ET Now has an interesting article that highlights money management tips for NRIs. The practical tips include
- Maintain An NRO/NRE Account In A Bank In India – If you are an NRI and still have income sources in India such as income from ancestral property or from a rented out property, you can keep the money in India by opening an NRO bank account.
- Create A Power Of Attorney To Manage Your Property In India – If you are leaving behind your property in India, you must assign a person to take care of your assets on your behalf. I
- If You Wish To Keep Money in An Indian Bank – If you want to maintain a fund with an Indian bank, while you are abroad, you must look for a bank which has a branch in the country you reside at.
- Watch Out For Currency Rate Fluctuations – You should be careful about the currency fluctuations when making an investment or taking loan in India. A slight change in the value of Indian Rupee against the foreign currency can significantly impact your effective return.
- Weigh Your Options Before Taking Loan – Being an NRI, you have the advantage of taking loan from both Indian and International banks in the country you live in.
- Manage Your Taxes – As an NRI, you need to comply with the tax laws of both countries: where you reside and in India. The tax deduction benefits in India are more or less similar for both NRIs and the residents. Still, you might want to consult a tax advisor to maintain tax discipline.
- Stay Updated With What’s Happening in the Indian Economy – If you own properties or have money invested in India, then it is important that you stay updated with the policy and regulatory changes taking place in the country.
- Buy Health Insurance Cover – NRIs often prefer to get treatment done in India to deal with a health issue, as there is family back home to take care of them. So a health policy in India always comes handy. You can claim tax benefits on the premiums paid under Section 80D and reduce the tax liability for income accrued from India.
- If You Plan To Move Back To India – One of the important decisions to make once you are abroad is whether you want to continue living abroad or move back to India.