Finally secured your dream job at your dream location abroad? What next?
How to save the “dollars” or “pounds” you earn?
Where to invest that money?
If these kind of queries are bothering you, you have arrived at the right place!
First, let us see what makes you an Indian. The Income Tax Act, 1961 defines a non-resident Indian as an individual, being a citizen of India or a person of Indian origin, who is not a resident. A person is of Indian origin if he or either of his Indian parents or any of his grandparents was born in undivided India.
As a non-resident Indian, you can still save money in India. You can invest in the real estate sector, Bank FDs -NRE, NRO or FCNR accounts, Bonds, Mutual Funds or Direct Equity.
Any NRI intending to return must consult his advisors in India and overseas much before returning to India so that he can plan his tax liabilities and investments.
- Bank Fixed Deposits: such as Non-Resident Ordinary Rupee Account (NRE), Non-Resident External Rupee Account (NRE) and Foreign Currency Non-Resident Bank Deposits (FCNR).
- Mutual Funds such as NRE and NRO accounts.
- Direct Equity Invest directly in the Portfolio Investment Schemes of RBI (PINS)
- Real estate sector This gives you financial appreciation and emotional security. Most NRI’s follow this method, they go abroad but have properties back in India too.
- Investment in Government Bonds and Securities Invest in Bonds and be considered a lender.
- Certificate of Deposits NRI’s can subscribe to Certificate of Deposits but on a repatriable basis.
- National Pension Scheme (NPS) NRIs who are Indian citizens can contribute to NPS. Choose from a variety of funds like fixed income options, government securities or equity-related investments.