Key Things to Note for NRIs Before Investing In India

If you are a citizen of a country, you get the opportunity to make investments and yield attractive returns. However, the entire investment scenario isn’t radically different for NRIs. In case you are a non-resident Indian, you will also find some of the unique avenues to invest your hard-earned money. All you need to do is keep a note of the crucial aspects and then plan the entire project.

Looking for the top NRI investment in India opportunities? Here are some of the most important factors to care for:

1. Are you an NRI?

Before you take the investment decision, make sure you are aware of the most crucial factors. The first thing to note is whether you qualify as a non-resident Indian or not. Make sure you fulfil the following conditions and parameters in this context:

• If you have been present in India during the Financial-year period (month of April in the previous year and March in the current year), that too for more than 182 days, you can qualify as an NRI.
• A person can also qualify as a non-resident Indian, if he stays in the country for 60 days in a financial year (inclusive of April of the previous year and March in the current year). However, the person has to reside in the country for 365 days within four years.

These parameters will decide whether you fulfil the conditions to be an NRI. Once you are through with this aspect, it will be easier to identify and streamline the investment avenues.

2. Taxation patterns

The income earned by you in India would fall under the tax slabs as per the Income Tax Act. However, your foreign income won’t be taxable. Apart from that, you must have crystal clear ideas of the short-term and long-term capital gains. Knowing the tax patterns on dividends will also be important.

3. Check out investment options

If you have decided to make investments in the country, make sure you are aware of the profitable avenues. It’s here that most of the NRIs get confused. Enthusiastic and serious investors can opt for these avenues:

• Direct Equity: If you invest in direct equities, you won’t have to bear the brunt of any capping on your investments. However, it is imperative to ensure that you know the risks involved in the project as that will help you venture into this particular arena.
• Mutual Funds: You can also receive great returns from mutual funds. All you need to do is to breeze through the policy documents and know about some of the restrictions imposed on NRIs.
• Real estate: Buying a property is the best thing an NRI can do. Although many of them nurture misconceptions about their eligibility for home loans, there’s more to the story. Even if you are an NRI, you are eligible for property purchases in the country.

Parting thoughts

Before making the final move and invest in an avenue, make sure you go through these aspects and consider the factors involved in NRI investment in India. That will help you reap the benefits of a meaningful and tactical investment.

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