NRI, the non-resident of India is the status obtained as soon as a person leaves India and visits a foreign country as a temporary employee, business men with Indian citizenship, student visa (with some exceptions) , temporarily posted in foreign nation by state and central government agencies such as banks, IMF (International Monetary Fund). Note that visitor visa doesnt entitle you to obtain NRI status.
So, as an NRI can I invest in India?
The simple answer is yes. You as an NRI are entitled to invest your hard earned money in India. Here are some popular ways to invest your hard earned money in India
1) Fixed deposits - Open a NRE, NRO , FCNR, RCF fixed deposit that gives constant yiels monthly, quarterly, annual basis or upon maturity. The interest earned is taxable at rate of 30%. It is interesting to note that if you are an NRI you can utilize the double taxation avoidance agreement the treaty that Indian government has with some countries that helps you have your returns taxed at a lower interest rate of 15.45% (includes tax deducted at source popularly called the TDS, education tax, cess)
2) Gold deposit - Have your money remitted to your relatives in India and ask them to purchase gold coins, gold bars, gold jewellery in banks, reputed jewellery stores, popular shops like TATAS tanishq. Gold has tax at the time of purchase after which there is not tax upon sale
3) Mutual Funds - As opposed to popular belief that NRI's can invest in all the mutual funds, only chosen few funds are open to general public. The income earned on mutual funds are taxable
4) Fixed maturity plans - This is a popular option similar to mutual funds. Some popular reputed mutual funds are operated by best bank SBI and other private sector bank like ICICI, HDFC, Kotak Mahindra, Birla group, Reliance etc
5) Real estate - The best ever enticing investment is the real estate. This includes investment in land, home under construction, second hand home, apartments and NRI's are eligible for tax upto 5 crores based on level of income. It is to be notes that the rental income earned needs to be filed as income tax in India.
So, as an NRI can I invest in India?
The simple answer is yes. You as an NRI are entitled to invest your hard earned money in India. Here are some popular ways to invest your hard earned money in India
1) Fixed deposits - Open a NRE, NRO , FCNR, RCF fixed deposit that gives constant yiels monthly, quarterly, annual basis or upon maturity. The interest earned is taxable at rate of 30%. It is interesting to note that if you are an NRI you can utilize the double taxation avoidance agreement the treaty that Indian government has with some countries that helps you have your returns taxed at a lower interest rate of 15.45% (includes tax deducted at source popularly called the TDS, education tax, cess)
2) Gold deposit - Have your money remitted to your relatives in India and ask them to purchase gold coins, gold bars, gold jewellery in banks, reputed jewellery stores, popular shops like TATAS tanishq. Gold has tax at the time of purchase after which there is not tax upon sale
3) Mutual Funds - As opposed to popular belief that NRI's can invest in all the mutual funds, only chosen few funds are open to general public. The income earned on mutual funds are taxable
4) Fixed maturity plans - This is a popular option similar to mutual funds. Some popular reputed mutual funds are operated by best bank SBI and other private sector bank like ICICI, HDFC, Kotak Mahindra, Birla group, Reliance etc
5) Real estate - The best ever enticing investment is the real estate. This includes investment in land, home under construction, second hand home, apartments and NRI's are eligible for tax upto 5 crores based on level of income. It is to be notes that the rental income earned needs to be filed as income tax in India.
