Procedures for NRIs to Do Investment in India

India is the investment market where recession cast no impact. This is a significant reason for NRIs to entrust their hard earned money in safe hands. Productivity graph of Indian market is going upwards. The reputed economists see this land as the safe basket to secure their money for future. Let’s check out what legal services for NRI has in rundown for investment.

Open saving account: This is a typical initial step for investing money in India. Having a saving account facilitates convenience in depositing and transferring money to Indian account. You have a number of alternates for it. HDFC, SBI, Axis bank and ICICI are few of the ones which have their branches abroad also. Opening account in any of these can let your transactions meet ‘nil’ barriers.  However, saving a/c maintains legitimate deposition of dues, earnings, income (as dividends, interest etc.). The foretold banks voluntarily decide interest rate. So, ponder this aspect also.

Which NRI account provides what?

NRE: Remitting offshore earnings to India will be hassle free through this account. But you have to be ready for currency conversion as it allows deposition only in INR. These are opened for 1 year.

Advantage:

• If you have repatriation of the investment back to India at any corner of your mind, this account can be the best choice.
• It is exempted from legal restrictions.
• It’s tax free.
• The interest earned is also exempted from tax.

Disadvantage:

• Income from rent savings, recurring and fixed deposit is not allowed.
• Foreign currency is to be exchange whose value will be lesser.

NRO: Non-resident ordinary (NRO) account can be maintained in the form of current, savings, recurring and fixed deposit account.

Advantages:

• It facilitates deposit of income from rent, salary and dividend.
• In association with resident Indian, a joint account can be opened by NRIs.

Disadvantage:  

• Income is taxed at 30% including surcharge and cess.
• Wealth tax is also levied.

FCNR: Do you want to stay away from exchanging your foreign currency into Indian rupee? If yes, this type of account is just for you. Its validity period is from 1 to 5 years.

Advantage:

• The account can be open with a local bank.
• Foreign currency does not exchange.
• Loans are expendable against the security of its deposits.

Disadvantage:

• Maturity period is very less.

NRIs can visit to any of the branches of Indian bank in the resident country. There, they can fill the form for opening any of these accounts. Online and offline facility can make it quicker.