NRI investments in India are predicted to reach $13.1 billion by the end of 2021, according to a prominent real-estate advisory firm. Read until the end if you want to know how you can benefit from investing in India and attain financial freedom.
Consolidate Your Financial Accounts
No matter where you live, you might have several accounts such as Demat, savings, etc., back in India. As an NRI, you have to convert these into NRI accounts. You might require an NRO account if you have an income source in India. Consolidating your accounts would make it easier to manage them. Another option you may try is a PIS (Portfolio Investment Scheme) account, which can enable an NRI to sell shares in recognized Indian stock exchanges.
Get Health Insurance Coverage
As steep as healthcare costs are, health insurance is essential. If you plan a return to India eventually, you need to plan for health insurance as early as possible, as you may not be eligible upon your return. If not health insurance, you can consider building a medical fund. Do remember that this may have tax implications depending on your country of residence, so make an informed decision.
Invest in Real Estate
Real estate has been a perennial investment source for NRIs, especially since RERA was established. Transparency in engagement, registered properties, and reliable developers ensure a secure investment. You might even want to leverage the lack of GST on resale flats and purchase a ready-to-move-in flat.
Over time, the Indian real estate industry has remained an attractive investment option with increasingly healthier returns. As the dollar gains strength against the rupee, you can take advantage of the lowering property rates. A point for you to remember is that every transaction related to this investment needs to be made in Indian rupees.
Sort Your Tax Liabilities
There is an interesting aspect you should be aware of if you want to avoid paying tax on the same income more than once. The DTAA (Double Tax Avoidance Agreement) that India has with many countries ensures that you can set off the taxes that you pay in one country against those that are due in another. It might also offer NRIs lower tax rates in India. All you need to do to avail of these benefits is to submit the 10F form. A tax residency certificate is also required from your country of residence.
Consider Mutual Funds
If you are financially inexperienced and looking for an attractive investment option, mutual funds are the right fit for you. The most important feature of mutual funds is that you have a fund manager helping you manage your investments. That said, this investment option is still taxable, and you are advised to review the interest rates first. It is also important to assess the investment timeframe. If living in the U.S., do check out the compliance complications that are under the FATCA (Foreign Account Tax Compliance Act).
If you are ready to formulate a solid investment plan for yourself, our tips would certainly help you make well-informed decisions.
