finance, offering a tax-efficient and investment-friendly environment. It helps NRIs invest in foreign currencies while benefiting from India’s financial growth.

Ans: GIFT City is governed by IFSCA, which consolidates RBI, SEBI, and IRDAI regulations to ensure investor security.

Ans: No INR conversion needed – Invest directly in foreign currency.\nNo TDS – Unlike NRE/NRO accounts, withdrawals are tax-free in India.\nEasier repatriation – Direct fund transfers without RBI approvals.

Ans: Tax planning should start at the beginning of a financial year, as it enables individuals and businesses to settle their financial affairs and take advantage of the best tax-saving opportunities. However, you can still benefit from it at any time during the year.