NRI Banking

  Non-Resident Indian life comes with its own sets of challenges. While they do have many perks, they also have to deal with problems like double taxation. Non-Resident Indians earning abroad are taxed on their foreign income by their resident country. They are taxed for investments, properties, or any income that they may have in India as well. It’s natural to want to make the most out of your earnings in India and use tax deductions and provisions made available for NRIs. There are many ways in which an NRI can optimize taxes in India while earning abroad. Before we get into tax optimization tips, it’s important to identify which NRIs are supposed to pay taxes in India. If you are an NRI with active business transactions, investments, and assets from which you make money in India, you are liable to pay taxes to the Indian tax authorities. As an NRI you have to pay taxes on the following: ●   All income accrued in India ●   Direct or indirect income received in India...

  Many Non-Resident Indians have properties in India. While some buy properties for investment purposes while some others have inherited them. Either way, managing a property in India when one is abroad is challenging, which is why many NRIs opt to sell their properties in India. However, there are various tax laws and regulations to consider before doing so. NRIs can sell their properties in India to a Resident Indian, another NRI, or a Person of Indian Origin (PIO). NRIs can also rent out their Indian property. However, if an NRI owns agricultural land, they can only sell this to Resident Indians. The income an NRI receives from the transfer of property is taxed under capital gains. Rental income from properties is taxed under ‘Income from House Property. Before transferring your property, it is necessary to educate yourself on all the laws and regulations to avoid major tax implications. Tax Liabilities NRIs are liable to pay taxes when it comes to buying and selling property in...

  A lot of Indians go to foreign lands in search of better career and lifestyle opportunities. However, many of them return after retirement because no matter where you go, India will always be home. There are multiple reasons why NRIs return to India after retirement. Some prefer to return due to purchasing power parity arbitrage, which allows them to have a better lifestyle in India as compared to their host country. Another reason could be that NRIs cannot sustain their desired lifestyle after retirement in their host country, and hence want to return. Either way, it is essential for NRIs planning to come back home to know what their options for pension plans in India are to live a dignified and comfortable life post-retirement. Having a retirement corpus is great, but that won’t necessarily be enough. Since NRIs are used to a decent lifestyle, matching it after retirement would be challenging. There are many factors to consider after retirement, which could include medical expe...

  Many Indians decide to move abroad for better work opportunities and lifestyles. However, sometimes they have to return to their home country. As difficult as it is to move to another country, it is equally challenging to return. Along with lifestyle changes, NRIs returning to India also face a shift in their finances and it is best to be prepared. If you are a Non-Resident Indian looking to move back to India, here are four significant changes you will have to make: Taxation As an NRI you enjoy certain tax breaks, but those are released once your status changes from NRI to resident Indian. NRIs returning to India fall under two categories - Resident and Ordinarily Resident (ROR) and Resident but Not Ordinarily Resident (RNOR). If an NRI stays in India for over 182 days in a particular financial year or more than 60 days in a financial year and 365 days in the previous 4 FYs, they are considered Ordinary Residents (ROR). NRIs who have managed to retain their NRI status for 9 out ...

  When resident Indians move abroad, there are many things to check off their to-do lists. From packing up your belongings, figuring out accommodation, booking tickets, sorting out visas and other permissions to meeting your family and friends one last time before you pack your bags for good, there are many tasks to be accomplished. But between the chaos and the excitement of it all, don’t forget to settle your finances in India. After all, you’d rather enjoy the sights and culture of your new home and not being buried in paperwork from your bank accounts back in India. One of the most important tasks you have to finish before leaving the country is taking care of your savings account. Many resident Indians feel stumped as to what to do with their already existing savings account as they won’t be valid once they become Non-Resident Indians (NRIs). Well, you don’t need to close your accounts, you can simply get them converted into an NRO Savings Account (Non-Resident Ordinary) or o...

  Non-Resident Indians (NRIs), Persons of Indian Origin (PIOs), and Overseas Citizenship of India (OCIs) are always looking for lucrative ways to invest in India. Real estate has always been a favorable option for NRIs due to the emotional connection they have with their homeland. Many NRIs aim at settling down in India after retirement, and for that purpose, investing in real estate in India is a good idea. Even looking solely from an investment point of view, it is an attractive proposition. NRIs can expect 7-8% appreciation annually over ten years. To encourage more Non-Resident Indians to invest in the Indian real estate market, the RBI and Foreign Exchange Management Act (FEMA) have laid down a few guidelines. Here are some more rules that NRIs need to keep in mind before investing in properties in India: Types of properties NRIs can invest in as many residential and commercial properties as they wish in India. However, agricultural land, plantation property, or farmhouses can...

  While many Indians leave their homeland to make a better living abroad, they usually aim to come back home after retirement. A lot of financial planning goes into ensuring that your retirement years are comfortable. If you’re a Non-Resident Indian aiming to return to India after retiring, here are some things you need to consider. Set a retirement age Most people choose to retire by 60, but you can aim to retire earlier if you set some financial goals for yourself and follow through. Your retirement age also depends on your country of residence. Expats in the UAE can work only till they are 65. However, in Saudi Arabia, Oman, and Kuwait the retirement age is 60 years. If you still wish to continue working in some capacity after retirement, you can always choose to work in India. An unspoken rule in retirement planning is that you spend two-thirds of your life working and accumulating wealth for retirement and the third is spent in the drawdown. There are 4 major factors to consid...