Things NRIs Must Keep in Mind While Investing in India

  • India is considered as the fastest economic development nation in the world.
  • This assures the promising market whereby most of the investors tend to make an investment in India.
  • India offers high-interest rates compared to other nations in the world.
  • This makes a majority of the NRI’s to make an Investment in India. NRI can choose investment plans like fixed deposit, mutual fund, real estate investment, treasury bills and company deposit.
  • Nonresident Indian can make their investment in equity market but they understand the risks and returns that can be expected in such investment.
  • Equity is also considered as the long-term investment goal and there is also no limitation for the amount to be invested in the equity market.
  • NRI can also make their Investment in Mutual Fund which is also considered as the safe method of investment compared to the equity.
  • The mutual fund requires the individual to possess less expertise about the market trend and risks.
  • They do not require any specific approval for investment. When the NRI is a resident of USA or Canada then specific investment house rules should be checked prior to investment such that the cash is not locked within an investment scheme.
  • It is known that people residing in the other nation are not allowed to avail the home loan whereby NRI may plan to purchase a property and lend them for rent or lease the property.
  • Individuals can create an NRE account the funds deposited in foreign currency gets converted into Indian rupees to the current conversion rate.
  • The cash deposited in Indian bank can also be transferred to any country.
  • When the individual pretends to make an investment with the short term gain then he/she should make a payment of 15% tax to the government whereas if the Investment is long-term then the tax on such gains is free from payment.
  • Equity funds declare dividends to the clients they also levy tax-free to the NRI investor.
  • Debt-oriented mutual funds also offer dividends of tax-free to the NRI.
  • Suppose the NRI makes an investment with the foreign companies then these dividends are taxable to the NRI.
  • So a proper research about the investment and the risks associated with each type of cash deposit along with their increased returns should be analyzed before making an investment.
  • Hence Investment in India makes the NRI earn a handsome amount undoubtedly.

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