For NRIs (Non-Resident Indian), visiting India opens doors to exciting opportunities and cherished moments, but it also comes with its own set of financial challenges. Whether you are here for a short visit or an extended stay, planning your finances wisely can help you make the most of your time while avoiding unnecessary complications. From reassessing your goals to leveraging accounts like NRE or NRO with IDFC FIRST Bank, here are the seven smart financial tips to consider during your visit.
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Reassess your financial goals and priorities
Your visit to India is the perfect time to reflect on your financial objectives. Whether you’re saving for a property, supporting family, or planning investments, aligning your goals with your current financial standing ensures better decision-making. Consider opening an NRE or NRO account with IDFC FIRST Bank to manage your funds effectively, whether they are repatriable savings or local earnings.
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Convert foreign assets and currency efficiently
Managing foreign currency and assets efficiently is key for NRIs visiting India. Rather than liquidating assets, analyse the best conversion options to minimise exchange rate risks and tax liabilities. IDFC FIRST Bank’s NRE accounts allow you to hold your foreign income in Indian currency without incurring taxes on interest earned, providing flexibility in managing currency conversion based on favourable exchange rates and an attractive interest rate to grow your money. Additionally, you can manage your funds from anywhere with the innovative mobile banking app offering instant money transfers, bill payments, and online shopping and more.
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Manage overseas investments and taxation
Your overseas investments continue to grow while you visit India and managing them effectively is important. Review any taxation obligations in your home country and ensure compliance. Seek professional advice to understand the double taxation avoidance agreements (DTAA) between India and the country you’re coming from, as it could impact your tax obligations on overseas income. NRO accounts with IDFC FIRST Bank can help you receive income from these investments in India, manage taxes on domestic earnings seamlessly and earn one of the highest interest rates in the industry to grow your wealth.
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Understand tax residency status in India
Staying in India for an extended duration may alter your tax residency status. As per Indian laws, if you reside in India for 182 days or more during a financial year, your tax status could change, subjecting your global income to Indian taxation. Consulting a tax advisor or IDFC FIRST Bank’s relationship manager can help clarify your tax responsibilities and explore tax-saving opportunities. Additionally, an IDFC FIRST Bank NRO account can aid in consolidating local income, which will be taxed per Indian regulations.
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Settle outstanding debts and liabilities
If your stay is extended or indefinite, clearing outstanding loans and liabilities overseas before visiting India can provide peace of mind. This includes credit card dues, mortgage loans, or any other financial commitments abroad. Settling debts beforehand will allow you to avoid the complexities of cross-border debt management. Consider allocating funds from your NRE account for such payments, as this account is tax-free and freely repatriable.
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Build a local investment portfolio
Creating a diversified investment portfolio in India is essential to grow wealth locally. Evaluate options such as mutual funds, fixed deposits, and real estate, considering your risk appetite and financial goals. IDFC FIRST Bank offers various investment options for NRIs, including fixed deposits with competitive interest rates and tax benefits.
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Plan your retirement in India
If retiring in India is part of your long-term plan, your visit can help you identify suitable retirement options. Invest in assets that align with your retirement goals, such as fixed deposits or pension plans. You may consider transferring a portion of your savings into Indian retirement schemes like the National Pension System (NPS) or other retirement-focused investments. IDFC FIRST Bank’s NRI Banking is designed to help you plan and secure your financial future with ease.
Conclusion
Smart financial planning can make your visit to India productive and stress-free. Start by setting clear goals, managing currency and taxes efficiently, and leveraging opportunities for local investments. Opening NRI accounts like NRE and NRO with IDFC FIRST Bank can be a valuable step in achieving financial convenience and growth. Begin planning your finances early and seek professional advice to ensure all aspects are covered. With the right approach, your visit to India can be as rewarding financially as it is emotionally.
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