NRI Corner

Take a look at your various financial accounts: You may live abroad, but there may be several accounts in your name back in India. These would include a savings bank, demat, etc. Once you are an NRI, you have to convert all these accounts into NRI accounts. An NRO account is required if you have income in India. It is good to consolidate your accounts, as managing them becomes easy. You can also open a PIS (portfolio investment scheme) account to enable you as an NRI to sell Indian shares on recognized stock exchanges.

Choose the best investment plans in India: India is a growing economy, and both equity and debt returns in the nation are higher than in many other developed countries. As an NRI, it is wise to choose the best investment plan in India. You can invest in mutual funds and also in equity shares. However, when investing in shares, RBI has specific guidelines. Investing in real estate is also another option. You can also purchase residential or commercial properties in India. However, you need to note tax implications, especially if you want to sell any of your properties.

Get health insurance: With rising healthcare costs, a health cover is essential. As an NRI, you would have a health cover in place. You plan to return to India after retirement; you would then need a health cover in India. Once back in India, you may not be eligible for a health cover as you may have pre-existing diseases. So, you need to plan and get health cover already. Otherwise, you may look to build an adequate medical fund.

Figure out your tax liabilities: Income that arises in India is taxable in India itself. However, India has a Double Tax Avoidance Agreement (DTAA) with many countries. This is to avoid tax on the same income twice. DTAA allows you to set off taxes paid off in one nation against taxes due in another country. Under the DTAA agreement, NRIs might also be subject to reduced tax rates in India. To avail of DTAA benefits, you need to submit form 10F. You also need to obtain a tax residency certificate from the country of your residence.

As we have seen, NRIs need to have investment plans in India to get higher returns!