Latest news with #USD-INR
Time of India
17 hours ago
- Business
- Time of India
Rupee ends lower for fifth day: Falls 7 paise to 86.38 against dollar amid trade deal uncertainty; FII outflows persist
The rupee on Tuesday fell 7 paise to close at 86.38 against the US dollar, weighed down by persistent uncertainty over the India-US trade deal ahead of the August 1 deadline and continued foreign fund outflows. At the interbank foreign exchange market, the domestic currency opened at 86.26, touched an intra-day high of 86.22 and a low of 86.41, before settling at 86.38, down from the previous close of 86.31. This marked the rupee's fifth straight session of decline since July 16, when it had closed at 85.92. Forex traders said while the softening of crude oil prices and a weaker dollar supported the rupee at lower levels, negative domestic equity trends and foreign institutional investor (FII) outflows capped gains. "We expect the rupee to trade with a slight negative bias on trade deal talks. However, weakness in the American currency and softening of crude oil prices may support the rupee at lower levels," said Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan. Dilip Parmar, Research Analyst at HDFC Securities, said, 'The rupee depreciated for the fifth consecutive day, driven by risk-averse market sentiment and consistent dollar demand.' by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Lodha Panache: Hinjewadi Pune: 2/3/4 BHK Luxurious Flats Lodha Panache Learn More Undo He added, 'Regional currencies remain range-bound as the dollar consolidates amid geopolitical uncertainties. Near-term, spot USD-INR has support at 85.95 and resistance at 86.70.' An official said the US team will visit India in August for the next round of negotiations on the proposed bilateral trade agreement. The fifth round of talks concluded last week in Washington. The August 1 deadline marks the end of the suspension of Trump-era tariffs on several countries, including India, where a 26% tariff on exports could come into effect if no interim deal is reached. "Traders may remain cautious ahead of PMI and durable goods orders data from the US this week," Choudhary added, noting the USD-INR spot price is expected to trade between 86.10 and 86.65. The dollar index fell 0.03% to 97.82, while Brent crude declined 0.94% to $68.56 per barrel in futures trade. In domestic markets, the Sensex slipped 13.53 points to 82,186.81, and the Nifty dropped 29.80 points to 25,060.90. FIIs offloaded equities worth Rs 3,548.92 crore on a net basis, according to exchange data. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
News18
18 hours ago
- Business
- News18
Rupee falls 7 paise to close at 86.38 against US dollar
Agency: PTI Last Updated: Mumbai, Jul 22 (PTI) The rupee pared initial gains and settled for the day down 7 paise at 86.38 against the US dollar on Tuesday, amid uncertainty over the US-India trade deal ahead of the August 1 deadline. Forex traders said, all eyes are now on the outcome of India-US trade talks, especially as the August 1 deadline for potential tariffs on Indian exports draws near. The weakness in the American currency and softening of crude oil prices supported the rupee at lower levels, while foreign fund outflows and a negative trend in domestic equities weighed on the local unit and restricted the upside. At the interbank foreign exchange, the domestic unit opened at 86.26 against the greenback and touched an intra-day high of 86.22 and a low of 86.41 against the greenback. At the end of Tuesday's trading session, the local unit settled at 86.38, down 7 paise over its previous closing price. This was rupee's fifth straight session of decline since July 16 when the unit had lost 16 paise and ended at 85.92 against the dollar. On Monday, the rupee depreciated 15 paise to close at 86.31 against the US dollar. 'We expect the rupee to trade with a slight negative bias on trade deal talks. However, weakness in the American currency and softening of crude oil prices may support the rupee at lower levels," Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, said. Dilip Parmar, Research Analyst, HDFC Securities said the rupee depreciated for the fifth consecutive day, driven by risk-averse market sentiment and consistent dollar demand. 'Regional currencies remain range-bound as the dollar consolidates amid geopolitical uncertainties. Near-term, spot USD-INR has support at 85.95 and resistance at 86.70," he added. Meanwhile, the US team will visit India in August for the next round of negotiations for the proposed bilateral trade agreement between the two countries, an official said on Monday. India and the US teams concluded the fifth round of talks for the agreement last week in Washington. These deliberations are important as both sides are looking at finalising an interim trade deal before August 1, which marks the end of the suspension period of Trump tariffs imposed on dozens of countries, including India (26 per cent). If the discussions fail or get delayed, Indian exporters could face fresh pressure — adding to the rupee's challenges. However, if a deal is reached, it could offer a much-needed breather. Until then, the uncertainty is likely to keep market participants cautious. 'Traders may remain cautious ahead of PMI and durable goods orders data from the US this week," Choudhary said, adding that USD-INR spot price is expected to trade in a range of 86.10 to 86.65. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.03 per cent to 97.82. Brent crude, the global oil benchmark, fell 0.94 per cent to USD 68.56 per barrel in futures trade. In the domestic equity market, the 30-share BSE Sensex declined 13.53 points, or 0.02 per cent, to close at 82,186.81, while the Nifty fell 29.80 points, or 0.12 per cent, to settle at 25,060.90. Foreign institutional investors (FIIs) offloaded equities worth Rs 3,548.92 crore on a net basis on Tuesday, according to exchange data. PTI DRR HVA view comments First Published: July 22, 2025, 20:30 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Time Business News
5 days ago
- Business
- Time Business News
US Tax Compliance for Indian Entrepreneurs
If you're an Indian entrepreneur running a U.S. company—whether it's a Delaware C-Corp or a Wyoming LLC—congratulations, you're thinking globally. But expanding your business across borders means entering a more complex tax universe. And U.S. compliance isn't just about filing on time—it's about understanding the layers of responsibilities that apply to your structure, revenue, and operations. Here's a practical and up-to-date U.S. tax compliance checklist for 2025, tailored for Indian founders who've incorporated company in the US This guide walks through each phase—from initial filings to cross-border planning—with insights you won't find in IRS manuals. Your first step is to identify what you've actually registered. Each entity has its own tax obligations. Delaware C-Corp : Must file Form 1120 annually, and may need Form 5472 if foreign-owned. : Must file Form 1120 annually, and may need Form 5472 if foreign-owned. Single-member LLC (foreign-owned): Disregarded entity, but still requires Form 5472 + pro forma 1120 . (foreign-owned): Disregarded entity, but still requires . Multi-member LLC : Files as a partnership unless elected otherwise. : Files as a partnership unless elected otherwise. Foreign Company with U.S. Presence: May trigger effectively connected income (ECI) and require Form 1120-F. Tip: Even if you had zero revenue, you're still required to file. Failing to do so triggers automatic penalties. Accounting in India ≠ accounting in the U.S. The IRS expects GAAP-style reporting, including clear documentation of: Revenue by geography Cross-border payments (contractors, IP, intercompany) Owner contributions and withdrawals Detailed expense logs with receipts Recommended tools: QuickBooks Online , Xero for double-entry accounting , for double-entry accounting Wise , Airwallex , Mercury for easy USD-INR transfers , , for easy USD-INR transfers A Virtual CFO to bridge India-U.S. finance practices Here's a simple overview of key tax forms that U.S. entities must file: Form Purpose Due Form 1120 U.S. Corporate Income Tax Return April 15 Form 5472 Reportable foreign ownership transactions With Form 1120 FBAR (FinCEN 114) Disclose foreign bank accounts April 15 (auto extension to Oct 15) Form 8865 / 5471 Foreign ownership or affiliate disclosures With tax return Missing even one of these can result in penalties of $10,000–$25,000 per form. Forget once-a-year filing. U.S. tax compliance is year-round. Here's what your calendar should include: Quarterly Estimated Tax Payments : April, June, September, January : April, June, September, January Annual State Franchise Taxes (e.g., Delaware due March 1) (e.g., Delaware due March 1) Form 5472 / 1120 : April 15 : April 15 FBAR : April 15 (automatic extension to Oct 15) : April 15 (automatic extension to Oct 15) Payroll Reporting (Form 941): Quarterly if you have U.S. employees 💡 Pro tip: Use Google Calendar or Asana to create compliance reminders with your CFO or accountant. Most Indian founders miss legal U.S. deductions because they don't know they exist—or assume they don't apply. Here are the big ones: U.S. travel for fundraising, biz development SaaS tools (Notion, Slack, Figma) Cloud computing (AWS, GCP) U.S. contractors and advisors Equipment depreciation R&D Tax Credit – For product/SaaS startups – For product/SaaS startups Foreign Tax Credit – For taxes paid in India – For taxes paid in India Startup Cost Deduction – Up to $5,000 in first-year expenses India taxes global income for its residents. The U.S. taxes entities based on where they're incorporated or generating revenue. If you're: An Indian founder with a U.S. company : The company pays tax in the U.S., and you may pay Indian tax on dividends, salary, or repatriated profits. : The company pays tax in the U.S., and you may pay Indian tax on dividends, salary, or repatriated profits. Paying Indian taxes on the same income: You can offset it using DTAA provisions. The India-U.S. Double Tax Avoidance Agreement allows you to: Claim a foreign tax credit in India for taxes paid in the U.S. Access reduced withholding tax rates on dividends (15%), royalties (10%), etc. But: DTAA avoids double taxation, not double filing. You still need to file in both countries. Where you incorporate matters for both taxes and compliance. Here's a simplified snapshot: State Corporate Tax Franchise/Other Ideal For Delaware 8.7% Min $300/year Investors, C-Corps Wyoming None None Holding companies, LLCs Texas None Margin tax if revenue > $2.47M SaaS & services California 8.84% $800 LLC tax Larger ops, not cost-sensitive Choose your state based on whether you're fundraising, setting up U.S. operations, or just needing a U.S. legal presence. A Virtual CFO is your full-time financial ally—minus the cost. For cross-border businesses, they help: File IRS, state, and FinCEN forms on time Reconcile books under both Indian and U.S. GAAP Forecast cash flows & estimate quarterly taxes Communicate with IRS & registered agents Coordinate with Indian CAs for DTAA compliance Hiring a part-time CFO can save your startup from costly legal issues—and improve investor confidence. ✅ Task 👨💻 Owner Determine filing forms (1120, 5472, FBAR) CPA or CFO Set calendar reminders for tax events Founder/CFO Track U.S. vs India income/repatriation Virtual CFO Claim eligible deductions and credits CFO Ensure DTAA is applied to avoid double tax Indian CA + CFO File BOI reports if required (2025 onwards) Legal or CFO Track multi-state tax implications CFO or U.S. tax advisor U.S. tax compliance for Indian founders is complex—but manageable with the right systems and people in place. Whether you're early-stage or scaling, understanding U.S. tax rules will help you protect your company, optimize cash flow, and build long-term credibility with investors and regulators. At USAIndiaCFO, we help Indian founders with U.S. entities manage tax filings, accounting, and DTAA planning—all virtually and seamlessly. Yes. Even if your U.S. entity made no revenue, the IRS requires annual filings such as Form 1120 and Form 5472 (if foreign-owned). Failing to file can result in automatic penalties. The penalty for late or non-filing of Form 5472 is $25,000. For FBAR, it's $10,000+ per year for non-willful violations, and significantly higher for willful ones. Not usually. Indian residents typically pay U.S. tax only on U.S.-source income. However, if they own a U.S. company, the company's worldwide income may be taxable in the U.S. Under the Double Taxation Avoidance Agreement (DTAA), taxes paid in the U.S. can be claimed as foreign tax credit in India. This avoids being taxed twice on the same income. No. U.S. entities must follow GAAP (Generally Accepted Accounting Principles). Your financial statements must be U.S.-compliant, especially if you're preparing for audits or investor due diligence. Delaware, Wyoming, and Florida are popular choices due to low taxes, minimal compliance, and startup-friendly rules. Each has its own pros—Delaware for credibility, Wyoming for zero tax. While not mandatory, having a CPA or Virtual CFO familiar with both Indian and U.S. regulations is strongly recommended. They can ensure timely filings, handle IRS notices, and maximize deductions. Yes, if youraggregate foreign account balance exceeds $10,000 at any point in the year, you must file FBAR (FinCEN Form 114)—even if those accounts are in India. Possibly. If your Indian operations create a Permanent Establishment (PE) or if you remit profits to India, Indian tax implications could apply. Coordination between a U.S. CPA and Indian CA is vital. Here are the standard deadlines (for calendar-year filers): Form 1120 & 5472 : April 15 (extendable to Oct 15) : April 15 (extendable to Oct 15) FBAR : April 15 (automatic extension to Oct 15) : April 15 (automatic extension to Oct 15) Delaware Franchise Tax : March 1 : March 1 State taxes: Varies by state TIME BUSINESS NEWS
The Hindu
7 days ago
- Business
- The Hindu
Rupee falls 18 paise to close at 85.94 against U.S. dollar
The rupee declined 18 paise against the U.S. dollar to close at 85.94 (provisional) on Wednesday (July 16, 2025), tracking a strengthening American currency against major crosses overseas amid uncertainties over the India-U.S. trade pact. However, renewed foreign capital inflows and sliding global crude prices supported the domestic unit, according to forex traders. At the interbank foreign exchange, the rupee opened weak at 86.02 against the dollar. It traded in the range of 85.74-86.05 during the day before closing at 85.94 (provisional), down 18 paise from its previous close. In the previous session, the rupee appreciated 16 paise to close at 85.76 against the U.S. dollar. 'The Indian Rupee experienced notable volatility today, initially weakening against a robust U.S. Dollar before recovering mid-session due to dollar supply, only to conclude with net losses. 'This movement follows a three-day consolidation phase for the USD-INR pair, ranging from 85.70 to 86.05. The sentiment remains acutely favourable for the dollar, driven by expectations of a hawkish Federal Reserve post-U.S. inflation data and persistent uncertainties regarding India-U.S. trade agreements,' said Dilip Parmar, Research Analyst, HDFC Securities. An Indian commerce ministry team is in Washington for another round of talks on the proposed bilateral trade agreement. The four-day talks, which started on Monday (July 14, 2025), will conclude on Thursday (July 17, 2025). 'We continue to await the outcome of the trade deal as inflows and outflows keep the rupee well entrenched in a range of 85.70 to 86.10. We expect a similar range for the rupee tomorrow (Thursday) as well,' Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said. Brent crude, the global oil benchmark, was down 0.26% to $68.53 per barrel in futures trade. The dollar index, which gauges the greenback's strength against a basket of six currencies, dipped 0.07% to 98.54. On the domestic equity market front, the Sensex rose 63.57 points to settle at 82,634.48, while the Nifty inched up 16.25 points to 25,212.05. Foreign institutional investors (FIIs) bought equities worth ₹120.47 crore on a net basis on Tuesday (July 15, 2025), according to exchange data.
The Print
12-07-2025
- Business
- The Print
Rupee falls 10 paise to close at 85.80 against US dollar
At the interbank foreign exchange, the rupee opened at 85.76 against the US dollar, and touched an intra-day low of 85.91 during the day. The local unit finally settled for the day at 85.80, down 10 paise from its previous close. Forex traders said global market sentiments were dented as US President Donald Trump imposed 35 per cent tariffs on Canadian goods. Mumbai, Jul 11 (PTI) The rupee depreciated 10 paise to close at 85.80 against US dollar on Friday, on weak domestic markets and risk-off sentiments amid trade tariff uncertainty. On Thursday, the rupee pared initial gains and settled for the day higher by 3 paise at 85.70 against the US dollar. 'We expect the rupee to weaken as the trade war continues to dent global risk sentiments. Uncertainty over trade tariffs and higher US dollar index may also pressurise the rupee. However, a weak tone in crude oil prices may support the rupee at lower levels,' Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan, said. Choudhary further added that USD-INR spot price is expected to trade in a range of 85.55 to 86.25. Forex traders said rupee traded in a volatile but narrow range as market participants stayed on the sidelines, waiting for clarity on the US-India interim trade deal. Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said the rise in tariffs from the US on Brazil and Canada has added uncertainty, and markets will remain cautious until constructive trade talks emerge. 'Additionally, the dollar index has shown recovery, rising from 96.50 to 97.75, which has added pressure on emerging market currencies. Rupee is expected to trade in a range of 85.25 to 86.20,' Trivedi said. The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.13 per cent to 97.77. Brent crude, the global oil benchmark, rose 0.34 per cent to USD 68.87 per barrel in futures trade. On the domestic equity market front, the Sensex dropped 689.81 points or 0.83 per cent to settle at 82,500.47, while the Nifty lost 205.40 points or 0.81 per cent to close at 25,149.85. Foreign institutional investors (FIIs) sold equities worth Rs 5,104.22 crore on a net basis on Friday, according to exchange data. The latest RBI data released on Friday showed India's forex reserves dropped by USD 3.049 billion to USD 699.736 billion in the week ended July 4. In the previous reporting week, the overall reserves had jumped by USD 4.849 billion to USD 702.784 billion. Meanwhile, India is trying to negotiate and finalise a trade agreement with the US, Special Secretary in the Department of Commerce Rajesh Agrawal said on Thursday. Agrawal is also the chief negotiator of the proposed India-US bilateral trade agreement. The aim is to conclude the first phase of this pact by fall (September-October) of this year. Before that, the two countries are looking to finalise an interim trade agreement. An Indian commerce ministry team will soon visit Washington for another round of talks on the proposed trade agreement with the US to iron out differences in sectors, like agriculture and automobiles, a government official said on Thursday. 'We are not differentiating between an interim or the first phase of the bilateral trade agreement. We are negotiating a complete deal. Whatever will be finished, we can package it as an interim deal and for the rest, talks will continue,' the official said. PTI DRR HVA This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
