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Services2NRI Assists In NRI Investment Services in India

Services2NRI Assists In NRI Investment Services in India

The non-residents have a ton of investment opportunities in India. But, the lack of sufficient knowledge and the fear of being fooled often make them reluctant. However, the Indian economy is getting stronger by the day, which is a positive sign for those who intend to invest here.

Services2NRI, being an experienced financial consultant, has gained ground in offering assistance in NRI investment services. The radius of our services covers all these non-resident services:

  1. Fixed Deposits: The fixed deposits are investments that remain barred from market fluctuations. In other ways, the inflation does not cast impact on their interest rate earned. It means that the investor can enjoy fixed income through their interest for that particular tenure.

Also, the principal amount consistently increases without being a failure.

  • NRE FD: This account allows expats to secure high term deposits, wherein the foreign currency converts into rupees. The interest rate varies as per bank. The non-residents can remit their money in an Indian account.
  • NRO FD: Like NRE FD account, it is also meant for a term deposit in allows fund transfer into the foreign account. But, the amount in this account is taxable, as its limit is up to $1 million. It can be opened jointly.
  • FCNR FD: This account for the term deposit ensures saving foreign currency. The interest earned on this NRI investment is repatriable to the depositor’s country of residence without any restriction. It remains unaffected from the market fluctuation.
  1. Mutual Funds: They are the risk-prone investments that are governed under the strict regulations of the Securities Exchange Board of India (SEBI). Being a subject matter of risks, the Indian diaspora often seconds the thought of this investment.
  • Equity: It typically refers to the amount of money that is returned to the company by liquidating assets and paying off the debts. The expats with the Indian passport can park their money in it as a long term deposit because it is tax free after one year.
  • Debt Funds: Those who want to invest the majority of their corpus in fixed income or fixed interest, the debt funds, such as a money market instrument, corporate bonds, treasury bills and government securities etc., bring the best opportunities.
  1. Direct Equity: Investment in the direct equity means investing in stocks of a company. If you have enough knowledge about the National Stock Exchange of India (NSE), it attracts a dozen of opportunities.

For being a part of this investment plan, the NRIs should have:

  • An NRE/NRO account solely dedicated to PIS purposes
  • A dematerialized account for holding electronic shares
  • A SEBI trading account with a registered broker
  1. Real Estate/Property: The majority of non-resident community prefers parking their hard-earned money into property. Since it accumulates capital gain through rental income or the sale of the property, the owners seek assistance, or virtual assistance in property management services. Services2NRI supports in these property-based matters:
  • Buying/selling assistance
  • Encumbrance /Khata/ Patta/ 7/12 Certificate
  • Tenant Management/ Vacating Inspection
  • Utility Bill Payment
  • Property Monitoring
  1. Bonds & Convertible Debenture
  • PSU Bonds, a short for Public Sector Undertaking bonds, are about lending money to a company on the promise of being repaid with the interest on a specific date. The creditworthiness of the bank determines its interest rate
  • Non-Convertible Debenture determines investment in bonds, wherein the interest rate is higher than the convertible debts, but involves less risk. When withdrawing, the bond holder is repaid with cash in full.
  • Perpetual Bonds are the bonds with no maturity date to be paid out. But, the issuing company pays the return at the end of a particular tenure. The principal amount cannot be redeemed.
  1. Government Securities: These investments are announced to finance day to day governmental operations, military operations and infrastructural development. The Reserve Bank of India (RBI) auctions the T-bills for 3 to 12 months. Unlike any interest rate, they promise a coupon to be redeemed on a discount.
  • Fixed Rate Bonds: These bonds ensure a fixed rate of interest on investment.
  • Floating Rate Bonds-These bonds offer interest according to the market fluctuations.
  • Capital Index Bonds: These bonds allow coupon payment rate, which is adjusted corresponding to the inflation rates.
  1. Certificate of Deposits: Unlike FDs, these are a small term investment, which is saleable. The person needs a dematerialized account for its purchase and selling.
  2. National Pension Scheme (NPS): It is the best investment plan to save money for retirement. However, the account holder shall be in between 18 years and 60 years of age.

It locks all payments until retirement. If you retire at 60, this scheme allows withdrawal of 40% of the corpus amount. On the other hand, the withdrawal rate would be limited to 20% if you want to get it before 20%. The rest of the amount must be invested in the annuity.

  1. Wealth Management: It merges both financial planning and specialized financial services, including personal retail banking, estate planning, legal and tax advice and investment management It aims at conserving and sustaining wealth. Services2NRI deals in these wealth related matters:
  • Attending to IT Notice
  • Tax Authority Visits
  • Arranging Lawyers , Legal Opinion
  • Filing IT Returns
  • Legalisation, Notarization, Attestation of Documents
  • Court Visits
  1. Finance Consulting: Mostly, you skip settling the insurance account or its matters at the time of immigration. Services2NRI lets you sort out such challenges that are in the context of insurance and loan, specifically these services:
  • Insurance(Life Insurance, Mediclaims Insurance, General Insurance)
  • Loan Syndication
  • Document Attestation

Best NRI Investment Options in India in 2019

Best NRI Investment Options in India in 2019

India is turning into a profitable ground in terms of NRI investment. The government has been improvising several legislations and rules to attract investment by NRIs in India in 2019. Here are a few options that are going to stretch to the heights of popularity as the best investment option.

  1. NRE account investment:
  • Can open with minimum amount
  • Can have joint holding, like your spouse or children
  • NRE deposits are tax free in India as they are not counted in your taxable income
  • Higher rate of returns on account deposits, i.e. more than 10%
  • Highly secure and risk-free investment plan for NRIs
  • Easily & freely repatriate or move funds, including interest and principal amount
  • Unique accessibility advantages, like shopping globally, booking air tickets online
  • Can pay bills within the country
  1. Mutual funds investment:
  • Open NRO/ NRE/ FCNR account, besides SIP account for MF investment
  • Manageable from the country where you live in
  • Profit making possibilities soar with the appreciation in the rupee value
  • Can appoint a Power of Attorney to invest on your behalf
  • Tax free mutual fund gains, if they are retained for more than a year.
  • Tax is deducted at a source of the capital gains, if you invest the holdings for more than a year. You have to pay 10% tax at a source of long term capital gains. It turns 15% if income is sourced through a short term capital gain.
  • Debt funds investment (made for 3 years) adds profit to the NRIs income. Presently, 20% tax is levied on its gain with indexation benefits. If excludes indexation, only 10% tax will be deducted.
  1. FPI investment: FPI stands for foreign portfolio investors. The SEBI or ‘Securities and Exchange Board of India Panel’ has introduced a route viz. voluntary retention route (VRR) for the NRIs investment in 2019. It aims at introducing a uniform regime for all foreign portfolio investors. What features it comprises are:
  • Indian diaspora in foreign can directly invest in the Indian companies.
  • NRIs and OCIs can purchase mutual funds units, spend money in private equities and also use the foreign FPI route.
  • They can invest in debentures of the Indian companies and government securities, like treasury bills.
  • They can retain a minimum required percentage of the long term investment in debt for the period of their choice.
  • This investment is free from the macro-prudential and other regulatory prescriptions that are applicable FPIs in debt markets.
  • The Reserve Bank of India will stipulate the amount of investment in India.
  • The NRIs shall have to retain that amount for at least three years.
  • The investor can participate in any currency and interest rate derivative instrument, OTC or exchanged traded to protect their interest rate or currency risk.
  1. Real-Estate investment: There are many factors that make the real-estate an attractive option for NRI investment.
  • Rental income through a property will be an additional source since the prices have been revised a lot in the previous years.
  • Rather than investing in the Tier 1 cities, the NRI community is tilted to the Tier 2 and Tier 3 cities. It’s just because of the infrastructure development via property investment is gaining momentum rapidly in India.
  • The return on property investment is relatively higher if you invest in the commercial property.
  • The weak value of rupees gives dollar-holders strength. The NRIs can invest minimally to buy the property. The discouraged value of the Indian currency enables them to buy more pieces of land.
  • The regulatory norms have introduced more transparency and added accountability on the part of the real-estate development agencies while complying with RERA.
  1. National Pension Scheme: This is a valid investment option for those who have retained Indian citizenship. They can opt for it if they want to re-locate in India after retirement.
  • It offers leverages in the tax as it follows EET (Exempt-Exempt-Tax) layout.
  • The non-residents can attract good returns.

How NRIs Can Make More Money via Investment In India in 2017?

How NRIs Can Make More Money via Investment In India in 2017?

Are you soon settling in the foreign country?

Do you have Public Provident Fund (PPF) account and National Saving Certificate (NSC)?

If yes, you must be updated with the current update. But first, let’s catch a brief over PPF account.

What is PPF account?

As stated above, PPF stands for the Public Provident Fund. It’s a long term investment plan. The government imposes no tax over it. It implies that this 15-year long investment plan gives a sigh of relief from the tax. The smart parents or guardians go for this investment on behalf of their minors. It safeguards INR 500 to INR 1.5 lakh for 15 years with the benefit of high interest rate. Currently, the investor gets 7.8% interest rate over such kind of investment.

Until this year (2017), the non-resident diaspora was delighted to save tax via it. But the recent update has disappointed them. The tax free investment for NRIs via PPF is forbidden. Only residents of India can sink money into this government scheme.

What’s the update regarding PPF and NSC?

If you’re likely to shift abroad, you must know that:

  • Your PPF account would be deemed close.
  • The NSC will return you the interest amount @ 4% that is currently prevalent in the Post Office saving account.

Earlier, it was yielding 7.8% return on the overall PPF & NSC account investment. But now, this practice is over.

Let’s consider a scenario wherein you are likely to shift in the foreign country. You hold a PPF account that makes you worthy to accumulate the interest of 7.8% over total investment. The day you shed off your residential status, your this account would be closed. And the interest rate would be slashed to 4% as per post office saving account’s rate. But the slashed interest rate would be applied from the previous month when your PPF account was closed.

It implies that your account would be matured before its actual maturity date. This is why you need to encash the accumulated amount when you become an NRI.

How can you save more money after this update?

The financial advisors recommend that it would be a wise idea to encash the invested amount. The accumulated amount should be withdrawn. If you want to invest it further, it’s better to sink your amount into the equity that offers repatriability of Indian investments. Go through the tax intricacies as well.

NPS-the best money saving investment for NRIs:

National Pension System (NPS) is one of the best investment options in India (2017) if you’re planning to re-settle in India. It conserves your money for the long term after retirement. Besides this, you’d get a golden chance to multiply your amount via a great rate of interest.

But, do remember to look into the foreign investment rules of the resident country. Some countries will not charge any tax if you have paid it in India over your capital income. Let’s say, you’re living in the US. You have to reveal the source of ‘how much’ equity as well as asset you possess. The tenet of FATCA makes you bound to its rules. The US tax authority would definitely want to know your total investment and annuity. This is how it would compute the amount of tax over your income.

On the other side, the Gulf countries would not seek access to such investment details. Neither do they impose taxes on the income sourced through Indian asset or equity. Therefore, if you desire to resettle in India after a long stay in such countries, NPS will be a good alternative.

CA Certification for NRI Investment No More Compulsory

CA Certification for NRI Investment No More Compulsory

Taxation policy updates are the alarming bells set for the tax payers. Non-residents of India used to find them chill wind to encounter with. Over the years, scenario has been changed. Relaxation in stringent taxation policies is introduced. This is done to get migrants head around NRI investment in various sectors, such as real-estate, housing, finance and technology.

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