NRI Banking

The Indian stock market offers many lucrative opportunities to investors. Many Non-Resident Indians are always looking to invest in their home country. Investing in the Indian market can help you make tremendous profits, however, the procedure to invest is different for NRIs. Unlike resident Indians, NRIs cannot use a regular Demat Account or a trading account to do so, but they can open an NRI Trading Account through the Portfolio Investment Scheme (PIS). NRI Trading Account As a Non-Resident Indian if you wish to invest in the Indian stock market, you need to open an NRI Trading Account. This allows to you invest in IPOs, Stock Derivatives, Mutual Funds, Equities, and Bonds listed on the Indian Stock Exchanges like the National Stock Exchange and the Bombay Stock Exchange. Types of NRI Accounts Non-Resident Indians managing their funds and investments in India can open the following accounts. NRE Savings Account There are many NRIs who send money back to India to their loved ones. Th...

Industrial development in India has been commendable in the last few years. New businesses are flourishing in India which has attracted many foreign direct investments. Non-Resident Indians are always looking for lucrative opportunities to grow their wealth and the Indian stock market offers many options to expand their portfolio. However, shares and securities are always subject to market risk. Fixed Deposits on the other hand are a more secure and laidback approach to saving money. The market conditions do not affect your investments, however, the rate of interest on Fixed Deposits is way lower than stocks. So, what should a Non-Resident Indian who’s looking to put some extra funds away invest in? Let’s dive deeper into what stocks and Fixed Deposits have to offer, and you can decide for yourself. Fixed Deposits One of the oldest and the most secure way of investing your money is putting them away safely in Fixed Deposits. One has to open a Fixed Deposit with a bank of their choice, ...

  Many Non-Resident Indians like to invest in the Indian market after moving abroad. The Indian stock market and other investment options allow NRIs to make an extra buck on their hard-earned money. However, one should know that this income is taxable in India. From FY2021, all income earned by dividends from shares of an Indian company is taxable in India. NRIs who receive dividends from their investments will be taxed 20%, surcharge plus 4% health and education cess. Here’s everything you need to know about the NRI incomes that are taxed in India and how you can make the most of exemptions on your income. Taxes on NRE Savings Accounts & NRO Savings Accounts Most Non-Resident Indians either have an NRE Savings Account (Non-Resident External) or an NRO Savings Account (Non-Resident Ordinary). Income from NRO Savings Accounts is taxable in India, however, if the NRI’s resident country has issued a tax residency certificate, they may have to pay a lower tax rate on the intere...

  Most Non-Resident Indians have families back in India, especially elder parents. Taking care of them from a different part of the world might seem challenging, but it’s a lot easier if you have a good health insurance plan in place. Non-Resident Indians can buy health insurance for their parents in India even when they live overseas and can even manage various payments in India no matter where they are in the world. It is always recommended to get health insurance for your parents, especially in sensitive times like these, it’s always good to be prepared with a solid insurance plan which offers state-of-the-art healthcare facilities so that you can rest assured. Good health insurance will also protect you and your parents from exorbitant charges in case of hospitalization. However, it is important to choose the right insurance plan for your parents. You can go for an individual plan or could also opt for a family health plan and add your parents as dependents. A senior citizen he...

  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...