7 Smart Financial Tips for NRI Homecoming

What to Consider Upon Returning to India as an NRI?

Starting a new journey ensures  a smooth financial shift. Whether you are settling permanently or temporarily, navigating financial landscape needs careful thought.

Once you are back, a smart move is to restructure your bank accounts. Modify your existing accounts as resident accounts.

Revamp Your Bank Accounts

Managing FCNR Accounts

You can continue your FCNR accounts until their maturity date.

Handling Demat Accounts

Organize your finances with opening a resident Demat account, ideal for transferring shares from your NRI Demat account and closing your NRI Demat account.

For NRI investors in mutual funds, aligning investments with new residential status is crucial. Update bank details and change mutual fund status from NRI to resident.

Updating Mutual Fund Investments

Managing Fixed  Deposits

Evaluate your fixed deposits (FDs) and decide whether to continue, liquidate, or reinvest them.

Stay informed about the latest income tax updates as an NRI and potential benefits available to returning NRIs.

Familiarise With New Tax Updates

Understanding Tax Implications on NRE Accounts

Interest in the NRE account is tax-exempt for NRIs in India. If an NRI becomes a resident, the interest becomes taxable unless RBI permission is obtained.

Tax Implications on NRO Accounts

Interest in the NRO account is taxable in India, with a 30.9% TDS applied and deducted by the bank.

Final Words

Shifting from NRI to resident status changes your financial situation. These tips upon return will help you integrate smoothly into the local financial system.