Indians have already spread their wings in almost every corner of the world and proved themselves in respected business or profession. Non-resident Indians or you can say NRIs have always been integral to the image when it comes to the power of India, An NRI paints the picture to the world about India, its culture several other things. As a person who is living abroad, it is vital to stay connected with the roots and make the needful and wise investment back in his/her own country. Moreover, if you are an NRIs and have dependants in India, then it is important to think about their security and financial goals so they can live a standard life in India without any financial . So, before becoming NRI, it is important for you to think about all investment strategies which can assist you in making an investment in India.
There is no doubt in saying that India is one of the fastest growing countries when it comes to economies. As per several economic estimation reports and research data, we come to know that India's growth is around 6 to 7 percent annually. It is significantly higher as compared to the economies of other countries where the growth is nominal or no growth at all. That's why India is always the preferred choice for NRI investors. Moreover, in the context of return rate which is higher in India, it becomes easy for an NRI to invest in India and earn a lot through his savings in the bank account. This is one of the biggest reasons why NRIs look for different options to make an investment in India and keep money in their Indian bank accounts.
As per the Foreign Exchange Management Act (FEMA), you automatically become a non-resident when you are planning to move abroad for your professional growth for an indefinite period. However, below are a few things that you should do before leaving from investment point of view.
Don't forget to make a few changes in your bank accounts and convert the same into Non-Resident Ordinary (NRO) bank accounts. It is possible that you may have accounts and converting all of them in NRO will not be a wise thing, in place of same consolidate accounts. It will be a challenging thing multiple bank accounts in terms of accurate taxation you are away. Make a definite decision and decide that you want to keep as an NRO account that will take care India related incomes that includes rent and dividends, the rest. Just keep following the same process for your as well. Moreover, get yourself enrolled under a Non-Resident External (NRE) account, that allows you to remit money from foreign dependent care or investments, without compromising with the flexibility of repatriating the money if needed.
If you are not going use your bank accounts then it doesn't make any sense to keep and pay the annual fee for the same. Think about giving up bank locker as well if you do not wish to keep valuables and documents in it.
It is vital to make changes in your KYC on becoming an NRI and make sure that reflect the current residential address. It is also get your folio changes from normal and basic account to the NRO bank account and that will help you in avoiding several unwanted problems that can occur because of mismatched information.
Life Insurance Policies:
To keep your life insurance active on becoming an NRI. that you are premium payment timely that would keep your policy active, reminder for the same. You must not think twice about keeping your term life insurance plan active. You can evaluate other plans and can compare that which policy is good to continue and which you can surrender. those policies that you can convert to paid-up- say, stop paying fresh premiums, but keep the policy.
Heath Insurance Policies:
Don't and never think about giving up your health insurance plan instantly. You never know what is waiting for you in future and need to come back to India to get a medical treatment and that pre-existing illnesses do carry waiting periods in most parts of the world. It is vital for you to make sure that you all premiums on time and such policies can't be revived once they lapse.
You sure that your all taxes are been paid for and your tax carry a good understanding of NRI tax matters. In certain the world, you may require the help of a specialist or a tax advisor who will work closely with your Indian tax advisor.
Almost everyone has dreamt of settling abroad. People are planning and doing preparation in order to get a reputed job in foreign country. Before you achieve what you have planned for, it is advisable to keep yourself aware of all financial tips that will provide a peaceful life in foreign countries and will surely assist a lot.
Naval Goel is the CEO and Founder of PolicyX.com