After becoming an NRI, your financial and banking needs will not be the same as those of a resident. Now you will not get any benefit from resident account in the bank. rather you have to understand What is NRI? And open special bank accounts available to you. Scroll through this article to understand the various measures available to make the most of your NRI accounts.
Choose the right type of bank account
Once you become an NRI, you will not need to maintain multiple bank accounts in India. You can have an NRO account to save all your income generated in India including dividends, rent, pension and more. Additionally, you can have an NRE account to send money to your dependents in India or use the account to bring back money from long-term investments.
If you want to completely avoid the risk of currency exchange rates, you can opt for an FCNR account. Check out the benefits of NRI account including interest, tax exemption and more to choose the right type of bank account for you.
Choose mutual fund investments correctly
Depending on whether you intend to transfer your funds in future, you should link your mutual fund investments to an NRE or NRO account. You will have to go through the KYC process once again for your existing mutual fund. Additionally, you should change the portfolio status to Non-Resident so that they can be easily linked to your bank account and manage future investments.
Keep track of exchange rates
Once you understand the meaning of NRI account, you will realize that some of these accounts are rupee-denominated. Therefore, these accounts will convert your foreign exchange funds into rupees. During conversion, the currency exchange rate prevailing in the market will be applicable. You should always be aware of the current exchange rates to get higher savings from your NRI bank account.
Get help from a tax advisor
You should have a clear understanding of the taxation associated with NRI accounts. You will not be charged any tax on the principal and interest income from NRE account. But you may be liable to tax on income from NRE account abroad.
In case of NRO accounts, you will not have to pay any tax on the principal amount. However, interest generated from NRO account is subject to TDS. Therefore, you should seek assistance from a tax advisor to get in-depth information about international taxation around you NRI accounts, These professionals will help you park your money in India in such a way that you can avoid paying taxes.
If you are an NRI, IDFC First Bank has the best bank account solutions for you. You will be able to use a single app to seamlessly open and manage your NRI bank accounts. NRIs can open NRE, NRO or FCNR account IDFC First Bank, So, open your NRI account today to take care of all your funds in India.